Understanding Nonprofit Structures
Let’s start by defining a 501(c)(3) nonprofit. When you hear c3, most refer to a public charity accepting tax-deductible donations. Not every nonprofit should be a c3. Don’t assume starting a nonprofit means 501(c)(3) status. Depending on what you do and who you serve, it might not fit.
With so many nonprofits to start, which fits you? It comes down to your main purpose. Once determined, form your nonprofit with confidence. Whether a charitable cause, trade association or advocating legislative change, there’s a nonprofit for you.
Establishing a nonprofit starts with choosing structure. A nonprofit group picks up trash or recyclables at a park. Understanding types can decide your nonprofit’s structure.
Starting Your Nonprofit
Starting a nonprofit allows you to use your business talent, education, and experience for the good of humanity. This purpose-driven experience can yield rewards more valuable than wealth.
Your nonprofit idea will be clear now. Define your purpose and values. With over 10 million nonprofits, being unique is hard. Finding your goal to motivate you and your organization is key.
Like any business, much goes into a nonprofit. Don’t let paperwork intimidate you. In 8 steps, make your community impact.
Steps to Begin
- Know the legal requirements.
- Have a mission statement.
- Research expenses and finances.
- Fundraise.
- Pick a name.
- Legally incorporate.
- Apply for tax exemptions.
- Create a business plan.
- Use online fundraising platforms (allowing recurring donations).
- Attend networking events.
- Spread word about your cause.
With grit and resilience, you can start a nonprofit even with limited funds. Where there’s a will, there’s a way.