Thinking Of Starting A Nonprofit? Here’s What You Need To Know

This guide can help you take the first steps to creating your own nonprofit business.

Starting a nonprofit allows you to give back to your community in a way that you would not be able to with a for-profit company. However, many of the same steps that you need to take to start a nonprofit are the same as if you were going to start a for-profit.

To help you start your own nonprofit, keep this guide in mind.

Create a plan and do some research

There are a few initial questions that you need to ask yourself before starting a non-profit to help guide the rest of the process, including:

  • Who do I want to reach?
  • What is my objective?
  • What does my timeline look like?
  • Do I have the resources I need?

As you take the first steps in starting a nonprofit, you should spend some time creating a detailed business plan. Parts of your business plan will come in handy when you file your federal Form 1023 application for tax-exemption status and for future fundraising. You will also need to figure out what your initial startup costs will be, as well as your future operating costs.

Establish governance and incorporate

Establishing a non-profit requires most of the same paperwork that you would need to fill out for a for-profit company. You may also need to fill out more forms in order to get a 501(c)(3) status.  In order to make the process of getting to 501(c)(3) status and incorporation much easier and faster, you will need to pick a relevant and creative name, recruit a board of directors, and decide on the legal structure that you will follow.

Most importantly, you will need to ensure that your non-profit is covered with the right insurance policies. Contact the professionals at Colorado Nonprofit Insurance Agency in Denver, Colorado for all of your needs when starting a nonprofit.