Considerations Before Forming a Nonprofit
If you’re passionate about helping others and have an idea to serve your community, starting a nonprofit is a great way to turn your vision into a reality. There are many different types of nonprofits—religious, educational, human service, animal welfare, and more. What all nonprofits have in common is a focus on helping others and benefiting their community.
Before you start a new nonprofit, make sure you have identified an unmet need in your community and know that there are not any existing organizations serving your cause. If another organization exists, consider working together, as that may be a better way to make an impact in your community and invest existing resources.
When you are ready to start your nonprofit, plan to incorporate and apply for 501(c) status, as these are important steps to fully achieve your goal. As an incorporated nonprofit, you limit the liability of your organization’s officers and directors. When you achieve 501(c)(3) status, you will be able to apply for grants, provide tax deductions to your donors for their contributions, and be exempt from federal corporate income tax. Most importantly, you will gain credibility and legitimacy for your cause, instilling the public with confidence in your organization.
If after careful consideration you’re ready to start your nonprofit, we can help. You want to make sure everything is done right. Let’s dig into each step a little more. We’ll help you navigate this time-consuming and expensive process.
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