4 Tips for Getting a Charitable/Philanthropic Business Up and Running   

Non-profits are often seen as the antidote to the corporate 9-to-5 grind. They are the place that talented people can go to make a real difference in the lives of others, whether in their own community or across the globe.

Take the example of Reshma Saujani, the founder of Girls Who Code, a non-profit that seeks to educate girls in computer science to ensure equal representation in that important field. During campaign stops on her election campaign to become a U.S. Congresswoman from New York, Saujani noticed the disparity in the number of women in computer classrooms. While she wasn’t successful in her bid for public office, she was successful in starting her own non-profit.

According to Girls Who Code, 74% of young women are interested in science, technology, engineering and math (STEM) in middle school, but by the time college comes around, only .04% choose it as their major. Saujani took inspiration from her experience to create a much needed and very successful non-profit.

Saujani is not alone in creating an organization to meet an important need. Nationally, the number of non-profit organizations continues to rise, with new companies starting to address community, national and international needs every day.

Whether inspiration hit you like a lightning bolt today, or you’ve been ruminating over a potential business idea for years, here are five tips to starting your own non-profit.

Survey the Non-Profit Landscape
Be on the lookout for an over-saturated market; the success of any non-profit comes from filling a void. So if there are five other animal rights groups that serve your area, and another three with national chapters in your region, it may be better to offer your services to those groups instead of starting your own. On the other hand, if you can’t find a single group that overlaps with your idea, it may be time to get serious about your plan.

Just because you’re starting a non-profit doesn’t mean business best practices can be left at the door.  Instead, create a business plan that spells out the following:

• Your company’s vision and mission
• How your non-profit is different
• The services it will provide
• The budget and income sources you expect

In general, a deliberate business plan that has been shared with mentors and collaborators for feedback will serve you well as you get the business off the ground.

Paperwork Galore
You decided to go down this path to work with people, save abandoned animals, preserve beautiful natural spaces, or some other laudable goal. But first, you will have to file lots of paperwork. If you aren’t an attorney yourself, it may be time to lawyer up. Spending a bit of money up front to ensure your incorporation and tax status filing goes smoothly, and will be well worth it.

Begin by checking with your Department of State (or similar state agency) to determine how to file articles of incorporation. Choose a name that is unlike the name of any other existing organization in your space. Your articles of incorporation will also include your bylaws, another detail that a lawyer can help with since your state may have specific requirements.

After you file articles of incorporation with your state, you can move on to filing for 501(c)3 status with the Internal Revenue Service. While there are many benefits to this status, including tax exemption, there are also limitations. For example, a 501(c)3 organization can’t endorse political candidates. Legal counsel can explain the requirements of this status in depth to ensure it is right for you.

Fundraising
An effective fundraising campaign is critical to any non-profit’s success. Many people mistakenly think that non-profit means “no income,” but salaries and benefits must be paid, services must be rendered and the lights need to stay on. All of this takes income, which will most likely come via donations and grants.

Partnering with an online portal that provides an easy “donate now” link for your website will provide peer-to-peer fundraising pages and makes essential reporting and communications with donors easy. This will also free up time for you to focus on your mission.

Form a Team
You’ve been relying on an informal network of mentors and experienced practitioners until now.  It’s time to form the non-profit dream team you’ll need to be a success. Depending on your organization, this may include:

• Employees or consultants
• Your attorney
• An accountant with non-profit experience
• A development expert
• A communications and public relations professional

Revisit your business plan often to make sure the growth is in line with your goals and mission.

It’s Showtime!

Entrepreneurs are often visionaries. They are energetic people who have a big picture dream. All of the minute details that go along with starting your own non-profit can bring that enthusiasm crashing down. But now that you’ve taken the steps to set a solid professional foundation, and it’s time to start living out the mission of your organization. This is when the real fun begins.

Many people encounter needs around them and barely notice, or they think someone else will come along to fix the problem. If you are a social entrepreneur, someone who wants to start their own non-profit to make the world a better place by providing a service, following these five easy steps will put you on the road to success.