You might be surprised by how easy it is to start and run a nonprofit organization. Depending on the type of organization you wish to run, you can be off and running in a matter of weeks. More complex nonprofits will take more planning, paperwork and funds to launch, but you can start small and work toward growing your charity, civic association or other nonprofit group.
If you'd like to start and run a nonprofit, either to help a cause or create a rewarding job for yourself, you have your choice of many different options to review before you get started.
What is a Nonprofit Group?
Nonprofits are initially formed and recognized at the state level. This is often a simple matter of applying online and paying an incorporation fee, usually $100 or less. At this point, you have formed a nonprofit corporation, but you don't have IRS recognition as a tax-exempt federal organization.
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The IRS recognizes and designated dozens of different types of nonprofits, awarding 501(c) tax-exempt designations based on what these organizations do. For example, if you want to start a local or statewide trade association for people in your profession, you would apply for a 501(c)(6) designation. If you want to start a charity, you would apply for a 501(c)(3) designation.
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If someone donates money to a 501(c)(6) organization, they do not get to write off that donation, because the nonprofit is not doing charitable work. A donation to a 501(c)(3) is deductible.
Many smaller nonprofit groups never apply for IRS tax exemption because they don't need the tax benefits. For example, if you start a nonprofit youth sports league in your town and won't be bringing in much money or asking for donations, you won't need to apply for 501(c) status.
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Ideas for Nonprofit Organizations
Whether or not you have an idea for what type of nonprofit you want to start, it's a good idea to review your options. According to the IRS, there are other types of 501(c) designations and what they cover. This will help you determine how the IRS will probably classify your nonprofit idea.
After reading this document, you might decide that you only need to incorporate as a nonprofit in your state and not go through the paperwork, time and expense of becoming a 501(c).
Below are a list of the nonprofit organizations you might consider starting that have broad appeal:
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- Youth sports
- Youth welfare (e.g., education, anti-drug, arts)
- Animal welfare
- Religious
- Educational
- Scholarship
- Arts and culture
- Civic group (e.g., garden club)
How to Launch Your Nonprofit Group
If you are looking for others to help you start and/or run a nonprofit, make announcements that you are holding a meeting to discuss forming a specific organization. Take advantage of social media channels such as Nextdoor, Facebook and Twitter. Look for groups and hashtags related to your organization's activity.
Have handouts prepared letting attendees know what the purpose of the organization might be, the formation process and the roles of volunteers.
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Depending on your state's rules, you might be able to launch with as few as three board members, such as a president, secretary and treasurer. You can add a vice president and board members at large if you have more volunteers.
To register as a corporation, start by following the simple directions at your state's secretary of state's website, recommends legal website NOLO. You will need a name for your organization, a purpose, the names and addresses of your board of directors and the filing fee.
At your first meeting, describe some of the activities you might do, such as membership recruitment using social media posts, direct mail and volunteer phone calls. Look into crowdfunding to raise money for a website, liability insurance and other expenses. Ask for volunteer committee members to handle sponsorships, marketing, blog posts, social media updates and financial paperwork.
Get Expert Help
Take advantage of the expertise of others running nonprofit groups in your area, even if they work at large organizations. Ask executive directors or specific department heads (e.g., fundraising or membership) to meet for lunch or take a Zoom meeting or phone call to answer your questions and offer advice. Check out your local library or online resources for nonprofit marketing books.
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References
Steve Milano
Contributor
Steve Milano is a journalist and business executive/consultant. He has helped dozens of for-profit companies and nonprofits with their marketing and operations. Steve has written more than 8,000 articles during his career, focusing on small business, careers, personal finance and health and fitness. Steve also turned his tennis hobby into a career, coaching, writing, running nonprofits and conducting workshops around the globe.