Starting a Nonprofit
In its most basic form, a nonprofit organization is a tax-exempt organization that doesn’t focus primarily on making money and serves the public interest. Nonprofits are vital to society because they strengthen communities by providing the educational, health, and social services that citizens need and that the government cannot fully provide. They also contributed $1.4 trillion to the U.S. economy. There are more than 1.5 million nonprofits registered in the United States. This is an encouraging number but also can be a concerning one if you are trying to set yourself apart from similar organizations that serve the same mission. Ensuring you differentiate yourself can be a challenge, but by building a solid foundation that includes a strong mission statement, a unique value proposition, and a clear vision, you should find success.
Aside from choosing your name and crafting your mission statement, there are other processes that are required to create your nonprofit. This includes researching the forms that need to be filled out. It’s important to note that each state has different requirements, so clear research is paramount in order to get everything in order. If you live in the United States, you’ll have to:
- Incorporate your nonprofit, which offers limited liability protection, meaning that only the assets of the organization can be targeted. In addition, incorporating adds legitimacy to your organization.
- It is necessary for employers to obtain an Employer Identification Number (EIN) so that they can identify their tax accounts. Before a nonprofit organization or charity can apply for tax exemption, they must have their EIN.
- Get tax-exempt status to free the taxpayer from paying taxes on tax-free transactions and income.
- Register with your state to collect donations, this is required for nonprofits before engaging in any fundraising or solicitation activities if they are soliciting donations.
Tips for Savings as a Nonprofit
Increasingly, individuals like you are inspired to start a nonprofit to help improve the lives of others. It’s an amazing way to bring people together and make a difference in your community. Starting a nonprofit and running through your checklist can be an overwhelming process and not always an inexpensive one. Even after you start your nonprofit, maintaining it is not an easy task, and finding resources to support your cause can be difficult. You face a relentless gap between your vision and the resources you have to achieve it.
Here are a few ways to help keep your costs low and save money:
- Choose fundraising materials that are reusable, such as t-shirts, vinyl signs, and posters.
- It is possible to remedy a staff shortage with volunteers, who can fill the gap withoutincreasing your budget.
- By going paperless, you can save money on printer ink, reams of paper, writing instruments, and many other things by reducing the use of paper.
- Use Agape Distribution’s Agency Store which provides discounted goods and supplies for nonprofits
