Starting a nonprofit
Have you ever had an idea you can see so clearly, so precisely, that you know it has to be shared with the rest of your community, state, country, or even the whole world? You’ve probably thought about starting a non-profit organization as a way to turn your dream into a reality.
It’s important to remember that a non-profit organization is a business, just like all the for-profit companies out there. You should think like a CEO right from the start. With the proper tools and support, you can start giving back to your community and changing lives. In this post, we’ll explore four things you should do as you make plans to get your non-profit organization up and running.
A nonprofit can never be too careful when screening its employees and volunteers. As such, more are conducting due diligence on their employees and volunteers. This is particularly true for those that serve vulnerable populations like children, the elderly, or abuse victims. Part of that diligence is having the volunteer fingerprinted for a background check. If your organization is considering adding this step to its due diligence, do you know where to go for fingerprint background checks?
When affiliated nonprofits work closely together, it is often cost effective to have some shared staff. When structuring shared staffing arrangements, it is important to carefully consider and document how costs will be allocated between the organization. Common arrangements include employee leasing and employee loan arrangements.
Once a potential founder has read our post on Nonprofit Business Planning “ Steal All the Underpants, and has determined that a new nonprofit organization would serve a legitimate need in the community and can be supported without stealing any underpants, she must then consider the steps necessary to form the nonprofit corporation in Washington State and obtain tax-exemption from the IRS.
Newly formed charities often encounter a chicken and egg problem. They wish to begin their operations before they receive formal approval of their tax-exempt status but they can’t attract funding until they receive their federal 501(c)(3) determination.
In practice, a NGO is an organization that is neither a part of a government nor a conventional for-profit business. Therefore, NGO is a broad term that encompasses traditional private nonprofits as well as many other forms of mission-based organizations.