Archive for the ‘Start a nonprofit’ Category

Anxiety has its place. Sometimes when I don’t feel anxious at all, I know it is a sign that I am not reaching outside of my comfort zone. So, last week when I was so nervous about the Maryland Association of Nonprofit Organizations conference, it was because I knew that I was leaping outside of my little box into the unknown. And, I am happy to report back that the unknown received me warmly with open arms.

Laura and I arrived at the conference center on Friday, November 9 at 7:10am, and there were many other vendors setting up. We setup our table, grabbed breakfast, and then settled in for the attendees to start filing in. I expected about 600; however, there were only 450 registered. The attendees trickled into the exhibit hall very very slowly. We could tell when they were in a breakout session because the exhibit hall was quiet and empty. The vendors mingled, and then boom the attendees were back again. This went on for eight hours – in for 20 to 30 minutes out for an hour.

I prepared 500 packets, I had chocolate at my table (a big hit), and I prepared a gift certificate for a free initial year’s membership to Nonprofit Connectors online membership community. I stood out front of my table and greeted everyone with a big smile. I was surprised about how hard it was to just give information away. I had one guy actually say to me, referring to my one page information sheet, “Tell me what this is about before I take it.” Of course I did. I just never thought it would be so hard to give people a sheet of paper. Of the 500 pieces I created, I came one with 450 pieces.

It may not sound like it, but it definitely was a successful venture. Just to hear the 50 or so industry people who did take information say to me, “This sounds like an excellent idea.” That was encouraging. It reaffirmed my belief that there can be more than one entity providing a similar service, and we all will be able to get along.

I am so happy to announce to you that the virtual doors to Nonprofit Connectors are now open. Please stop by and browse the site. I hope you find it to be an exciting new tool that you can take advantage of as well.

Initially I was going to write a follow up article all about the IRS 1023 Form. I was going to go through the various parts, and give you some details about completing the form. Then as I started writing the article, I realized that this form, while extremely long, is really self-explanatory.

Take some time and really read the instructions. While the instructions are very detailed for each question, I highly recommend that you work with a consultant or lawyer to complete this form; two heads are better than one for this project.

It would be interesting to hear from people that have completed this form. Did you do it yourself? Did you seek out assistance to complete this form? What do you recommend. Or perhaps, you are a consultant, and you want to share you point of view. Share.

A company is incorporated to protect the owner against liability, and to set itself apart as its own entity. Incorporating your nonprofit ensures its longevity. It also completes the first step in being able to submit Form 1023 for tax-exempt status.

Each state has its own regulations for incorporation. To check out your state requirements go here. You can apply for incorporation on your own, you can procure the services of an attorney to do it for you, or you can seek the assistance of a consultant. As you can see, there are many roads to travel to get your nonprofit organization started. Getting your 501(c)(3) is very important if you intend to collect tax-exempt gifts.

There are a few instances where tax-exempt status doesn’t require incorporation: associations, trusts, and churches. Incorporation is not necessary for nonprofit organizations that expect to collect less than $5,000.00 a year. However, nonprofit organizations are still encouraged to incorporate for liability protection.

Do you need assistance with setting up your nonprofit?

Nonprofit Connectors (NPC) is a consulting company that I designed to assist individuals who want to start a nonprofit, and connect new nonprofits with established ones. Our goal is to help individuals through the nonprofit startup phase, and then through NPC’s community area new nonprofits will be able to seek additional guidance from established nonprofits through conversations in our private members only area.

This idea came about as I started compiling a list of resources to help anyone start a nonprofit. I thought I would set my resources up from the first step through to finding a location to house your nonprofit. As the idea grew, it was apparent to me that what I created would be useful to anyone at any phase in the nonprofit process. So, that’s how NPC was created.

I am a certified master virtual assistant (CMVA), which means I provide administrative support to my clients from my home office. My clients are all in the nonprofit sector either as volunteer boards of directors or executive directors. I started my first business, Virtual Details, LLC, in September 2000, and then I started working with nonprofit groups in 2001. I’ve been so involved with nonprofits over the course of the last six years that I decided to start a second business that will be dedicated to helping new nonprofits get started.

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You’re ready to start your great nonprofit. You have visions of community leaders from blocks around knocking at your door asking to participate in your great project. You know who your board members will be, and it is looking good. You’ve started on your marketing plan. Now, you are sitting down to put your budget together, and you happen upon the line 17 on IRS form 1023 “Compensation of officers, directors, and trustees.” What you put in that little box could make the difference between a particular funder giving you money or not; so, choose wisely.

As you plan out your nonprofit business plan, you’ll probably find several areas where you would benefit from
staff presence. It is a known fact that salaries and benefits are the highest allocation in any business’s budget. However, I would caution you against starting your nonprofit with lots of staff members. Most nonprofits operate with the support of volunteers for the first few years. Also, it’s more appealing to funders that their financial contributions go directly to supporting the projects of the organization and not just to salaries.

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Have an idea for a great nonprofit? Before you get started, you must do your homework. This can be the toughest part, because you will want to view things objectively so you can make a great decision for those involved. Just because you have a great idea that you think highly of, doesn’t mean that it will go over in the marketplace. To ensure your venture’s success, you need to do the same research required for starting a for-profit company.

It is best to start to sort out your thoughts by answering the basic questions who, what, when, where, why, and how. To help you do that, here are 10 tips:

1. Write your idea out in as much detail as possible. Be as specific as you can, including your every thought. The best part about this exercise is when you’ve finished gathering this information you’ll have what you need to start to formulate your mission statement.
2. Research and find out all you can about what you want to do and the community in which you want to help. This is your opportunity to check out your competition.

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A couple struggled to get housing. After months of research, investigations, and trial and error, they found a solution. Then they thought about all the other poor couples facing the same defeat they did initially. So, they decided to start an organization to counsel couples to find the right home buying solutions quickly.

A young man is hired to supervise at a playground in an inner city. He noticed that the children on the basketball court are playing in badly worn tennis shoes. He decided to collect good used tennis shoes from friends and neighbors to give away to the children on the court. His story is featured in the town newspaper. Suddenly, he’s started receiving tennis shoes from across the country.

These are not actual stories, but I’m sure they are not too far from the truth. Nonprofits are started for various reasons. People see a need and fill in the gap. Or, a personal experience pushes them forward until they have no choice, but to share their outcome with others to help them to achieve a successful end. Either way, the neighborhood, community, the world at-large wins. We all benefit from trailblazers.

So, the question really shouldn’t be why, but why not start a nonprofit. What great nonprofit idea do you have that you would like to see become a reality?