7 Steps to Starting a Nonprofit: Basic Guidelines on Getting Started
By Robin LeVan
You have identified an unmet need in our society and are thinking of starting a nonprofit organization to address that need. Great! What do you do next? With over 1.54 million nonprofits in the United States alone, you will want to take a thoughtful look at your goals, your community, and to have a solid plan.
1. Establish the need.
Research other nonprofits who may be serving the need you hope to meet. If your need seems to be met by another nonprofit, consider offering them your services. If your mission seems unique, schedule exploratory calls with other like-minded organizations to learn how they did it. This will provide insight and give you a network to get started with. Explore the demographic information around the audience you hope to serve. Establish a profile of a user of your services and how you hope to engage them.
2. Articulate your mission.
Take the time to write a well-constructed mission statement and to start considering who will serve on your Board of Directors. A mission statement is, essentially, your reason for being. It articulates your core values, your aims, values, and anticipated outcomes. This is a fundamental part of your organizational structure, identity, and success, so take time to make sure it applies specifically to you.
If you have a small committee already or potential board members in mind, engaging them in this process is a great way to help you arrive at a concise vision.
This is also a good time to decide on your name. Keep in mind it should resonate with your audience, embody your mission, and be easy to spell and remember. There are legal considerations as well, so check resources to get clarification on guidelines. There are several types of nonprofits, so be sure to choose the one closest to your mission.
There are many great resources available. Your local library is a good place to start or if you have a community foundation, they may have a nonprofit start-up group.
3. Assemble a strong, committed Board and team.
Your Board of Directors needs to be diverse, reflect your community, and support the needs of your organization. They will serve as the governing body for your nonprofit for strategy, oversight, and accountability. Each state has different requirements. You will need to consider your Board job description, terms of service, etc. They will need to meet a minimum of once a year, though quarterly is recommended. Boardsource.org has useful resources here.
Along with your Board of Directors and your staff (which may only be you, initially), you will need advocates and volunteers. These are people close to your mission. Start gathering folks virtually or in an informal setting to let them know what you are planning, your need for their expertise and engagement support, and give them assignments to help in your planning process.
4. Create a detailed, fiscally responsible plan.
An effectively designed plan which is revisited frequently can help ensure success. With over 20% of nonprofits ceasing to exist after 10 years, the need for fiscal responsibility becomes paramount. Decide what the next 12 months will look like.
This can seem like a daunting process. For your initial plan, you might want to keep things somewhat simple. You will need an executive summary, a positioning statement about who you will be serving and their need, reference other providers of similar services and how you are different, cost of delivering your services, marketing, fundraising, and outreach plans, how you will evaluate success as well as important alliances you may have. Wondering how much this may cost? Here is some helpful information from Nonprofit Hub. Explore grant funding sources and have a fundraising plan.
5. File incorporation paperwork and apply for your 501(c)(3) designation.
This can be a somewhat involved process. For state filing costs and processes, visit this information from Harbor Compliance. The Council of Nonprofits is another helpful resource. The Internal Revenue Service has a FAQ for details on filing for your 501( c) (3).
6. Decide on a data system to use.
It may seem like early days to be looking at data systems, but this is, in fact, the perfect time. The moment you started planning, you started creating data. How you track, store and analyze this data will inform your work. Many nonprofits do not expect to grow as quickly as they do and find themselves with siloed systems, making it difficult to get a clear picture of how they are performing.
There are several good nonprofit management systems available. If you have your 501(c)(3), consider trying Salesforce.org’s Nonprofit Success Pack for free here. The system is free and open-sourced and offers many capabilities. This robust system allows you to see all of your major functions together in one single source of truth. It easily grows with you as your needs grow and is continually updated.
7. Create and launch a marketing plan.
You are thinking, “Really? Now?” Yes! You need to get the word out about who you are, what you do, and your impact. Work with a designer to create a logo and develop a brand statement that will help your organization build trust and credibility. Send out a press release to local media. Create a website and let the world know who you are. Get active on social media.
Located in Washington State and wondering about resources specific to your area? Here are some helpful resources:
This resource provides basic guidelines for those exploring the creation of a nonprofit. There is, of course, much more work to be done. Are you a start-up or established nonprofit looking for expert help? RavenJoy serves as technology solutions partner with the Nonprofit Accelerator, headquartered in Port Angeles, Washington. The mission of the Nonprofit Accelerator is to help nonprofits to advance their mission by collaboratively designing and implementing a success plan, with specialists in nonprofit work. Assembling a carefully curated team of subject matter experts, the Nonprofit Accelerator offers resources in human resources, fiscal management, fundraising, and marketing, website development, CRM, technical innovation, training, and legal consultation. Schedule a complimentary consultation with the Nonprofit Accelerator here.
Contributed by Robin LeVan, Nonprofit Accelerator associate, with RavenJoy