To maximize your chances of success, consider the following questions:<\/p>\n\n\n\n
Is There a Need?<\/h3>\n\n\n\n
Do you have proof that your nonprofit will fill an unmet need in your community? Gathering support, receiving grants, and getting donations will become a whole lot easier if you have strong numbers to back up your idea.<\/p>\n\n\n\n
If you can\u2019t find tangible proof, consider conducting your own survey. Identify your target demographic and ask them whether or not they think they\u2019d benefit from the programs and services your nonprofit would offer.<\/p>\n\n\n\n
Are There Any Existing Organizations That Already Address This Need?<\/h3>\n\n\n\n
Are any other organizations already doing what you\u2019re planning on doing? How would your nonprofit add extra value to your community?<\/p>\n\n\n\n
If two nonprofits have exactly the same mission, they would end up competing against each other for grants and donor support. Neither one of them would generate enough revenue to make a substantial impact.<\/p>\n\n\n\n
The National Council of Nonprofits offers a locator tool <\/a>to find nonprofit organizations in the United States. Before you start your nonprofit, take a look and make sure your efforts won\u2019t be redundant.<\/p>\n\n\n\n If you\u2019ve identified that starting a nonprofit is not the best course of action at this time, there are still plenty of ways you can help advance a cause you care about. Here are just a few ideas:<\/p>\n\n\n\n If you do believe there\u2019s a real need in your community and your organization would be the only one to address it, also consider the following:<\/p>\n\n\n\n Here are a few of the startup costs you can expect:<\/p>\n\n\n\n Now that you\u2019ve done your research and know exactly what to expect, it’s time to build a strong foundation. This includes deciding what kind of founder you\u2019ll be, identifying who else will be involved, and creating a plan for starting your nonprofit.<\/p>\n\n\n\n According to leadership expert Brian Tracey, who’s worked with more than 1,000 organizations, there are five traits<\/a> that all successful founders possess:<\/p>\n\n\n\n Starting a nonprofit is a huge undertaking, and you can\u2019t do it alone.<\/p>\n\n\n\n Make a list of roles you\u2019ll need to fill \u2014 these will be board members, volunteers, and maybe even a few staff members. Make sure to check your local requirements for how many board members you need to recruit, as this can depend on where you live.<\/p>\n\n\n\n Also think about people you\u2019ll be able to go to for support. They can include:<\/p>\n\n\n\n Create a checklist of everything you\u2019ll need to do to start your nonprofit. You can use the headings of this article as a starting point and add more details as necessary.<\/p>\n\n\n\n Be sure to also do some research into what forms you\u2019ll need to fill out, as required by your state and country. If you live in the U.S., you\u2019ll need to:<\/p>\n\n\n\n Individual state requirements vary, so if possible, consult a legal professional to make sure you don\u2019t miss anything.<\/p>\n\n\n\n The best nonprofit names are easy to remember, explain what they do, and sound appealing.<\/p>\n\n\n\n If you haven\u2019t come up with a name yet, Nonprofit Ally has a number of tips on giving your nonprofit the best name<\/a>. They say that the best nonprofit names answer three questions:<\/p>\n\n\n\n Once you\u2019ve picked a name, make sure another organization doesn\u2019t have the same name as you with a quick Google search. Then, you\u2019ll need to check if it\u2019s available with the Secretary of State in your State. Here is a map<\/a> with links to each Secretary of State where you can check.<\/p>\n\n\n\n Read More:<\/strong><\/em> 5 Things to Consider When Naming Your Nonprofit<\/em><\/a><\/p>\n\n\n\n Your nonprofit\u2019s mission statement is a brief description of what you do and why you do it. It plays an important role in your organization\u2019s success because it tells people why your work is worth supporting.<\/p>\n\n\n\n Here are a few tips for crafting the perfect mission statement:<\/p>\n\n\n\n A vision statement is a description of your end-goal\u2014what do you want your community or the world to look like after your work is done? It should act as a motivator and a driving force behind your day-to-day operations.<\/p>\n\n\n\n Your values are a set of principles that everyone at your organization\u2014staff, volunteers, board members, and supporters\u2014will follow. They’ll be used to guide every single decision and action at every level and in every corner of your organization.<\/p>\n\n\n\n A business plan is the blueprint for how your nonprofit will run and how you\u2019ll achieve your goals. It’s helpful for your planning purposes, but also anyone who\u2019s considering supporting your organization. They could request to see this document before making their decision.<\/p>\n\n\n\n Let\u2019s briefly go over what to include in your business plan.<\/p>\n\n\n\n An executive summary is a short overview of your business plan. When writing yours, think of it as an elevator pitch<\/a>. If your reader only has time to read this section, what would you want them to know?<\/p>\n\n\n\n Be sure to include your mission, vision, and values, a brief summary of your goals, and how you\u2019re planning to achieve them.<\/p>\n\n\n\n Describe in detail what need you\u2019ll be addressing in your community, whom you\u2019ll be serving, and what value you\u2019ll provide them with. For many nonprofits this includes things like programs and services, membership benefits, resources, and events.<\/p>\n\n\n\n Explain what the market landscape currently looks like and include a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) that will help you determine how to set your organization up for success.<\/p>\n\n\n\n Develop a strong marketing<\/a> plan that will help you spread the word about your nonprofit. The plan should answer the following questions:<\/p>\n\n\n\n Read More:<\/strong><\/em> Follow These 7 Steps to Create a Nonprofit Marketing Plan<\/em><\/a><\/p>\n\n\n\n Your operational plan will guide your nonprofit\u2019s day-to-day functions. It should answer the following:<\/p>\n\n\n\n Your impact plan is all about the positive change your nonprofit will create. It should answer questions like:<\/p>\n\n\n\n Your financial plan will help you get donations, apply for grants, and maintain a healthy budget for your nonprofit\u2019s operations. If possible, recruit the help of someone with a background in accounting to put it together, but if not, The Wallace Foundation has some excellent resources and calculators to get you started<\/a>.<\/p>\n\n\n\n According to The Nonprofit Answer Guide, your board should be made up of individuals<\/a> who have expertise and resources in different areas. A good board should be evenly split between:<\/p>\n\n\n\n Start your recruitment process by identifying key roles and drafting job descriptions. These should include:<\/p>\n\n\n\n This is also a good time to note that board members are typically not paid, and are often expected to contribute financially to the organization. When writing up your job description, it’s a good idea to mention this.<\/p>\n\n\n\n Once you have full job descriptions, it\u2019s time to find the best candidates. Most nonprofit founders look for candidates in their personal connections and recommendations, since these people usually already share their interests and values.<\/p>\n\n\n\n If you need help finding potential members for your board<\/a>, there are a number of great resources, including:<\/p>\n\n\n\n To help you out during the interview process, here are five necessary questions developed by Joan Garry, the \u201cDear Abby\u201d of nonprofit leadership<\/a> to ask your candidates:<\/p>\n\n\n\n Once you\u2019ve selected your board members, have them sign a Board Member Contract to officiate their role. Here\u2019s a great Board Member Contract template you can use<\/a>.<\/p>\n\n\n\n The next step to ensure success is to give your board members the training and tools to let them hit the ground running. A comprehensive orientation program will do just that.<\/p>\n\n\n\n Read more: Nonprofit Boards: 7 Key Responsibilities for Good Governance<\/strong><\/a><\/p>\n\n\n\n Rachel Muir<\/a>, a seasoned nonprofit founder, suggests four critical steps to orient your members in the most effective way:<\/p>\n\n\n\n Read More:<\/strong> The Complete Guide to Building a Nonprofit Board<\/a><\/em><\/p>\n\n\n\n You’ve already selected a name for your nonprofit, but there’s more that goes into your identity and brand. Here’s a quick checklist you can refer to when building your nonprofit identity:<\/p>\n\n\n\n Here’s a great example of a cohesive brand guideline by the American Red Cross<\/a>. It covers everything needed for presenting your nonprofit to the world, from colors and fonts to use cases and tone of voice.<\/p>\n\n\n\n Utilizing software and technology will make the branding process much easier for your nonprofit. HEre’s a couple of tools to check out for creating your nonprofit’s logo, graphics, color story and overall visual identity.<\/p>\n\n\n\n Very soon you’ll be producing print and digital assets to spread the word about your nonprofit \u2014 a cohesive brand will help you stand out and be easily recognizable and memorable.<\/p>\n\n\n\n Read more: The Ultimate Guide to Nonprofit Branding<\/a><\/strong><\/p>\n\n\n\n Now, it\u2019s time to think about how your organization will generate revenue<\/a>. Most nonprofits do this in three ways: through providing value, fundraising, and government grants.<\/p>\n\n\n\n This category includes things like membership dues<\/a>, event fees, and selling merchandise. People pay a fee in return for membership benefits<\/a>, attending an event, or getting access to a publication, for example. This is similar to how a for-profit business would generate revenue, but in this case, the profits would go directly towards advancing your nonprofit\u2019s mission.<\/p>\n\n\n\n Read More: <\/strong><\/em>A Guide to Building Successful Nonprofit Membership Programs <\/a><\/p>\n\n\n\n Fundraising includes soliciting donations from individual donors, corporate sponsors, and organizing fundraising events.<\/p>\n\n\n\n Before you can accept donations or engage in fundraising activities, many states require you to complete a Charitable Solicitation Registration<\/a>. You can do this in tandem with incorporating your nonprofit. Some states even require you to register for \u201cGames of Chance<\/a>\u201d like raffles and 50\/50 draws, whereas in other states, these activities are actually illegal. To find out your state\u2019s regulations, and to register, select your state from this map<\/a>.<\/p>\n\n\n\n The Nonprofit Council has also put together a great article on Ethical Fundraising<\/a> to help guide you when it comes to soliciting donations.<\/p>\n\n\n\n Read More:<\/strong><\/em> 200+ Amazing Fundraising Ideas Any Organization Can Try Today<\/em><\/a><\/p>\n\n\n\n Here are some helpful places to begin your search for grants relevant to your nonprofit:<\/p>\n\n\n\n To help you get started with an application, the United States Government<\/a> has a great guide on how to determine your eligibility, application instructions, and even how to avoid grant scams. Or, if you enjoy webinars, Charity How To has a free webinar on how to write your first grant<\/a>.<\/p>\n\n\n\n Read More:<\/strong><\/em> How to Start Grant Writing (+ Templates)<\/em><\/a><\/p>\n\n\n\n Here are the steps to incorporating your nonprofit:<\/p>\n\n\n\n 1. Choose a business name<\/strong><\/p>\n\n\n\n 2. Appoint a board of directors<\/strong><\/p>\n\n\n\n 3. Decide on a legal structure: <\/strong>Choose whether your organization will be a trust<\/a>, corporation<\/a>, or association<\/a>.<\/p>\n\n\n\n 4. File your incorporation paperwork: <\/strong>Regulations differ from State to State. Check with the National Association of State Charity Officials (NASCO)<\/a> for your state. If you plan on soliciting donations from more than one State, you will have to register there too. Generally you will have to register:<\/p>\n\n\n\n 5. Get an Employer Identification Number (EIN)<\/strong><\/p>\n\n\n\n Just like any business, your nonprofit needs to get an EIN, or Employer Identification Number. You\u2019ll need it to hire staff, open a bank account in your organization’s name, and fill out many of the necessary registration forms that your local government requires. You can think of it as being like a Social Security Number, but for your nonprofit.<\/p>\n\n\n\n To apply for an EIN, you can visit the IRS website and complete it online<\/a>, or download the form they provide and mail it in.<\/p>\n\n\n\n All you need to complete it is the physical mailing address of your nonprofit, its legal name, and your SSN.<\/p>\n\n\n\n Read More:<\/strong><\/em> 5 Nonprofit Fundraising Laws You Should Know About<\/em><\/a><\/p>\n\n\n\n One of the main benefits of incorporating a nonprofit and starting a 501c3 is tax-exempt status. This means that your organization doesn’t pay any tax to the IRS.<\/p>\n\n\n\n There are 29 types of nonprofit organizations that can file for tax-exemption<\/a> under section 501(c) of the Internal Revenue Code. The most common of these is the 501(c)(3), which includes all charitable, religious, scientific, and literary organizations. Other types of tax-exempt nonprofits fall under different 501(c) codes such as:<\/p>\n\n\n\n If your nonprofit identifies with another type of organization, you can view the whole list here<\/a>.<\/p>\n\n\n\n In order to receive tax-exemption, you’ll need to register with the IRS as your appropriate 501(c) organization. This involves filling out Form 1023, which the IRS estimates can take about 90 hours for record-keeping requirements. There’s also a Form 1023-EZ, which is an expedited form. You can find out if you’re eligible to fill out a 1023-EZ here<\/a>.<\/p>\n\n\n\n If you need help, you can phone the IRS Tax Exempt and Government Entities Hotline<\/a>.<\/p>\n\n\n\n The application process can be lengthy (anywhere from 3-12 months to receive a decision), so start as early as possible. You should also familiarize yourself with all related IRS resources, which offer more details on completing your application:<\/p>\n\n\n\n It\u2019s also important to note that there are fees for filing for tax-exemption<\/a>:<\/p>\n\n\n\n The final step to receiving tax-exempt status for your nonprofit is to register with your state. This is usually accomplished through the state tax commission, but the IRS State Links for Exemption<\/a> page will help you find the correct office, filing procedures and annual reporting requirements in every state.<\/p>\n\n\n\n You\u2019ve done all the planning, incorporated your nonprofit, and applied for tax-exempt status. Now, there\u2019s even more work to be done. Now is the time to figure out your office space and recruit staff members.<\/p>\n\n\n\n This article<\/a> on how to set up your nonprofit space on a tight budget is a great place to start.<\/p>\n\n\n\n When it comes to hiring staff, many small nonprofits start with only one part-time or full-time staff member until they reach a point where they need extra help to grow larger.<\/p>\n\n\n\n If you\u2019re not sure how many staff members you\u2019ll need, here are some common nonprofit staff roles and what type of organizations they\u2019re typically found in.<\/p>\n\n\n\n Hiring staff members is an involved process that requires a few extra steps. Don\u2019t forget to:<\/p>\n\n\n\n It\u2019s possible to use software like an army of helpful robots to do all the administrative work for your organization so you can focus on the activities that will actually create more member value and help you grow! You can set up software to automatically:<\/p>\n\n\n\n When it comes to choosing the right software tools, you have two options:<\/p>\n\n\n\nCan You Consider Alternatives to Starting Your Nonprofit?<\/h3>\n\n\n\n
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Are There Other Considerations to Keep In Mind?<\/h3>\n\n\n\n
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What Startup Costs Do You Need to Consider?<\/h3>\n\n\n\n
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Step 2: Build Your Nonprofit’s Foundation – the Who, the What, the Why<\/h2>\n\n\n\n
What Kind of Founder Will You Be?<\/h3>\n\n\n\n
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Who Will Be Involved In Your Nonprofit?<\/h3>\n\n\n\n
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What Needs To Be Done?<\/h3>\n\n\n\n
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Choose Your Name<\/h3>\n\n\n\n
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Create a Mission Statement<\/h3>\n\n\n\n
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Create Vision and Organizational Values<\/h3>\n\n\n\n
Step 3: Create a Business Plan<\/h2>\n\n\n\n
Executive Summary<\/h3>\n\n\n\n
Programs and Services<\/h3>\n\n\n\n
Market Analysis<\/h3>\n\n\n\n
Marketing Plan<\/h3>\n\n\n\n
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Operational Plan<\/h3>\n\n\n\n
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Impact Plan<\/h3>\n\n\n\n
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Financial Plan<\/h3>\n\n\n\n
Step 4: Recruit Your Board of Directors<\/h2>\n\n\n\n
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Step 5: Build Your Nonprofit Brand Identity and Visual Style<\/h2>\n\n\n\n
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Example of Nonprofit Brand Guidelines<\/h3>\n\n\n\n
![\"American](\"https:\/\/www.wildapricot.com\/wp-content\/uploads\/2025\/05\/american-red-cross-brand-657x1024.png\")
<\/a><\/figure>\n\n\n\nTools to Assist Nonprofit Branding<\/h3>\n\n\n\n
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Step 6: Funding and Revenue<\/h2>\n\n\n\n
1. Providing Value<\/h3>\n\n\n\n
2. Fundraising<\/h3>\n\n\n\n
3. Government Grants<\/h3>\n\n\n\n
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Step 7: File Articles of Incorporation for Your Nonprofit<\/h2>\n\n\n\n
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Step 8: Apply for Tax Exempt Status<\/h2>\n\n\n\n
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![\"apply](\"https:\/\/lh3.googleusercontent.com\/1PRRISItwFRioC_np3iHIwDjPbqIns39i2K2LteexEF-JFxrIF07PjC5NJeea1PmpSMrnWbotX3MJe_amMZsojbT3aYqgTBw5mqd7R1D8pzZYIoOVuD_9lWz54QpXjGhg3-GgRw7\" "\\"apply")
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Step 9: Hire Staff Members<\/h2>\n\n\n\n
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Step 10: Choose the Right Software Tools<\/h2>\n\n\n\n
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