how to start a nonprofit

Pre-planning Steps

Research and identify the cause or issue your nonprofit will address

Conduct research to identify a cause or issue that aligns with your values and interests.
Consider the impact you want to make and the specific needs within the community.
Explore existing nonprofits addressing similar causes to avoid duplication.
Evaluate the feasibility and sustainability of addressing the chosen cause or issue.

Conduct a needs assessment or feasibility study

Assess the specific needs of the target population or community you aim to serve.
Gather data and information to determine the demand for your nonprofit's services.
Identify potential barriers or challenges in addressing the identified needs.
Evaluate the resources required to meet the identified needs.

Determine if there is a demand or support for your nonprofit's mission

Conduct surveys, interviews, or focus groups to gauge community support and interest.
Engage with key stakeholders, such as community leaders or potential beneficiaries.
Analyze existing data or reports related to the issue to assess its significance.
Use the gathered information to determine if there is sufficient demand or support for your nonprofit's mission.

Identify potential collaborators, partners, or board members

Research individuals, organizations, or businesses that share similar goals or values.
Reach out to potential collaborators or partners to explore opportunities for collaboration.
Identify individuals with relevant expertise or experience who could serve as board members.
Consider diversity, skills, and connections when selecting potential collaborators, partners, or board members.

Develop a mission statement and clearly define your nonprofit's goals

Craft a concise and compelling mission statement that reflects your nonprofit's purpose.
Define specific, measurable, achievable, relevant, and time-bound (SMART) goals for your nonprofit.
Ensure the mission statement and goals align with the identified cause or issue.
Involve key stakeholders in the development process to gain their input and support.

Create a unique name for your nonprofit

Brainstorm potential names that are memorable, reflective of your mission, and available.
Check for existing trademarks or registered names to avoid legal conflicts.
Consider the name's impact on branding, marketing, and public perception.
Select a name that resonates with your target audience and conveys your nonprofit's purpose.

Research and identify any related organizations in your area

Conduct research to identify existing nonprofits or organizations addressing similar causes or issues.
Assess their programs, services, and target populations to identify opportunities for collaboration or differentiation.
Consider the potential impact of existing organizations on your nonprofit's operations and sustainability.
Identify potential areas of synergy or partnership with related organizations.

Create a list of potential funding sources

Research and identify various funding sources, such as grants, donations, sponsorships, or fundraising events.
Consider government grants, private foundations, corporate giving programs, and individual donors.
Evaluate the eligibility criteria, requirements, and application processes for each funding source.
Prioritize potential funding sources based on alignment with your nonprofit's mission and financial needs.

Set up a timeline for organizing the nonprofit

Break down the necessary steps and tasks into a timeline or project plan.
Identify key milestones and deadlines, such as registering as a nonprofit, developing bylaws, or recruiting board members.
Allocate realistic timeframes for each task, considering dependencies and available resources.
Regularly review and adjust the timeline as needed to ensure progress and accountability.

Draft a budget for the start-up costs

Determine the necessary expenses for establishing and launching your nonprofit.
Include costs such as legal fees, office space, equipment, marketing materials, and initial staffing.
Research and estimate potential income sources, such as grants, donations, or fundraising activities.
Develop a detailed budget that balances income and expenses, ensuring financial sustainability.

Develop a plan for marketing and outreach

Identify target audiences and develop strategies to reach and engage them.
Create a branding and marketing plan that aligns with your nonprofit's mission and goals.
Utilize various channels, such as social media, website, events, and partnerships, to raise awareness.
Consider the resources and budget required for effective marketing and outreach efforts.

Identify resources needed to launch the nonprofit

Assess the human, financial, and material resources required to launch and operate your nonprofit.
Consider staffing needs, volunteers, office space, technology, and equipment.
Identify potential sources of in-kind donations or partnerships to acquire necessary resources.
Develop a plan to secure the identified resources within the established timeline.

Legal and Administrative Steps

Research and understand the legal requirements for starting a nonprofit in your country or state

Consult with an attorney or nonprofit resource center for guidance
Review the nonprofit laws and regulations applicable to your jurisdiction

Determine the appropriate legal structure for your nonprofit (e.g., charitable trust, corporation, association)

Evaluate the benefits and limitations of each legal structure option
Consider seeking legal advice to make an informed decision

Contact the designated agency responsible for nonprofit registrations in your jurisdiction
Follow their registration process and submit the required forms and documentation

Apply for tax-exempt status (e.g., 501(c)(3) in the United States)

Gather the necessary documents and information required for the application
Complete and submit the tax-exempt application to the appropriate tax authority

Develop bylaws to govern your nonprofit's operations

Define the structure, purpose, and rules for your nonprofit in a written document
Include provisions regarding membership, board composition, meetings, and decision-making processes

Establish a board of directors and hold an initial meeting

Identify individuals who are committed to your nonprofit's mission and can fulfill the legal requirements of board membership
Schedule and conduct an initial board meeting to appoint officers and establish governance procedures

Obtain any necessary permits or licenses

Identify the permits or licenses required for your nonprofit's activities
Research the application process and submit the necessary forms and fees

Create a budget and establish a financial management system

Develop a comprehensive budget that outlines your nonprofit's expected income and expenses
Implement a financial management system that includes bookkeeping, accounting, and reporting procedures

Develop conflict of interest and whistleblower policies

Draft policies that address conflicts of interest and provide a mechanism for reporting wrongdoing
Ensure the policies comply with legal requirements and promote transparency and accountability

Establish a system for record keeping

Designate a method for organizing and storing important documents and records
Implement procedures for maintaining accurate and up-to-date records

Create a disaster recovery and business continuity plan

Identify potential risks and develop strategies to mitigate the impact of disasters
Outline procedures to ensure the continuity of your nonprofit's operations in case of emergencies

Choose a registered agent and registered office

Select an individual or an organization to serve as the registered agent for your nonprofit
Designate a physical address as the registered office where official documents can be delivered

Purchase insurance for the nonprofit's activities

Assess the insurance needs of your nonprofit based on its activities and potential risks
Research insurance providers and policies that meet your organization's requirements

Establish a system for tracking donations

Implement a process to record and acknowledge donations received by your nonprofit
Consider using donor management software or databases to track and manage donor information

Draft and file any necessary documents with the state or federal government

Identify the specific documents required by the government for your nonprofit
Prepare the documents according to the guidelines and submit them within the specified timeframe

Operational Steps

Develop a strategic plan outlining the objectives and activities of your nonprofit

Determine the long-term goals and mission of your nonprofit
Identify the specific objectives and activities that will help achieve those goals
Outline a timeline and milestones for implementing the strategic plan

Create a fundraising plan and explore various fundraising strategies

Research different fundraising methods such as events, grants, and individual donations
Develop a budget for fundraising expenses and set fundraising goals
Create a plan for donor cultivation and stewardship

Establish a strong online presence through a website and social media accounts

Design and create a user-friendly website that showcases your nonprofit's mission and work
Set up social media accounts on platforms that are relevant to your target audience
Regularly update your website and social media with engaging content and news about your nonprofit

Develop a volunteer recruitment and management plan

Identify the specific roles and responsibilities needed for your nonprofit
Create a volunteer recruitment strategy to attract potential volunteers
Establish a system for volunteer onboarding, training, and recognition

Set up an accounting system to track income and expenses

Choose an accounting software that suits your nonprofit's needs
Set up a chart of accounts to categorize income and expenses
Regularly record and reconcile financial transactions

Create policies and procedures for your nonprofit's day-to-day operations

Develop an employee handbook or volunteer manual that outlines expectations and procedures
Establish policies for areas such as conflict of interest, financial management, and data privacy
Regularly review and update policies to ensure compliance and effectiveness

Develop a marketing and communication plan to raise awareness about your nonprofit's mission

Identify target audiences and develop key messages that resonate with them
Select marketing channels such as email newsletters, press releases, and social media
Create a content calendar and schedule regular communications to engage with stakeholders

Consider applying for grants or seeking partnerships with other organizations

Research grant opportunities that align with your nonprofit's mission and programs
Prepare grant proposals that clearly outline your goals, activities, and expected outcomes
Identify potential partner organizations that share similar goals and explore collaboration opportunities

Identify and secure necessary resources to carry out activities

Assess the resources needed for your nonprofit's activities, such as staff, volunteers, and materials
Develop a plan to acquire and allocate resources effectively
Explore partnerships, sponsorships, and in-kind donations to supplement your resources

Create a program evaluation plan to ensure that the nonprofit is achieving its goals

Establish measurable goals and outcomes for each program or project
Develop evaluation methods such as surveys, interviews, and data analysis
Regularly assess and analyze program data to track progress and make improvements

Develop a system for tracking donors and their contributions

Implement a donor management software to track donor information, communication, and giving history
Create a process for acknowledging and thanking donors for their contributions
Regularly update and maintain donor records

Establish a system to track and report progress towards program goals

Set up a monitoring and evaluation system to track program activities, outputs, and outcomes
Develop reporting templates and establish reporting timelines
Regularly analyze and share progress reports with stakeholders

Identify and secure necessary resources to carry out activities

Assess the resources needed for your nonprofit's activities, such as staff, volunteers, and materials
Develop a plan to acquire and allocate resources effectively
Explore partnerships, sponsorships, and in-kind donations to supplement your resources

Human Resources and Governance Steps

Develop a job description and hire key staff members (if needed)

Outline the responsibilities and qualifications for each position
Advertise job openings through various channels
Review resumes and conduct interviews
Select and hire qualified candidates

Establish a performance evaluation system for employees

Determine the evaluation criteria and process
Set performance goals and expectations
Conduct regular performance reviews
Provide feedback and identify areas for improvement

Develop a board orientation and training program

Create an orientation manual for new board members
Provide training on the organization's mission, vision, and values
Educate board members on their roles and responsibilities
Offer ongoing training and development opportunities

Ensure compliance with applicable employment laws and regulations

Research and understand relevant employment laws
Develop policies and procedures to ensure compliance
Train staff and board members on employment laws
Regularly review and update policies as needed

Establish a conflict of interest policy and a code of ethics

Develop a written conflict of interest policy
Require board members and staff to disclose potential conflicts
Create a code of ethics outlining expected behavior
Educate all stakeholders on the policies and code of ethics

Develop a succession plan for key leadership positions

Identify key leadership positions within the organization
Identify potential successors for each position
Create a plan for transitioning leadership roles
Provide training and development opportunities for potential successors

Draft a handbook outlining employee policies and procedures

Outline the organization's policies and procedures
Include information on work hours, leave, and disciplinary measures
Provide employees with a copy of the handbook
Regularly review and update the handbook

Create a system for employee compensation and benefits

Determine the organization's compensation philosophy
Develop a salary structure and benefits package
Communicate compensation and benefits information to employees
Regularly review and adjust compensation and benefits as needed

Develop a communication strategy for engaging employees

Identify communication channels and tools
Create a plan for regular employee communication
Encourage two-way communication and feedback
Promote transparency and open dialogue

Set up a system to monitor employee engagement

Implement employee engagement surveys or assessments
Track and analyze employee engagement data
Identify areas for improvement and develop action plans
Monitor progress and adjust strategies as needed

Establish a system of accountability and rewards for employees

Set clear performance expectations and goals
Create a system for tracking and measuring performance
Reward and recognize employees for meeting or exceeding expectations
Address performance issues promptly and fairly

Develop a system for employee feedback and input

Create channels for employees to provide feedback and suggestions
Encourage open and honest communication
Regularly collect and review employee feedback
Use feedback to make improvements and address concerns

Create a system for employee recognition and rewards

Establish a formal employee recognition program
Implement a system for acknowledging and rewarding employee achievements
Promote a culture of appreciation and recognition
Regularly review and update the recognition program

Financial and Reporting Steps

Set up a bookkeeping system to track income, expenses, and donations

Choose a bookkeeping software or system that suits your nonprofit's needs
Set up separate accounts or categories for income, expenses, and donations
Record all financial transactions accurately and regularly
Keep all receipts and financial documents organized

Establish financial controls and policies to safeguard your nonprofit's assets

Implement internal controls to prevent fraud and ensure financial accuracy
Create policies for handling cash, checks, and other forms of payment
Designate individuals responsible for financial oversight and review
Establish procedures for approving and documenting expenses

Create a system for financial reporting and transparency

Generate regular financial reports that provide a clear overview of your nonprofit's financial status
Make these reports easily accessible to board members and other stakeholders
Include detailed information on income, expenses, and donations in your reports
Ensure transparency by clearly explaining financial decisions and activities

File annual reports and tax returns as required by law

Research the specific reporting and filing requirements for nonprofits in your jurisdiction
Prepare the necessary documents and information for annual reports and tax returns
Submit these reports and returns to the appropriate government agencies by the specified deadlines
Keep copies of all filed reports and returns for your records

Comply with any grant reporting requirements

Review the terms and conditions of each grant received
Identify the reporting obligations and deadlines outlined in the grant agreements
Gather the necessary information and data for grant reports
Submit these reports to the grantor as required

Consider conducting an annual audit or financial review

Evaluate your nonprofit's financial situation and resources
Determine if an external audit or financial review is necessary or beneficial
Engage a qualified auditor or financial professional to conduct the audit or review
Review the findings and recommendations from the audit or review

Remember, this checklist provides a general overview, and the specific requirements may vary depending on your location and the type of nonprofit you want to start. It is advisable to consult with legal and financial professionals for guidance throughout the process.

Create a budget and plan for financial sustainability

Estimate your nonprofit's income and expenses for a specific period
Outline your financial goals and objectives
Allocate funds to different programs and activities based on priorities
Regularly monitor and adjust your budget to ensure financial sustainability

Set up a system for tracking donations and issuing receipts

Implement a donor management system or database to track donations
Record donor information, contribution amounts, and dates
Issue timely and accurate donation receipts to donors
Ensure compliance with tax regulations regarding donation receipts

Develop a plan for fundraising activities and campaigns

Identify potential fundraising strategies and campaigns that align with your nonprofit's mission
Set fundraising goals and targets
Create a timeline and action plan for each fundraising activity
Evaluate the effectiveness of your fundraising efforts and make adjustments as needed

Research and apply for grants and other sources of funding

Research grant opportunities and funding sources relevant to your nonprofit's mission and programs
Review eligibility criteria and application requirements for each funding opportunity
Prepare and submit high-quality grant proposals and applications
Follow up on submitted applications and track the progress of your funding requests

Establish banking accounts for your nonprofit

Choose a reputable bank or financial institution for your nonprofit's banking needs
Gather the necessary documents and information required to open a nonprofit bank account
Complete the account opening process and obtain the required account documentation
Ensure that appropriate individuals have authorized access to the nonprofit's bank accounts

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