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Before You Start a Nonprofit: The Essential Steps

From Joanne Fritz,
Your Guide to Nonprofit Charitable Orgs.
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According to the National Center for Charitable Statistics, there are nearly 1.4 million nonprofit organizations in the U.S.

They range from tiny, single purpose organizations, to huge, complex institutions such as universities, foundations, and social service entities.

If you have an idea or feel called to serve the greater good of your community or even the world, begin your nonprofit journey by exploring the steps to becoming a tax-exempt nonprofit organization:

Decide if you really need to start a nonprofit.

For starters, consider whether you should pursue tax-exempt status, and explore the differences between nonprofits and businesses.

Get the facts about nonprofit incorporation.

If you decide that you do want to pursue tax-exempt status, you will need to incorporate.

Develop an understanding of nonprofit boards.

A board of directors is the core of any nonprofit organization. Learn how to find directors and how a nonprofit board works.

Develop a name for your nonprofit and write a mission statement.

Finding an appropriate name that is not being used by any other business or nonprofit is not that easy. Writing a compelling mission statement may also seem daunting. But, with some time and patience you can come up with both name and mission.

Learn about fundraising.

The key to effective fundraising is having a portfolio of sources and methods, rather than depending on only one or two.

Learn about a myriad of issues that you may face as you set up your nonprofit.

As you dig deeper into the process of creating a nonprofit you will find new problems and solutions ranging from hiring a lawyer to getting a postage permit to thanking donors.
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