Serving the greater good can be accomplished in many ways. And most don't require setting up an IRS approved nonprofit, a risky endeavor in this economic environment, and always a complicated task that many people underestimate.
If you are thinking of starting a new nonprofit, you might want to put it off until the economic future becomes clear. Better yet, consider one of the many other ways of applying your passion for a cause such as:
1. Seek Fiscal Sponsorship.
Seek fiscal sponsorship instead of becoming a tax-exempt organization yourself. Fly under the cover of an existing nonprofit so that you can accept donations and apply for grants before being registered as a tax-exempt organization.2. Volunteer.
Volunteer for a nonprofit that is doing something similar to what you have in mind. Consider joining that group's board, or even taking a job there. Even if you later decide to start your own group, the experience with an existing nonprofit will help you hone your ideas and learn what is realistic rather than just idealistic.3. Start a Local Chapter of a National Nonprofit.
Cut through red tape by starting a local chapter of a national organization. Avoid duplication, yet bring needed services to your community.4. Organize an Unincorporated Association.
Put together an unincorporated association to fulfill your mission without seeking tax-exempt status. Not all charitable organizations are incorporated and IRS registered.5. Form or Join a Giving Circle.
Giving circles are rapidly becoming a popular way for individuals to channel and amplify their philanthropic impulses. Giving circles can be small and informal, something like a neighborly potluck, with a few people pooling their money and giving it to a chosen charity. Or they can be highly organized, require contributions of thousands of dollars, and a commitment of many years.6. Set Up a Donor-Advised Fund.
Even with relatively modest resources, you can set up a donor-advised fund which actually makes grants to charitable causes of your choice. Donor-advised funds are mini-foundations, but without the hassle.7. Become a Social Entrepreneur.
Become a social entrepreneur by forming a for-profit social venture to accomplish your social goals; or set up a small business with the goal of contributing some or all profits to a charitable cause.
A traditional nonprofit is not the only business structure that can be set up to do good. See the alternatives in Before Starting a Nonprofit, Consider Other Business Structures.
