7 Steps To Become a Non-profit Organization

Starting a Non-profit Organization – Sample Business Plan Template


1. Determine what type of non-profit organization you want to create
The type non-profit organization you will create depends on your motives. You will need to choose an issue that is of public importance and interest. Such issues might be related to education, politics, research, religion, health, environment, or some other commercial endeavor.
After deciding what cause your non-profit organization will be created for, you will need to state categorically why starting your organization is necessary. There are over 1.4 million non-profit organizations worldwide, and chances are that there will be other organizations in your state or country that have the same aims and objectives as yours. So, you will need to give strong reasons why your organization should be created—even if there are other organizations with similar objectives.
2. Choose a name for your non-profit organization
Just as the same applies with a business, you will need to choose a name for your non-profit organization. The name must be unique and brand-able. The law in some states and countries require that the name of a non-profit organization end with a corporate designation, such as Incorporated (Inc.), Corporation (Corp.), or Limited (Ltd.).
In addition, the name of your organization cannot contain certain designations reserved for the state, such as Federal and National, or words reserved for other businesses and brands, such as Bank and Company.
3. Apply to register the name you have chosen
Before registering the name of your non-profit organization, you will need to apply to the appropriate agency to check the availability of the name. If it is already taken, you will have to choose another name. But if the name is available, you can go ahead with the registration process, which usually attracts a fee.
During the registration process, the name will the reserved for you—so that someone else will not take it—until you have filed your Articles of Incorporation and completed the process.
4. Develop your mission statement
Since your non-profit organization is aimed at accomplishing a specific mission, you will need to put these down in words—by formulating your mission statement. The mission statement is a brief statement—in one or two sentences—that details the name of the organization, what it does, the set of people it helps, and where it is located.
Your mission statement should be compelling, since you will have it inscribed on all published materials, public relations handouts, and funding requests. It should also portray what distinguishes your organization from other like it.
Here is an example of a good mission statement: “The Hope Breast Cancer Research Center is dedicated to creating more awareness about breast cancer, providing free screening, and funding the treatment of breast cancer patients in [location]–with the aim of reducing the prevalence of breast cancer among women in [location].”
5. Write a business plan
Since a non-profit organization is another version of a business, you will need to develop a business plan and implement it to the letter.
The business plan will include details about your non-profit organization, such as the mission, objectives, required setup costs, and running costs. It will also include details about how you will source funds from donors, how you will reach out to these donors via marketing campaignsand how you will spend the funds on the cause for which they were donated.
Aside that a business plan will help steer your non-profit from set up to the realization of its objectives, it is also essential for procuring funding from donors and the government. Also, your business plan can also come in handy when you need to recruit volunteer to work with your organization. Here is a sample non-profit business plan template you can use for FREE.
6. Incorporate your non-profit organization
Aside the registration process, setting up your organization requires additional paperwork. You will need to incorporate your non-profit organization. This is similar to creating a regular corporation except that you have to take the extra steps of applying for tax-exempt status with the appropriate agency in your state or country.
7. Start fundraising
After completing all the required paperwork and your non-profit organization is officially established, you can start raising funds. Individuals and companies are usually the largest contributors to non-profit organizations, but the government offers grants and loans to support their projects.
So you need to find out individuals, organizations, government agencies, and other non-profit organizations that will most likely show interest in your cause and request for funding from them.

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