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This section of the LaunchX Business Startup library contains helpful articles and reference information to assist you in starting and running your nonprofit organization.
While there are dozens of steps to get from idea to launch when starting a nonprofit organization, these are the first five steps you should take to start a new nonprofit organization. Read more about the first five steps to starting a nonprofit...
Fiscal sponsorship is the practice of existing nonprofit organizations providing their legal and tax-exempt status to another group that engages in a project or activity related to the sponsoring groups mission. A fiscal sponsorship can be a great way to make a difference without starting a separate nonprofit immediately. Read more about using fiscal sponsorship as an alternative to launching a separate nonprofit...
Starting a nonprofit can be a great opportunity to do good, leave a legacy, and take control of your own work life. Before you move forward with your idea, consider these five facts that might change your mind about starting a nonprofit. Read more about five facts that might change your mind about starting a nonprofit...
Many people decide to start a nonprofit based on a misguided motivation. If one of these is your reason for starting a nonprofit, consider these alternatives. Read more about five reasons NOT to start a nonprofit...
People who selflessly commit their worklife to the nonprofit world will tell you that there are some harsh realities that come along with doing good, especially for the founders of nonprofit organizations. Here are some things you should know if you are thinking about starting a new nonprofit, and a bit of advice if you will be going ahead with your plans! Read more about some harsh realities when starting a nonprofit...
Simply implementing basic business concepts and an entrepreneurial perspective can alter the future of just about any nonprofit, refocusing the efforts on making a real impact, rather than mere survival. Read more about how entrepreneurship will affect nonprofit organizations...
Fiscal sponsorship can be an excellent option for getting through a short-term project or getting a new nonprofit off the ground. There are a number of models of fiscal sponsorship available, and one is likely to fit the needs of your short-term project or new nonprofit organization. Read more about the different models of fiscal sponsorship for nonprofit organizations...
Obtaining tax-exempt status for your nonprofit organization is a separate process from establishing the nonprofit organization itself. Separate federal and state tax exemptions are required. Be sure you've covered all the bases when starting a nonprofit organization. Read more about obtaining 501(c)(3) status for your nonprofit organization...
The one-third support test established by the IRS for nonprofit organizations is an opportunity to qualify your organization as a public charity, rather than a private foundation. Understanding the criteria to meet the one-third support test is the first step in achieving public charity status for your nonprofit organization. Read more about the one-third support test for nonprofit organizations...
Fiscal sponsorship can be an excellent opportunity for certain situations. Before you approach an organization seeking fiscal sponsorship, you need to be aware of these problems that can arise and how to avoid them. Read more about common problems with fiscal sponsorship of nonprofit organizations and how to avoid them...
Social entrepreneurs, those who combine entrepreneurial skills with social responsibility, are bringing a business-based sensibility to the nonprofit sector. This is reflected in their expectations of nonprofit organizations as well as their approach when they start a nonprofit. Read more about how social entrepreneurs are changing nonprofit organizations...
There are many opportunities in the nonprofit realm right now, with lots of problems in desperate need of attention. Here are five areas that contain the best nonprofits to start in 2010. Read more about the best nonprofit organizations to start in 2010...
Starting a nonprofit organization can be an excellent way to make a difference, meet an unmet need in society, or contribute to solving a specific problem. Before you launch your nonprofit, consider these three things you should know. Read more about three critical things to know before starting a nonprofit...
Perhaps the single largest concern for a founder of a nonprofit organization is where the money will come from to fund the startup, the programs, and the ongoing operations of the organization. Because a nonprofit organization typically raises almost half its funds from non-program related services, developing a financial sustainability plan is critical. Read more about finding funding for your nonprofit organization...
Many nonprofit organizations are started based on a passion of the founder to solve a problem or right a wrong. In order to successfully fulfill their mission, however, nonprofit organizations must pay attention to the fundamentals of running a business, including leadership, financial management, and strategic planning. Read more about how business basics are critical to starting a nonprofit organization successfully...
Many nonprofits have found using the internet has substantially increased the donations they receive. Use these five key factors to optimize your nonprofit organization's website to encourage donations to your cause. Read more about increasing donations through your nonprofit organization’s website...
Promoting your nonprofit website is essential to getting all you can out of your internet presence. Use these five methods to increase traffic to your nonprofit organization's website. Read more about five easy ways to increase traffic to your nonprofit’s website...
It is as true for nonprofits as it is for for-profit businesses that an internet presence is a necessity, not a luxury. Consider your nonprofit organization's objectives and strategy when you are developing your web presence and your organization will reap the benefits of being online. Read more about why having an internet presence is a key to your nonprofit’s sustainabillity...
You must have a passion for your mission in order to start a nonprofit organization. However, passion alone is not sufficient to guarantee the success when starting a nonprofit. Couple your passion with skills, knowledge, and hard work to sustain the organization for the long term. Read more and find out if passion alone is enough to start a nonprofit organization...
If you are thinking of starting a nonprofit organization, consider these myths and red flags that indicate you may be better served with a for-profit company. Nonprofits have a very clear role in society and the economy. Be sure your idea is consistent with that role. Read more about myths and red flags that can derail your efforts to start a successful nonprofit organization...
When determining whether to establish your venture as a nonprofit organization, it is important to understand what nonprofit status will mean for your organization and for you personally. Most of the effects of nonprofit status are related to the tax obligations of the organization. Read more about whether having nonprofit status will be right for your organization...
Managing the money is important to the sustainability of a nonprofit organization. Take note of these five mistakes that nonprofits make and plan to avoid them in your organization. Read more about the top five financial mistakes that nonprofiits make...
Many founders of nonprofit organizations don't see themselves as entrepreneurs, the reality is that they are every bit as much an entrepreneur as the person starting a for profit business. Nonprofit founders rely on the same initiative, risk management, and motivation to start their organizations. Read more about using entrepreneurial traits to make your nonprofit organization a success...
When filing for IRS 501(c)(3) status with the IRS, one distinction that may be unclear is the difference between a private foundation and a public charity. The preferred status for most nonprofit organizations is the public charity, however not all organizations qualify. Read more about the distinctions between private foundation and public charity...
Social entrepreneurs include any innovative, independent business owner who uses entrepreneurial skills to contribute to the betterment of society, whether through a nonprofit organization or a for-profit business. Deciding which route to take is a decision social entrepreneurs must make in the planning for their new venture. Read more about the choices that social entrepreneurs make...
Many entrepreneurs look to starting a nonprofit as a way to accomplish two goals simultaneously -- creating an income for themselves and contributing to the greater good. The reality is that if these are your goals, you are likely to be better served by starting a business and either contributing to or starting a nonprofit separately. Read more about why you shouldn’t start a nonprofit just to create a job for yourself...
If you are starting a nonprofit organization and expect to apply for tax-exempt status from the IRS under 501(c)(3), then take these five factors into consideration as you are planning your organization. Read more about the requirements to become an IRS 501(c)(3) tax-exempt organization...
There are many great reasons for starting a nonprofit organization, but personal financial gain cannot be one of them. Due to both the nature of nonprofit organizations and IRS rules, a nonprofit organization cannot provide personal profits to an individual or business closely related to the nonprofit. Read more about starting a nonprofit organization...
For recognition as a 501(c)(3) organization by the IRS, you must have properly stated the purpose of your organization. This can be tricky for youth athletics, so follow these helpful hints to get it right. S Read more about stating your purpose for the IRS when starting a youth athletic nonprofit...
Nonprofit organizations can be either all-volunteer or have some paid staff. The decision on whether to have paid staff can have consequences for fundraising, sustainability, and longevity of the new nonprofit organization. Read more about the decision to be an all-volunteer nonprofit organization...
Social entrepreneurs often believe that because they want to do good, they must be registered as a nonprofit organization. The rules to qualify as a nonprofit significantly limit the types of organizations that qualify, and many social entrepreneurs will find that starting a business is the right choice. Read more about deciding whether to start a business or nonprofit organization...
If your nonprofit organization wants to make it possible for your donors to claim their contribution to you as a deduction on their personal taxes, you will need to obtain designation by the Federal IRS as a 501(c)(3) organization. The basics of 501(c)(3) designation are to establish your nonprofit corporation, file the application, and keep your organization moving forward during the review process. Read more about the basics of IRS 501(c)(3) for Nonprofit Organizations...
The Board of Directors of your nonprofit is very similar to the Board of Directors of a for-profit corporation. However, there are a few significant differences that you should be aware of when forming your nonprofit organization. Read more about your Nonprofit Board of Directors...
While nonprofit organizations are not required to be incorporated, the benefits of incorporation are numerous and worth the time involved in to incorporate for most nonprofit organizations. Read more about the benefits of incorporating your nonprofit organization...
Once you have your nonprofit organization launched, you will need to decide what role you, as the founder, will play in the organization. Will you join the board of directors or will you fill the executive director role. Consider these factors when making your decision. Read more about the founder’s role in a nonprofit organization...
While most nonprofits are organized as corporations, it is not always necessary to do so. It is important to understand and evaluate the relevancy of the benefits and limitations of choosing corporate status before committing the time, effort, and money to developing your nonprofit as a corporation. Read more about whether you should incorporate your nonprofit organization...
Launching a nonprofit is very different from running your own for-profit venture. Nonprofit founders must be prepared to let go of the reins once the organization is on its feet, and be satisfied with the knowledge that they have done a good thing for the world. Read more about making the transition from founder to your new role in your nonprofit organization...
Launching a nonprofit is serious business, so it is important to seriously consider your decision before you commit. The nonprofit world is highly competitive and funding is limited, but a good nonprofit idea and a well-run corporation can make an enormous difference in the world of your target population. Read more about things to consider before you launch your new nonprofit organization...
When starting a nonprofit organization, it is vitally important to establish and maintain a culture of the highest ethical behavior. Nothing turns off donors and supporters faster than unethical actions. Use these ideas to ensure your nonprofit is adhering to the highest standards of ethics. Read more about ethics in nonprofit organizations...
The effort that must go into a successful nonprofit is very similar to launching any type of business. By nature, non-profits have some special considerations that you should understand when starting a nonprofit organization. Read more about the basics of starting a nonprofit organization...
For people new to the world of nonprofits, there is often significant confusion about the use of the terms "nonprofit" and "not-for-profit". Though there are some technical differences between the two, they are generally used interchangeably. Read more about the terms not-for-profit and nonprofit...
Whether incorporating charitable or cooperative features into a for-profit business or integrating solid entrepreneurial principles into developing a nonprofit, social entrepreneurship is driving a much-needed change in the way we do business. Read more about the future of for-profit and nonprofit organizations...
The social entrepreneur who wants to make a difference in a specific area has two fundamental vehicles to make that difference, the nonprofit organization or a for-profit business with a charitable bent. Understanding the differences between these types of organizations will help you select the right one for you. Read more about the differences between nonprofit organizations and for-profit organization for social entrepreneurs...
Whether you are starting a nonprofit organization or a for-profit startup, the business fundamentals involved in startup are the same. The three keys to success are planning, marketing, and financial management. Read more about business fundamentals for nonprofit organizations...
The social entrepreneur is a new breed of entrepreneur, focused on creating great organizations that not only succeed, but also give back to the community at large. Are you ready to join their ranks? Read more about being a social entrepreneur...
The single largest question facing a social entrepreneur is whether to start a for-profit business that then can support their causes or a nonprofit organization focused on those causes. The best choice depends on a number of actors. Read more about making the decision to be a for-profit business or a nonprofit organization...
While there are lots of organizations that are not making a profit, the true nonprofit organization has a specific definition. The primary characteristic that each operates for the purpose of a particular public interest and not to earn profit for the benefit of individual shareholders. Read more about the definition of a nonprofit organization...
There are a few fundamentals required of the social entrepreneurs who will succeed at making an important impact in the world around them. In order to succeed in developing a new nonprofit, you will need a viable cause, commitment and resources. Read more about the fundamentals of nonprofit organizations...
The nonprofit world has strived to set themselves apart from for-profits by establishing a culture of openness, positive shared values, and respect. The newest breed of business owners, known as Social Entrepreneurs, are taking the lead in incorporating the values of the nonprofit sector into the for-profit world. Read more about how social entrepreneurs are incorporating values from the nonprofit sector into the for-profit realm...