Start a Nonprofit Organization

People assume nonprofit means no income; a well-run nonprofit pays real salaries while serving its mission.

1. 1

   Define one need and program

   One specific community need, who you will serve, and what measurable outcome changes. Funders give to programs, not to good intentions.

2. 2

   Recruit a founding board

   Most states require at least three directors, and the IRS wants a majority unrelated to you. Recruit for finance, legal, and fundraising skills, not just friends.

3. 3

   Incorporate in your state

   File nonprofit articles that include the IRS-required purpose and dissolution clauses, adopt bylaws, and get an EIN. Order matters: state first, then IRS.

4. 4

   File for 501(c)(3) status

   Form 1023-EZ costs $275 if you project under $50,000 a year in revenue; the full Form 1023 costs $600. Donations become tax deductible once approved.

5. 5

   Register before you fundraise

   Most states require charitable solicitation registration before you ask the public for money. Skipping this is the most common new nonprofit mistake.

6. 6

   Run a small pilot program

   Deliver your program once at small scale and collect outcome data. One documented pilot beats any hypothetical in a grant application.

7. 7

   Pursue grants and recurring donors

   Apply with your pilot data and a real budget, build a monthly donor base, and claim the Google Ad Grant, which gives approved nonprofits $10,000 a month in free search ads.