You’re focused on a pressing cause in your community, and you’ve realized you can’t solve this issue as an individual. Instead, you’re thinking bigger – you want to start a nonprofit so that you can work on large-scale solutions and get more people involved.
But starting a nonprofit can be tricky from a legal and financial perspective. Working with J.A.H. Financial Services & Real Estate can help you navigate this process! Furthermore, these tips lay out some of the essential steps you’ll have to take as a new nonprofit leader.
In order to operate your organization as a nonprofit and get the tax benefits associated with this status, you will need to register with the appropriate legal structure. This means gathering and submitting the right paperwork to apply for 501(c)(3) designation. While you could hire a lawyer for assistance, it’s often easier and cheaper to file through an online formation service. In order to choose the best service for your needs, read reviews of different services like Legal Zoom LLC to compare the pros and cons.
Applying for Grants
You might be able to cover some of the initial costs of running your nonprofit from your own savings. But what if you need additional funding right off the bat? Applying for grants could be the solution.
If you’re sending out grant applications, you don’t want to waste time submitting lackluster materials or targeting the wrong programs. Instead, Nonprofit Expert recommends searching for grants that align with your organization and reviewing the requirements carefully, writing tailored applications for each individual grant, and going over your materials in detail before you submit anything.
Once you’ve officially gotten your nonprofit off the ground, you’ll need to start fundraising in order to launch new projects and ongoing philanthropic programs. If you’ve never worked in fundraising before, you might be nervous! But with time, you’ll figure out which strategies work best for your organization. For now, enSYNC Corporation recommends providing mobile, text, and online giving options, personalizing your communications with potential donors, and offering recurring gifts and perpetual membership.
Managing Your Team
You may not have many full-time employees on staff, but between your hired team members and your volunteers, you’ll inevitably end up managing large groups of people. How can you create a supportive internal culture and make sure that your volunteers feel consistently included? NPCrowd recommends keeping the atmosphere at work positive and upbeat and recognizing both employees and volunteers who go above and beyond. People want to feel valued for their contributions!
When you’re running a nonprofit, managing your finances smartly is key – otherwise, you might fail to report important information, end up cutting crucial programs that serve vulnerable people in your community, or fall short of your broader altruistic goals. In order to ensure that you’re managing your finances well, it’s a good idea to work with an accountant who can help you stay on track. Before tax season, meet with your accountant so that you can accurately report all of your organization’s essential financial data for the year. Reporting requirements will vary by state, so your accountant will ensure that you comply with the specific regulations in your area.
Starting your own nonprofit allows you to channel your time and effort toward issues you’ve noticed in your community. Plus, you’ll be able to connect with other people who want to solve the same problems that you do! By following these tips, you can register your nonprofit with the proper legal structure, start applying for grants and manage your funds wisely.
Need financial guidance for your business or nonprofit? J.A.H. Financial Services & Real Estate has you covered! Call us today at 860-538-4476 to learn more about our services!