Objectives Objectives Objectives Objectives Learning Learning - - PDF document

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Is Starting a Nonprofit Right for You?

Objectives Objectives Objectives Objectives

• Understand what a Nonprofit Organization is and the

steps to establishing 501(c) status

• What to before filing for 501(c) status—Developing

the plan

• Mission-Vision-Values
• Alternatives to starting a nonprofit

Learning Learning Learning Learning Objectives Objectives Objectives Objectives

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WHAT IS A NONPROFIT ORGANIZATION?

According to the IRS:

• Is organized and operated exclusively for one
• r more charitable purposes.
• No part of the earnings will be of benefit to

private shareholders or individuals. Not

• rganized for the benefit of private interests.
• Will not attempt to influence legislation or

participate in a political campaign as a substantial part of its activities.

DEVELOPING A PLAN

• Mission

Mission Mission Mission-

• Vision

Vision Vision Vision-

• Values

Values Values Values

• Environmental

Environmental Environmental Environmental/ / / / Field Scan Field Scan Field Scan Field Scan

• Your Team

Your Team Your Team Your Team

• The Need

The Need The Need The Need

• Program and Services

Program and Services Program and Services Program and Services

• Finances

Finances Finances Finances

• Marketing/Outreach

Marketing/Outreach Marketing/Outreach Marketing/Outreach

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MISSION MISSION MISSION MISSION-

• VISION

VISION VISION VISION-

• VALUES

VALUES VALUES VALUES

Mission Statement Mission Statement Mission Statement Mission Statement: The mission statement communicates the nonprofit's purpose, what groups it serves, and how it plans to do so. For a new nonprofit, developing the mission statement is a critical first step in defining what the organization plans to do and what makes it different from other organizations in the same field. (www.grantspace.org)

Vision Vision Vision Vision: The way your organization sees the world after you accomplish your mission—where you are headed and what it will look like when you arrive. Long-term, desired change. (http://www.entrepreneur.com)

Values Values Values Values: Values are beliefs which your

• rganization's members hold in common

and endeavor to put into practice. The values guide your organization's members in performing their work. Specifically, you should ask, "What are the basic beliefs that we share as an organization?“ (www.idealist.org)

• Who else is doing this work?

Who else is doing this work? Who else is doing this work? Who else is doing this work?

• Is there a successful business model out

Is there a successful business model out Is there a successful business model out Is there a successful business model out there? there? there? there?

• Are we innovative or duplicative?

Are we innovative or duplicative? Are we innovative or duplicative? Are we innovative or duplicative?

THE PLAN: Environmental Scan

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How much staff? How much salary? Who is your Board?

THE PLAN: Your Team

• What is the NEED in your

community that you plan to fill?

• Who is your target audience?
• What is the connection to your

audience and need?

THE PLAN: The Need

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• HOW will you address this need?
• What are the GOALS &

OBJECTIVES tied to these activities?

• What makes your approach unique?
• How will you measure success?

THE NEED: Programs and Services

• What is the proposed budget?
• What are the financial procedures

and infrastructure?

• Where do you plan to get the

majority of your funding?

THE NEED: Finances & Fundraising

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U.S. Giving -Domestic

• Total U.S. giving in 2014=$358.38 billion

–An increase of 7.1% over the previous year

• 72% of that giving was done by individuals

–An increase of 5.7% over the previous year

• 15% was made by foundations

–An increase of 8.2% over the previous year

• The remainder was giving through bequest

(8%) and corporations (5%)

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• How will you reach your

community/constituents?

• How will you keep your community

informed?

THE PLAN: Marketing & Outreach

STEPS TO GETTING YOUR 501(C)3 STATUS

1. 1. 1.

• 1. Establish a Board of Directors

Establish a Board of Directors Establish a Board of Directors Establish a Board of Directors 2. 2. 2.

• 2. Develop Bylaws and Board Policies

Develop Bylaws and Board Policies Develop Bylaws and Board Policies Develop Bylaws and Board Policies 3. 3. 3.

• 3. File articles of Incorporation w/Secretary of

File articles of Incorporation w/Secretary of File articles of Incorporation w/Secretary of File articles of Incorporation w/Secretary of State’s Office: State’s Office: State’s Office: State’s Office: www.sos.state.oh.us www.sos.state.oh.us www.sos.state.oh.us www.sos.state.oh.us 4. 4. 4.

• 4. Obtain an Employer Identification Number

Obtain an Employer Identification Number Obtain an Employer Identification Number Obtain an Employer Identification Number (EIN): (EIN): (EIN): (EIN): www.irs.gov www.irs.gov www.irs.gov www.irs.gov /Form SS /Form SS /Form SS /Form SS-

• 4

4 4 4 5. 5. 5.

• 5. File for federal tax exemption

File for federal tax exemption File for federal tax exemption File for federal tax exemption— — — —501(c)3 status 501(c)3 status 501(c)3 status 501(c)3 status Form 1023 (~$400 Form 1023 (~$400 Form 1023 (~$400 Form 1023 (~$400-

• $850)

$850) $850) $850) **This is where you get tax **This is where you get tax **This is where you get tax **This is where you get tax-

• exempt status

exempt status exempt status exempt status

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• Existing partnerships?
• Who is in your network?
• Do you have space/equipment?
• Is there infrastructure in place?

– Financial Controls – Insurance – Human Resources – Annual Reporting, 990s, etc.

CONSIDERATIONS

• Volunteer
• Find employment with a

like organization

• Serve on a Board
• Fiscal Sponsorship

ALTERNATIVES

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• Tax Exemption/Deduction
• Eligibility for public/private grants
• Formal Structure
• Limited Liability

ADVANTAGES?

• Cost
• Paperwork/Administration
• Shared Control
• Scrutiny by the Public

DIS-ADVANTAGES?

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FISCAL SPONSORSHIP

A legal arrangement between a 501(c)3 and an individual group—giving the non- exempt group access to the benefits of a 501(c)3 without dealing with the administration side of operating.

The Nonprofit Startup Assessment

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Which should you do…?