How do I begin my own non-profit organization?

Question

I would like to begin a non-profit organization for high school students/young adults, but I don't know where to begin.

Answer 1

Your best bet is to work with an umbrella organization that already exists.

1) They provide the organizational framework
2) They already have all the rules in place to keep you safe from the IRS.

The IRS governs all of this. See links below. You have to apply to the IRS on form 1023 to get Nonprofit status approved. If you can hook up with an existing organization that shares your interest, you can spend your time entirely on fundraising and helping - there is a lot of bookkeeping and administration to running a nonprofit - within the rules the IRS has established.

You can also see if the school or a church will sponsor your efforts within their nonprofit status. Or the PTA. This is much faster than trying to get the status from scratch. If not, expand the scope of organizations you might try to hook up with to other existing charities in your area. If you volunteer with any, start with those you know. I'll add a link below to a charity finder for you to try.

Now, if you are really wanting this. Review the IRS documents below. Find a CPA to help you think it through and complete the documents. You don't want to do it all on your own, the IRS is ....... the IRS. You don't want to make things worse for yourself because you didn't know some detail of the tax law.

It's a fabulous thing you want to do and I hope I have not scared you. We need more folks like you in this world!

Good Luck!!!!

Follow up:
1) What State are you in?
2) Do you already have a plan for raising money?
3) What happened that really made you feel like you HAD to do this?
4) Do you thik you're going to raise more than $5,000 this year and in every future year?
5) Do you want donors to be able to get a charitable donation deduction on their taxes?

Notes:
A lot of info out there is "canned" for one-size fits all start up. I'm of the impression you're not looking to start something fancy and big that's going to be a nationwide. If you do, please clarify.

I know much of this stuff might seem like legal and accounting mumbo jumbo, and it is. It's an impediment for sure. The reason is that there's a lot of fraudulent fundrasing going on out there, so governments need to have some regulations for it. You hear and read stuff sometimes about folks claiming that they don't pay income taxes, well fake nonprofit organizations is one of the major scams. I'm not suggesting you would do this, I'm just trying to help you understand why the government makes this so difficult.

Answer 2

Associations may be a good avenue to explore. These organizations will address many of the thoughts, questions and concerns you'll inevitably have as well as many you haven't anticipated yet. See the source box for some relevant links.

Research, research, research – this cannot be stressed enough. Read as much as you can about the industry. Here are some book titles that are relevant:

* Starting and Running a Non-Profit Made Easy by Entrepreneur Press, David H. Bangs
* Starting and Running a Nonprofit Organization by Joan M. Hummel
* The Nonprofit Handbook: Everything You Need to Know to Start and Run Your Nonprofit Organization by Gary M. Grobman
* Starting & Building A Nonprofit: A Practical Guide by Peri Pakroo

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 3

I'd say you will need to first start by aquiring a license which will make your business "official" and in this process.. ensure that you can prove that your profit margin will be minimal (within the local guidelines) so that you can have the "non-profit" status.

Answer 4

I offer Purse Party fundrraisers for non profits. So keep me in mind when you start! Good Luck!