Question about starting non profit?

Question

Hi. I am planning on starting a non profit helping local children. There is no organization helping out with this specific problem locally so I expect many children will be in need of this service. I would need to devote 100% of my time to this and would continue running it for years to come. My question is about earning a salary. If I start it I will be the President of the the board since I have all the ideas to start. Since board members don't make a salary, can I also be CEO? How do I go about running the org and being able to pay my bills? I don't need info on how to start a non profit, just how I can run things and earn a salary. Thanks a lot.

Answer 1

You can be Chief Executive Officer, but the Chair and other members of the board can not be staff members and are not on salary.

You should read up on the proper way to start and fund your organization. The absolute best compendium of information on how to start and efficiently run and fund a nonprofit organization is located at the Foundation Center website.

You can start with the Foundation Center's Establishing a Nonprofit Organization online tutorial. This tutorial describes 12 tasks that need to be accomplished during the process of establishing a nonprofit organization. Issues include board development, creating bylaws, filing for federal tax exemption, recruiting staff, and developing an overall fundraising plan.

http://foundationcenter.org/getstarted/t...

I also recommend browsing their FAQs (frequently asked questions) for even more information

http://foundationcenter.org/getstarted/f...

Best of luck to you!

Answer 2

When you start this venture your main sources of income would come from donations, fund raising, and grants. There is so many ducks you need to put in a row to put this together and at the end of the day to start you will need people who not only believe in your mission but can donate their time. That's the key. Given the nature of your organization you'll be able to apply for grants from United Way, Local Banks, see if they have a community development officer. Good Luck

Answer 3

To avoid an inherent conflict of interest and if you want to get paid, after incorporation, I would assemble a competent governing board and assume the role of CEO/Executive Director. You'll still basically control the organization, but fund-raising will be a lot easier if the board president/chair is not trying to raise funds for his/her salary.

I have seen organizations where the Board Chair/President is also the CEO, but to a funder (and the IRS), it looks a bit funky. Besides the conflict of interest, you'll have to recuse yourself from most votes involving budget and resource allocations as well as CEO performance evaluation.

Answer 4

Non profits are allowed to pay staff, incl. the President, from the donations they get. Obviously, they can be audited and any extraordinary thing can be questioned, but looks like if you are going to work full time you are entitled to a fair salary --I believe the board has to authorize it.

Answer 5

In PA, there is an organization called Can Do which gives advice about such things.....check to see if your town has one. If not, call your city hall and ask to speak with someone who approves and /or gives permits for businesses in your city.

Good Luck