Blog 187: Starting a Non-Profit Organization or Business

By C. Maria Macon

Guest Writer

If your passion is helping others, you can start a nonprofit organization and avoid expensive legal fees. Getting a nonprofit agency up and running is not as difficult as you may think. Here is a brief checklist to assist you in taking the most appropriate steps:

[  ] Mission Statement - Craft a mission statement in a few sentences that communicates exactly what your nonprofit organization intends to do. Or, what societal “ill” you want to be a part of helping to solve.

[  ] Articles of Incorporation - To legally establish your nonprofit and register a name and purpose, you want to become an entity by filing Articles of Incorporation with the secretary of state, in the state that your nonprofit will have its primary office.

[  ] Tax Identification Number - which is an Employer Identification Number (EIN). This number will provide your nonprofit organization with an identification number. This is similar to your personal Social Security number.

[  ] Board of Directors - This is a group of individuals that you bring together around the mission of the organization.  This group comes with skills to benefit the organization and carry your mission forward. This group also has the legal and fiduciary responsibilities of helping to set policy and procedures for the organization and raise funds. Boards are temporary peopled with volunteers who from time to time move on.

[  ] Bylaws - This is a document written specifically for your organization and serves as the governing document (rules & regulations) for your board of directors. This document defines how your nonprofit will be managed, which duties directors, officers and committees will have. In addition, how those responsibilities will be carried out.

[  ] Budgeting - Think realistically about the potential earning power of your organization and the annual expenses. Create a list of the anticipated start-up expenses that your organization will have. Then create a start-up expense sheet, project the first and second full year of expenses. Give some consideration as to where the revenues could reasonably be generated. Once you have this, set your projections before the newly created board of directors for feedback and approval.

[  ] Tax Exempt Status - Only nonprofit entities can apply for tax-exempt status. Once you have completed the above six steps, your legally established nonprofit can then apply for tax exemption through a process that can take as few as ninety (90) days, depending on the scope of activities in your nonprofit. This status is sometimes called a 501(c) (3) tax-exempt status.

[  ] Fund Raising Committee - One of the first committees that you should establish is a fundraising committee. This is a group of individuals that should include some board members and outside folk with a vested interest in the mission of the organization. This group seeks continuous funding to run the nonprofit organization you have just established. Your bylaws should allow for committees.

[  ] Grants - It is most advisable that your nonprofit organization has received 501(c) (3) tax-exempt status before applying for grants. Grants are the process of securing money for the day-to-day operations, to promote the mission, programs and activities of your nonprofit organization.

Have you always wanted to run your own business? Then think about starting a small or large business. Either way, you will need to map out your road to success; which is referred to as a “Business Plan” to assist you in this endeavor, we have listed an outline and its order of what should go into your business plan in the form of a table of content.

Business Plan

Table of Content

EXECUTIVE SUMMARY (this is the last thing you write, but should comes first in the business plan layout)

 

THE INDUSTRY, THE COMPANY, AND ITS PRODUCT

A.   The Industry

B.   The Company

C.   The Product or Service

MARKET RESEARCH AND ANALYSIS

D.  Customers

E.   Market Size and Trends

F.    Competition

G.  Market Share and Sales

MARKETING PLAN

H.  Overall Market Strategy

I.     Pricing

J.     Sales Tactics

K.   Advertising and Promotion

OPERATING PLAN

L.    Location

M. Facilities and Improvements

N.  Strategy and Plans

O.  Labor Force

MANAGEMENT TEAM

P.   Organization

Q.  Key Personnel

R.   Management Compensation and Ownership

S.    Board of Directors

THE FINANCIAL PLAN

T.   Sources and Users of Funds

U.  Pro Forma Cash Flow Analysis

V.   Profit and Loss Forecasts

W.Pro Forma Balance Sheets

APPENDIX

Polish I.N.C. an international Business and Nonprofit Consulting company can initiate and prepare all of the above mentioned documents and work-related preparation for you. Just give us a call at 980/202-9149

POLISH, INC.

1101 Sunset Road Unit # 681805

Charlotte, NC 28216

Ph: (980) 202-9149