Top Ten Questions
What kind of non-profit organizations are there?
There are several classifications. I’ve posted the list here. Most people think that all nonprofit organizations are tax exempt organizations, but they are not. This list will help you to identify the classification for organizations that are tax exempt.
What steps should I take in starting a nonprofit organization?
Nonprofit Connectors was created to answer this very need. We hope that you find tools, resources, and answers to help you get your nonprofit started within this website. If you don’t see it here, please contact us directly via email: info at nonprofitconnectors dot com. We also have Free Office Hours every Wednesday from 10am -11:30am (Eastern Time Zone). You MUST set an appointment. Feel free to do so today!
What forms and documents do I need to file?
It is highly recommended that you first check with the IRS website to make sure you know what nonprofit entity you are creating, and what the requirements are from IRS’s point of view. Then your state may have additional documents, or registries you’ll need to join, to establish the validity of your nonprofit organization.
Do I need a lawyer? An accountant? Any other special advisor?
Here is a straight simple answer: No you do not need an attorney to start a nonprofit. However, you will be well advised to have an attorney and an accountant that you can contact when you have questions, especially if you’re creating your nonprofit on your own. Another great resource to have is a membership with your local nonprofit office so you can take advantage of classes and staff for additional resources and support.
Do I need to register with other states if I receive money from someone in another state?
It is not necessary for you to register in that state just for a contribution. However, if you plan to have a fundraiser in another state, then you will want to contact the Department of Assessment and Taxation in that state to register your nonprofit organization. This will ensure that when people call to verify that you are a bona fide charity, it will be confirmed.
Can I get funding for my nonprofit organization? Are there any grants available?
There are many funding sources and great resources for finding them. The first place you should go to look for funding sources is your local library. The librarian will be able to direct you to several resources in the branch, as well as online. Another outstanding resource is the Foundation Center. If you are fortunate to live in a state that has one (New York, DC, Cleveland, Atlanta, or San Francisco), go there first! Otherwise you can access information from them online.
How do I go about soliciting donations?
It is very import that you handle this process properly, as it will affect more people than just your organization. You can only receive tax-free donations after you have received your 501c3 status from IRS. If you have donors clamoring at your door to make tax-free donations, then you’ll need a fiscal sponsor. (Check out this post for resources.)
Why do I need a board of directors, and how do I find them?
Here is another very simple answer, you have a public charity, and that requires a representation of the public to govern it. So, your board is a sampling of the general public, the target market group for your nonprofit organization, and usually the key person(s) that started the nonprofit in the first place.
You can find board members by advertising, referrals from other board members, board search firms, and a variety of other places. You need to be clear about what skill-sets you would like to have present on the board (i.e.: legal, financial, technological, marketing, etc.). A great online tool for searching for potential board members is Boardnet USA.
Do I need to incorporate my nonprofit organization?
IRS says yes! It is part of your nonprofit organizations foundational documents. Also, I would think for liability purpose, and because it is a public entity, it should be incorporated from a good business standpoint.
How do I find out more information?
Nonprofit Connectors would love to help you get started. Therefore, we have created Free Office Hours on Wednesdays from 10am to 11:30am (Eastern Time Zone). You can schedule a 15-minute individual call by emailing: info at nonprofitconnectors dot com. Otherwise, check out the Links of Interest page on this site for other resources in various areas of starting a nonprofit.
