Several years ago, a group of friends and I wanted to start a new nonprofit organization. We spent countless hours in the months leading up to the launch of this venture, dreaming and planning. Still, like most other start-ups, we focused most of this time on vision casting, event planning, networking, and our social media presence. Working on these things is necessary. It is often exciting and helps build the momentum needed to kickstart a new project. However, it is often easy to overlook the more mundane tasks that must be accomplished before you can officially start conducting business and working with clients. Hopefully, this checklist of a few critical steps will help you stay on track to incorporate your vision.
Find a Name
Deciding on a name is typically one of the first things we do when preparing to start a new organization because it is needed to design a logo and create a website. Before spending time and resources on marketing, it is necessary first to have a lawyer conduct a name search with the Secretary of State to determine if there are any other businesses with similar names and missions. If there are, you will be required to submit a different name to the state, so you must receive approval from the state before proceeding.
Apply for Tax Exempt Status
Once you have a name confirmed, the next thing you should do is apply for tax-exempt status. A lawyer can help walk you through this process and file the necessary paperwork required by the state and federal government. To complete the application, you will need an official vision, mission statement, and bylaws for your organization. When writing your mission and vision statement, it is vital to clearly and concisely communicate what your organization aims to achieve and how that will benefit your community economically and socially. Creating bylaws may sound intimidating, but you can use many free online resources and templates to get started.
Appoint a Board of Directors
All nonprofit entities must have a Board of Directors designated to maintain their tax-exempt status. The board will determine an appropriate meeting cycle, elect officers, and maintain the bylaws. Some nonprofits require that their Board of Directors assist in fundraising and other operational duties, but that varies from organization to organization and is determined by the Founder or Executive Director. Ultimately, the Board of Directors is in place to lead the organization and ensure it fulfills its mission and vision. Choosing strong leaders who share a passion for your organization is vital.
While these tasks may feel daunting at first, it is vital to take the necessary time to create a unique name, write a clear mission and vision statement and bylaws for your tax exemption application, and carefully consider who would be the best fit to serve on your Board of Directors. By doing so, you are setting a firm foundation from which your organization can grow and succeed.
The 412 Project offers strategic planning as well as other support services to help you launch your new church or nonprofit. Contact us today!