Starting a nonprofit involves a variety of steps and quite a bit of planning. Here are a few preliminary questions to answer and issues to consider:
1. What are your objectives (open a homeless shelter, offer scholarship assistance for wounded warriors, start a trade association to educate professionals in a given industry, etc.) and do those objectives fall within one the IRS recognized categories of tax-exempt status (there are dozens of such categories)?
2. Is there someone else in your area already doing something similar? If so, why not team up with them rather than starting a new organization?
3. Selecting a structure (unincorporated association, charitable trust, nonstock/nonprofit corporation).
4. Assembling an initial team who will serve as initial directors and officers and help get the organization off the ground. Assemble experienced team of advisors (attorney, accountant, insurance agent) to assist with the legal, tax, and other issues beyond your experience and expertise level.
5. Develop a fundraising plan and budget.
6. Incorporate and prepare initial corporate governance documents.
7. File Form 1023/1024 with IRS.
8. Address state/local charitable solicitation rules and regulations.
9. Obtain insurance.
10. Confirm annual filing requirements (IRS, state, local).
Lots of great resources are available online to help you through the process.
Answered on Aug 14th, 2011 at 9:51 PM