Should you start a non-profit? Where do you begin? First, you will need to determine whether non-profit status will serve your purpose. To do that, you must have a clear idea of what a non-profit actually is. 

A non-profit’s mission is to benefit the community and public rather than to make a profit. Non-profits can support charities, arts, religion, or research. There are many different types of non-profits. Your association can be an informal, unincorporated organization, like a self-help group, or you can incorporate your non-profit so that it is a separate legal organization (a good idea so that members can’t be held personally liable in a lawsuit).

Your very first step should be to write a mission statement. Clarify what you hope to accomplish with your non-profit, what services it will provide and who will benefit. After you’ve developed your purpose, do your research. Are you filling a true need or are there several other non-profits out there identical to yours? If there are, you might have a hard time attracting donors. Also, research the legal requirements you need to have in order before starting. You should get help from a lawyer who understands non-profits.

You will also need to apply for non-profit status from the IRS. The IRS recognizes several types of non-profits. The most common one is 501(c)(3) status, which is exempt from federal income tax and able to receive tax-deductible charitable donations. The IRS states that to be eligible for this status, an organization “must be organized and operated exclusively for exempt purposes” and “must not be organized or operated for the benefit of private interests.” More information may be found on their website.

To be eligible to receive most grants you must be a non-profit. The Grantwell has a referral agency that can assist groups in filling out the paperwork for a fee. Find more information here.