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3 Steps for Young People Starting a Nonprofit

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A guest post by life coach Elena Stewart

People of any age can make a difference in the world, and one way to start enacting change is by establishing a nonprofit. By creating an organization to fulfill your mission, you can garner support for your cause, obtain resources to help others, and more.

Check out these three steps toward starting a nonprofit, no matter how young (or old) you are.

1. Get Organized

Everything from getting your idea on paper to covering your bases tax-wise is part of organizing your nonprofit.

  • Select a business structure to operate your nonprofit under.
  • Investigate any tax obligations or requirements.
  • Name your nonprofit members or board and set up a decision-making process.
  • Make your CPA proud with batch invoicing software, which can help you keep track of important financial and expense information.

2. Find Funding

Sourcing funding for your nonprofit can sound intimidating, but with a combination of formal support and social traction, you can fill your organization’s financial needs.

  • Apply for grants and other financial programs based on your mission.
  • Start crowdfunding with the support of your social network (and friends of friends).
  • Launch a product to earn the income to support your nonprofit’s activities.
  • Work with Communicate! Consulting to learn how to approach donors.

3. Plan Your Priorities

Figuring out what your nonprofit will do and who it will help is essential, but what are the exact steps you need to take to be successful? Outline your priorities before you act.

  • Focus on a single cause or a handful of closely related ones and craft a mission statement.
  • Create measurable goals, preferably ones you can work toward in steps.
  • Generate interest in your mission with social media and other outreach.

If helping others is your true mission in life, starting a nonprofit could be just the way to do it. While you’ll need the support of your loved ones and community, you can start making positive changes in the world all on your own.

Elena Stewart made the jump from a corporate job she wasn’t entirely happy with, to running her own business that gives her the financial freedom and flexible lifestyle she’s always wanted. As a life coach, she now gets the happiness of helping others get to the places that might seem out of reach.

Fundraising Tuesday: On the Right Side of the Law

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A guest post by Brock Klinger

registerCharitable solicitation registration is often overlooked by nonprofits. The complexity and bureaucracy of the application process can be enough to dissuade even the most conscientious organizations from compliance.

However, despite its challenges, charitable solicitation registration is an important part of any prudent organization’s compliance program.

Here’s a story that shows you why.

State Agencies Can Make You Pay

A large, well-established Harbor Compliance client went through a wholesale change in its executive team.  As is common with personnel transitions, there were a few communication breakdowns. Unfortunately, several of them occurred with the various state agencies responsible for charitable solicitation regulation.

By the time the change in the executive team was complete, the nonprofit’s registrations in over a dozen states had lapsed and needed to be brought back from 2-5 years of noncompliance. The organization was hit with per-state penalties of up to $6,000 across multiple jurisdictions.

Thankfully, we were able to work with the state governments to negotiate reduced penalty fees, since their lack of compliance was not willful. However, that didn’t stop California from assessing penalty fees to their directors with the provision that no funds raised by the organization could be used to pay.

Fast-forward to today and the organization is back to being properly registered in all 41 states that require registration. However, their board and their officers would all tell you the risks of noncompliance far outweigh the cost of a well-structured compliance plan bolstered by the consultative support of a responsible service company.

Charitable Solicitation Compliance: Free White Paper

Fundraising compliance is one of the most vexing areas for nonprofits. Harbor Compliance created a free white paper to help your nonprofit executive team and board make sense of the requirements.

The Charitable Solicitation Compliance white paper will answer your questions on the registration and renewal requirements, the state applications, the Unified Registration Statement (URS), online fundraising and “Donate Now” buttons, as well as the consequences and penalties for noncompliance.

Education is a key element to helping your organization become compliant. Downloading the white paper is a great start. Enjoy!

Click here to download the white paper now!

Author Bio: Brock Klinger is an Account Manager for Harbor Compliance, a leading provider of compliance solutions for organizations of all types and sizes. Headquartered in Lancaster, Pennsylvania, Harbor Compliance partners with organizations in every state and over 25 countries abroad to help solve the most challenging compliance problems. Brock is an Eagle Scout and in his spare time volunteers with Boy Scouts of America.

Are You a Fundraising Outlaw?

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Registering your nonprofit for fundraising sends a positive message to your donors. Guest post by James Gilmeroutlaw

A huge percentage of charities in the United States are raising money unlawfully, and don’t even know it.

Both new nonprofit founders and executives mistakenly believe that recognition as a 501(c)(3)–that is, being exempt from federal income tax–is a “golden ticket” to limitless fundraising. The reality is, forty-one states have an additional registration requirement, which if you ignore, can get your organization in some hot water.

This post is a basic introduction to the subject of charitable solicitation (aka fundraising) compliance. The purpose of the article is to get you thinking about your organization’s credibility, how to avoid penalties, and even impress your donors!

Registering with the State

“Fundraising registration” occurs at the state level, where you file information about your organization’s leadership, financials, and programs with the Attorney General or Secretary of State.

“Compliance” refers to managing  registration requirements in each state where you solicit, renewing your annual registration on time, and keeping up with additional corporate filing and registered agent requirements.

Why Comply?

There is a cost to fundraising registration, both in government fees and time, but those costs are easily outweighed by state and federal penalties. We’ve seen fines of over $5,000 for a single infraction in one state. How would a hit like that affect your organization?

Besides fines for failure to register or renew, states can revoke your organization’s state tax exemption, hold officers and directors personally liable for payment, and deny your right to solicit in that state altogether.

At the federal level, you disclose where your organization solicits funds directly to the IRS on your Form 990 tax return. Let’s face it: lying to the IRS isn’t a good idea either!

Fundraising Compliance: What You Gain

The purpose of all this work for you is a good one: to protect citizens of that state from unregulated or illegitimate charities.

Just as you do research on prospective donors before you ask them to give, experienced donors use state databases to look up your nonprofit before they make a contribution, especially if they’ve never heard of you. Many foundations and grantmakers consider state registration an important prerequisite to any funding. Being registered with the state helps reassure donors that they are making a good investment in your organization.

By investing in compliance, you demonstrate your credibility and commitment to the community you serve. To learn more about specific fundraising registration requirements in your state, visit this Fundraising Compliance Guide.

Happy fundraising!

 

Author Bio: James Gilmer is a compliance specialist for Harbor Compliance, which establishes 501(c) nonprofits and helps them stay compliant. Harbor Compliance assists charities in every state and several countries abroad. James serves on the Board for two nonprofits in Lancaster, Pennsylvania.

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