What you need to know about starting a Non-Profit Organization
Ready, Set, Go!
Starting a non-profit is a great way to impact the world in a positive way. Whether you’re a seasoned business owner or you’re new to entrepreneurship — launching a non-profit can seem a little complicated. Tax-exempt organizations have to follow particular procedures when it comes to business formation, raising funds, and annual reporting.
Make sure you’re properly prepared!
In addition to the tips below, LKNConnect supports non-profit organizations with a free business listing in our guide so you can get an idea of the non-profits in our area.
How to Run a Business
To be a great business owner, you need to possess an in-depth understanding of business best practices. Here are some resources to help you learn the ropes.
- Determine how you’re going to raise funds for your mission.
- Learn how to do bookkeeping for your nonprofit.
- Make sure you understand the unique accounting requirements of running a tax-exempt business.
Forming a Non-Profit Corporation
Forming a nonprofit involves choosing a unique business name, reviewing your state filing requirements, and establishing company bylaws.
- Choose a business name that describes what your non-profit does.
- Learn about the specific filing requirements for non-profits.
- Determine whether you need to register your non-profit as an LLC. An online formation service can help you get set up.
- Create non-profit bylaws to supplement state laws and guide the operations of your new nonprofit.
Non-Profit Reporting Requirements
To maintain your non-profit status, you will need to satisfy federal and state filing requirements every year.
- You will have to file form 990 every year to keep your tax-exempt status.
- Small non-profits are typically able to submit Form 990-N online to fulfill their annual reporting requirements.
- Make sure you also report any unrelated business taxable income (UBTI) to the IRS.
- Always maintain good records and board meeting minutes, in case you get audited.
As a non-profit you may qualify for grants in addition to fundraising
Click on the image below to read more about why you might need a professional grant writer.
Are you ready to become a nonprofit business owner?
If you’re driven by the need for social, cultural, economic, or environmental change, launching a nonprofit can be very exciting. Take the time to learn your way around nonprofits and how they operate to ensure your success!
Article by Shirley Martin
Photos courtesy Pixabay.com
“Shirley turned her neat-freak personality into a business when she became a home organizer. When she isn’t busy working her magic on homes in need of her special touch, she is sharing helpful tips on her site, Tidy Life Today.”
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and do not represent LKNConnect.com, its publisher or its staff.