How to Create a Non Profit Organization

by Kristy Lewallen

A non-profit organization is an organization that uses its profits to help the group members reach a specific goal. Members of these organizations often volunteer and do not receive compensation. A non-profit organization does not have a private owner. Instead, there is a group leader that controls the organization. Most non-profit organizations rely on donations from charities and foundations. To create a non-profit organization, you should learn all the necessary steps that will help keep your organization running smoothly.

Decide what goal you wish for your non-profit organization to reach and name it accordingly. This goal should be a documented mission statement that describes the purpose of your organization. Describe how the organization will benefit its clients. The name of the organization should clearly state its mission and be easy to remember.

Recruit enough board members required by your state if you plan to incorporate. Otherwise, an informal advisory board will help guide the organization and its members. These members will be the "leaders" of the organization and will control when and where meetings are held and how they will function.

Hire a lawyer to give you expertise information about any forms needed to be filed, such as IRS exemption forms and articles of incorporation. A lawyer will guide you through the legalities required and inform you of any personnel policies.

Get a solicitation permit from your local city office before soliciting funds, then appoint an experienced accountant or treasurer to oversee these funds. Some cities require this permit before an organization can solicit donations.

Draft bylaws that will describe how the board will operate. In some states, these are a requirement. Bylaws are a set of rules that the organization will abide by. Consult a lawyer regarding bylaws because they are legal documents and requirements vary from state to state.

Apply for a federal employer number that will be used to identify the non-profit organization. This application is free of charge and can be found on the IRS website.

Get the necessary insurance needed for the non-profit organization, such as property insurance, liability insurance and unemployment insurance.

About the Author

Kristy Lewallen has been writing since 1998. Her published work appears on the National Library of Poetry website and various other online publications. Lewallen specializes in skin care, animal care and how to be eco-friendly.

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