Posted on September 15, 2010
by
ssalinas
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Are you planning to start a non profit organization? Before we find out how to start a non profit organization, we should know what a non profit organization is. The difference between non profit organizations to the for-profit organization is that the for-profit organizations distribute all the profits to the owners or to the stockholders while the non profit organization is using their own profits to advance all their programs. The non profit organization falls on five categories:
- Trade Organizations – this one is organizing the advantage of the certain group of people that have common professions like for example Association of Research Librarians or Meeting Planners in the International Association. This is also includes the chambers and those unions.
- Charitable Organizations – This must demonstrate the component of being benevolent in general. This is diversely the category including the museums, religious groups, organizations in environment and in education, libraries and many more that is referred to charities.
- Social Clubs – This includes the country clubs and some fraternal organizations.
- Governmental Groups – This includes the country, state, city and those federal agencies.
- Political Groups – This group organize the promotion in some certain issues, policies or even in the candidates for some political offices.
So after we define what is a non profit organization is, now we have to know how to start a non profit organization. The steps are listed below:
- Before you do or to start an organization make sure you already do some research about it. The research is the information about the states you will build the organization like for example in California where you have to check the center of non profit management and the corporation handbook for non profit in California.
- The second step you have to do is to build or create a mission and vision for your non profit organization or company.
- This non profit organization is also a business like the for-profit one, so you have to create a business plan for it. You should have a solid plan to make sure that it will be a successful start that will also help you to choose what type of non profit organization to build up.
- Make sure that the status of this non-profit will serve the company in a best way. These non profits don't pay any taxes and they are accepting all kinds of donations. They provide a receipt for tax deductible for their donors.
- The last step is to file an incorporation papers in the state where you will start a non profit organization and make sure that all of those papers is coded. Then you have to apply for the status of the non profit in the federal government.
Those are some easy steps on how to start a non profit organization. Hope it helps you to decide and to start an organization for you own.
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