Part One of our series in starting a nonprofit will guide you through the steps of formal incorporation. Part Two of our series will provide you with proven ways to raise those first dollars for your nonprofit. Let’s begin.
So you’ve come up with a great idea and a vision to form a nonprofit organization. But where do you start? Here we’ve provided your road map to get a new nonprofit off the ground with sustainability always in mind.
Exclusive on secunett63
The process of forming and incorporating a nonprofit is similar to a corporation, except for a few differences. A nonprofit cannot be formed from any of the following entities: Sole Proprietorship, Limited Liability Corporation or a Corporation “C” or “S”.
A nonprofit, like a corporation, is a legal entity separate from the founder(s); it can survive the life of its founder(s) and can exist infinitely. Unlike a corporation that is owned by its shareholders, a nonprofit does not have shareholders and is not owned by anyone, but is managed by the board of directors. The other distinct difference between a corporation and a nonprofit is how the income is taxed. Now, let’s take you through the process.know more business.
Step One: Recruit a Board of Directors. A board should include diverse representation from the following: finance, legal, someone who represents or is considered an expert with regard to your mission, someone who represents the people you exist to serve, local corporate executive(s) – specifically from a company who tends to fund organizations like yours, community/professional volunteer(s) – persons with a network of wealth, and another nonprofit executive. Ensure that you have a job description in place which clearly indicates board member expectations, including all information related to your nonprofit. Expectations should include: governance, financial support, and hands-on leadership. You do not want a board of directors that feels “just showing up” fulfills their duty. Finally, you never stop looking for good board members. Your board should have a set tenure to ensure there is always room for fresh faces, ideas, and connections.
Step Two: Formation Meeting. The formation meeting is a meeting of the initial board of directors to vote on incorporating and pursuing the tax exemption status as well as to establish the purpose of the nonprofit. During this meeting and all subsequent board meetings, make sure to take meeting minutes to show a unanimous agreement by the board before moving forward.
Waheat 