Where do I start?
Are you interested in starting a nonprofit and not sure where to start? This guide will help you find information to help you get started and will have links to other nonprofit resources.
What is a Nonprofit?
According to the IRS, a nonprofit organization is an organization that qualifies for tax-exempt status under the Internal Revenue Code because the purpose of a nonprofit must be charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. It is an organization that does not plan to make any money or profit from the work they do.
What makes an organization "tax-exempt"?
The Internal Revenue Code that designates an organization as charitable or tax-exempt must fall under the IRS's designations for a 501(c)(3). In other words, the designation means that the donations and funding for your organization are tax-deductible.
Things to Consider
Below are some things to consider before starting a nonprofit organization:
1. Are you certain starting a new 501(c)3 is the best way to solve issues and provide social change? Have you considered other alternatives to starting a nonprofit? Have you talked with other organizations about collaborating or volunteering? Have you considered identifying a fiscal sponsor or becoming a program of another organization?
2. Who else is doing this in your community? What other organizations provide similar services or serve a similar constituency? Did you know there are over 4,000 nonprofits in the Pikes Peak region? What makes this mission and these services unique? Who is your charitable “competition” and/or partners?
3. What skills and expertise do you bring? Are you willing to make a full-time commitment? Have you considered the time commitment involved? Do you currently or have you worked/volunteered with a nonprofit organization in the past?