How Do You Start a Nonprofit Organization?

By Kalli Kauffman (BA 27)

One of the difficulties when transitioning into your next life stage is choosing the right path to pursue. Despite the realities of your looming situation — paying the bills, practicing for those interviews, and possible relocation — you know God has given you skills to glorify His kingdom. But perhaps the career won’t find you; you’ll find the career.

Are you passionate and determined? Can you make a difference in your community? Instead of searching for that job, consider starting your own nonprofit! Director of Grace College’s M.S. in Nonprofit Management Program, Dr. Steve Grill, was involved in creating the nonprofit Kosciusko County Leadership Academy (KLA), an organization that shapes future leaders. Through this experience, Grill gained valuable wisdom in starting, developing, and running nonprofits. Are you curious about the question, how do you start a nonprofit organization? Read his eight helpful tips for starting a successful nonprofit.

Have Values

Having values is a key aspect of running a nonprofit. Before jumping into the overall structure of your nonprofit, you want to establish the “why” of what you do. You need pre-established values that set you apart from other organizations to demonstrate credibility and define your nonprofit’s purpose. Without values, you cannot convince lenders or donors to support your nonprofit, and you will not gain loyal employees and volunteers for your organization.

Have a Purpose/Mission Statement

When forming a nonprofit, remember the purpose you are trying to fulfill. How do you start a nonprofit organization without a mission? It’s important to have a reason for why you do what you do. For your organization to thrive and gain supporters, creating a purpose or mission statement will help others buy in and invest in what your nonprofit plans to achieve.

For instance, the purpose of the Kosciusko County Leadership Academy is to train and network future community leaders with veteran ones. KLA wanted to encourage its cadets to use their training in important local projects. As a result, the organization encouraged the veteran leaders of the county to step up and invest in the young adults in the program.

Do Your Research

Keep in mind the goals you plan to accomplish with your nonprofit. Are they relevant to your community? Is there already a nonprofit that meets these needs? What are the costs required to get your organization up and running? What would a monthly operating budget look like? Is there a large pool of potential donors in your community? Who do you need on your team to be successful? It’s important to consider these questions and more before jumping full force into starting a nonprofit.

Have a Future Vision

In the beginning stages of a nonprofit, you want to cast a vision that gives your organization something to strive for. This means you set up an explicit set of goals or solutions to achieve the needs you are trying to meet. How do you start a nonprofit organization? You reflect on where you see your nonprofit heading in the future. The community leaders starting the Kosciusko County Leadership Academy needed a structured plan of important topics to teach. This consisted of 16 weekly meetings where young adults in their 20s-30s learned about the local history, economy, churches, and orthopedic industry of their community.

Take Time with the Paperwork

When starting local nonprofits, it is essential to consider the importance of paperwork. KLA’s leadership academy, for example, went through a complex undertaking, filling out the paperwork to gain 501c3 status, a type of nonprofit that provides tax credits to those who donate.

To get 501c3 status, refine the small details of how you will structure your nonprofit. To help with these details, work with multiple individuals to figure out the particulars. Many organizations will hire attorneys who can explain and assist with these forms.

You can’t simply say, “It’s going to come in, and some committee is going to keep track of the money.” You have to be able to say, “We have a board, and these members will be responsible for monitoring all aspects of the organization’s operation.”

Filing the correct paperwork is one of the most important steps when asking: how do you start a nonprofit organization? To find what you need, search online for the federal guidelines.

Set up a Board

Understanding your leadership structure is essential in filling out government forms to gain status as a nonprofit. To run a nonprofit successfully, you want to have an effective pre-established system for collaborating and communicating well with nonprofit leaders. The Kosciusko County Leadership Academy executive committee consisted of six individuals supported by a board of 30 community leaders. These individuals attended the meetings and helped with the major decisions in the life of the nonprofit.

Create an Original Name

Think of a name that fits your nonprofit! Does anything come to mind? There might be one that surfaces right away, but sleep on it. It’s a big decision because your name will help you stand out and establish your reputation. Names also play an essential role in search engine optimization. If you want clients, donors, and volunteers to be able to find you, avoid choosing an obscure name and consider including some commonly searched words related to your purpose and mission. This could save you time and money in the future.

Foster Connections

When forming a nonprofit, the connections you build with others is vital to the thriving of your organization. Growing your network within the community helps you become known. The Kosciusko County Leadership Academy, for example, required the young future leaders to meet three important community members at each of their 16 regular meetings. This kind of intentional networking contributes to a flourishing nonprofit. After all, a hallmark of nonprofit work is bringing people together to accomplish great things.

Now that we’ve helped answer the question, how do you start a nonprofit organization, is your interest growing? Learn more about our Grace College Master’s of Nonprofit Management Program to take that next step in starting your own nonprofit!