8 Steps for Starting a Non-Profit from a Social Entrepreneur

I started D.R.E.A.M. Life at the age of twenty-three after working as a volunteer for a local non-profit organization.

I didn’t have a degree in non-profit management.  I didn’t have years of work experience in the field. I gained a small amount of experience in the sector and decided I wanted to make a difference in my community.

Big Mistake. While it’s nice to say that I became a social entrepreneur relatively young, the truth is, I was merely an inexperienced girl with a lofty dream of helping others. Little experience plus big dreams does not lend to a successful entrepreneur.

Fortunately, in my case, I realized my deficiencies early on. So, I sought guidance from seasoned Executive Directors, attorneys and accountants.  I took courses and read books in the field.  I hired specialists to make up for my weak areas. I got on track.

While my formula for foundation was a little haphazard, I have been able to put the pieces of the puzzle together based on my sought-after knowledge.  So for the countless, ambitious young leaders who constantly seek guidance from me on how to start a non-profit, here are some crucial steps to take – some I knew early on and others I learned along the way:

1. Put Your Idea in Writing – There are several says that this can be done including a business plan, concept paper, strategic plan etc.

Some questions that should be answered are:

1. What problem are you trying to address and how extensive is this issue?
2. What is already being done about this issue, and how is your program unique?
3. What is the mission of your organization, including the long-term and short-term outcomes of your services?
4. How will you measure successes and failures with your service?
5. What demographic do you plan to serve i.e. age, race, gender, income bracket?
6. What are the details of the services you intend to provide i.e. programming outline, location of operation, curriculum details, product description, etc.?
7. What things do you need to have in place before you can begin operating?
8. Will your team consist of paid employees, volunteers or a mixture of both? What are their titles and job descriptions?
9. How do you plan to market your organization?  
   1. What will your budget be, and where will you get funding to operate?

2.  Identify Your Core Team – Although you may be the Founder/Executive Director, since non-profits are public corporations & benefit the community, they have to be operated by a number of people - called the Board of Directors. These individuals make the major decisions vs. day-to-day operations of the organization.

Things to look for in choosing your board members:

• Trustworthiness
• Availability
• Resourcefulness
•  Interest in the cause
• Experience in the industry
• Contacts and Connections
• Fundraising Capacity
• Marketing Ability

For small non-profits, typical board members are 3 – 7 people.

Other vital people to have on your development team are an attorney and accountant.  Many individuals in these professions provide pro bono services for non-profits.

3. Create Bylaws – These are the rules that govern the board i.e. how often they meet, how voting rights work, how people get kicked off, how many years one can stay on the board, etc.

4. Complete and File Paperwork – This paperwork is necessary for the organization to be legally in compliance at the local, state and federal level and includes:

• Articles of Incorporation – To solidify the entity as a business in your state of operation.
• Business Licenses – Certain states (and the IRS) require different licenses for tax reporting, fundraising, etc.  
• 1023 Form – The most popular type of non-profit is the 501(c)3, which allow donors to receive a tax write off.  However, yours may be different depending on your mission and goals.  The extensive 1023 Form must be completed to obtain this status.

*These forms have varying fees to register and templates can also be found to assist in completing them.

7. Get Insured – To protect Board of Directors, staff, volunteers and program space.

8. Take Next Steps – Once the tedious items are out of the way, the cool stuff beings:

• Recruiting –  Find talented volunteers or staff members to assist in day-to-day programming and other operational committees
• Marketing – Determine how to best publicize the organization to potential clients, donors, volunteers, press and the community
• Fundraising – Build financial capacity to insure the stability of your organization
• Service – Start serving your demographic!