The 5 Best Rules for Starting a Nonprofit

Pulse Staff

There are 5 rules you need to know for starting a nonprofit

So you're thinking about starting a nonprofit. You have the dream, you feel the call, and you're determined to make a difference.

Good. The world needs service. The world needs your vision. The world needs more do-gooders, especially during this challenging time.

But before you start your nonprofit, take some time and take stock. There are 5 rules you need to know for starting a nonprofit.

1. Do Your Research

Before starting your nonprofit, you need a clear purpose, gameplan, and a vision. Passion is important, and is one of the keys to a successful nonprofit, notes NonprofitHub.org. But passion alone is not enough. You have to align your passion with your vision.

This is also where you need to determine your scope of service. Entrepreneur and blogger Pat Flynn often says "The riches are in the niches." While he's talking about starting a business, the same concept holds true for starting a nonprofit. Find underserved areas where no one else is operating in, and you will be the one to make a difference.

An important question you need to ask yourself and answer are: "Where is there need?"

Another question you need to ask and answer is all about money. "How much will this cost, and how will I get that money." Be clear-eyed here so you're not disappointed or desperate later.

2. Know the Law

It would be great to just hit the ground running with your awesome nonprofit, but there's a lot you have to deal with first. Like the government. State and federal laws and tax structures vary depending on the category of nonprofit, and it's your responsibility to know what those laws are.

You'll also need to incorporate, choose a business name, appoint a board, decide on a legal structure, and more. USA.gov has more details on how to start a nonprofit organization.

It's intimidating, and that's why it's well worth it to hire a lawyer. While it's true that most nonprofits start on barebones budgets, it's cheaper to avoid a problem early, rather than try to fix one later, notes Nolo.com. And once you've incorporated and started, you'll need to ensure compliance. The site also has questions you should ask when choosing an attorney.

3. Be Honest

Be honest with yourself, and with everybody else.

Being honest with yourself means learning to say "no." You can't do everything, no matter how much you want to. Limit your scope so you don't burn yourself out.

As was noted in Rule no. 1 above, this will be easier if you focus on doing one thing very well, instead of doing many things mediocre.

Being honest with others is just as crucial. You need to convince your donors to give you money for your mission. Don't persuade them to change their mind. Convince them that donating to you is what they want to do - but do it honestly, recommends NonprofitHub.org.

Serve your clients with utmost humility and honesty to gain their trust. You'll also need to be upfront with your board and your donors to gain their trust. You'll need to back up everything you say. Your advertising and pitches will need to be 100% accurate to gain the trust of the public.

Trust is hard to earn, easy to break, and impossible to regain.

4. Service is What Matters

In Rules no.1 and 3, we've discussed how important it is to find where there is a need.

This will lay the foundation for your areas of service. The first few years (and, well, almost all the years to be honest) will be full of ups, downs, frustrations, struggles, and more. What keeps people going?

The service. Your nonprofit is filling a need people have, and making the world a better place. If that's not motivation enough, I don't know what is.

5. Just Get Started, and Keep Going

Once you have a grasp on Rules no. 1-4, it's time to get going.

The world really does need more people and organizations doing good. Somewhere in your community is a person who needs your help. Somewhere out there, someone wants to volunteer with a group like the one in your head. These will come together to make the world a better place.
But that can only happen if you take that first step and just get started.

Good luck.

More Articles You Might Enjoy

Didn’t find what you’re looking for?