How to Start a Charity
Develop your vision., Define your mission., Name your charity., Create articles of incorporation., Write the bylaws for your organization., Set up a board of directors or an advisory board, and appoint a registered agent.
Step-by-Step Guide
-
Step 1: Develop your vision.
The creation of a charity comes from a passion for a cause.
Ask yourself what you are passionate about.
Find out if others are passionate about it.
Imagine what sort of change you would like to bring about.
Creating a non-profit organization is one way to bring it about.
Your charity’s vision should be its ultimate goal.
If you want to start a non-profit organization as identified by Section 501(c)(3) of the Internal Revenue Code, your organization’s activities will have to be charitable and will have to fit within certain categories.
In order to be considered for tax-exempt status, your purpose must be religious, scientific, educational, charitable (for example, providing relief to the poor), literary, or dedicated to public safety or the prevention of cruelty.
Your organization cannot be operated for the benefit of private interests.
Additionally, 501(c)(3) organizations have imposed restrictions on what lobbying activities they can conduct and what types of political engagement they can be involved in.Decide if a 501(c)(3) non-profit organization is best suited to serve your charitable goals.
In addition to non-profit organizations, there are also charitable trusts.
Trusts differ from non-profits in that they are centered more on the allocation of money than on the allocation of community services.
These private foundations typically have only one donor and do not rely on public funding. -
Step 2: Define your mission.
What is your organization going to do? What service will it provide your community? Once you’ve figured out your mission, write it out in a formal mission statement.
A good mission statement succinctly communicates to others--volunteers, community members, and potential funders--what you do and what you hope to do.
The mission statement should be short (ideally three to five sentences), clear, and free of jargon.
If you’re having trouble finding the words, visit established organizations’ web sites and study their mission statements.
Complement your statement with a set of goals that are both achievable and challenging. , A charity’s title often refers to its function.
Many charities are named for someone related to the function that the charity provides. , These lay out the foundations of your organization.
You can find sample articles on the Internet.
Articles of incorporation state the purpose, name, duration of operation, structure, and other basics of your organization.
Most US states have forms online that you can fill out.
Check your state’s Secretary of State website to find the required forms.
Be aware that some states want at least two signatures on articles of incorporation. , Bylaw templates can be found online.
Bylaws are the rules that govern your charity.
A set of bylaws will define how decisions are made, who makes the decisions, what type of governing structure will direct the charity, how the organization will be set up, and how conflicts will be resolved.
There is no legal language specifically required in bylaws.
While not all states require non-profits to have written bylaws, they are useful in helping organizations to run smoothly. , A board of directors will help guide the charity and will make decisions.
A registered agent is responsible for receiving official communications from the state.
The advisory board would ideally consist of unpaid consultants experienced in nonprofit work.
Add significant donors and fundraising partners to the board as the organization grows. -
Step 3: Name your charity.
-
Step 4: Create articles of incorporation.
-
Step 5: Write the bylaws for your organization.
-
Step 6: Set up a board of directors or an advisory board
-
Step 7: and appoint a registered agent.
Detailed Guide
The creation of a charity comes from a passion for a cause.
Ask yourself what you are passionate about.
Find out if others are passionate about it.
Imagine what sort of change you would like to bring about.
Creating a non-profit organization is one way to bring it about.
Your charity’s vision should be its ultimate goal.
If you want to start a non-profit organization as identified by Section 501(c)(3) of the Internal Revenue Code, your organization’s activities will have to be charitable and will have to fit within certain categories.
In order to be considered for tax-exempt status, your purpose must be religious, scientific, educational, charitable (for example, providing relief to the poor), literary, or dedicated to public safety or the prevention of cruelty.
Your organization cannot be operated for the benefit of private interests.
Additionally, 501(c)(3) organizations have imposed restrictions on what lobbying activities they can conduct and what types of political engagement they can be involved in.Decide if a 501(c)(3) non-profit organization is best suited to serve your charitable goals.
In addition to non-profit organizations, there are also charitable trusts.
Trusts differ from non-profits in that they are centered more on the allocation of money than on the allocation of community services.
These private foundations typically have only one donor and do not rely on public funding.
What is your organization going to do? What service will it provide your community? Once you’ve figured out your mission, write it out in a formal mission statement.
A good mission statement succinctly communicates to others--volunteers, community members, and potential funders--what you do and what you hope to do.
The mission statement should be short (ideally three to five sentences), clear, and free of jargon.
If you’re having trouble finding the words, visit established organizations’ web sites and study their mission statements.
Complement your statement with a set of goals that are both achievable and challenging. , A charity’s title often refers to its function.
Many charities are named for someone related to the function that the charity provides. , These lay out the foundations of your organization.
You can find sample articles on the Internet.
Articles of incorporation state the purpose, name, duration of operation, structure, and other basics of your organization.
Most US states have forms online that you can fill out.
Check your state’s Secretary of State website to find the required forms.
Be aware that some states want at least two signatures on articles of incorporation. , Bylaw templates can be found online.
Bylaws are the rules that govern your charity.
A set of bylaws will define how decisions are made, who makes the decisions, what type of governing structure will direct the charity, how the organization will be set up, and how conflicts will be resolved.
There is no legal language specifically required in bylaws.
While not all states require non-profits to have written bylaws, they are useful in helping organizations to run smoothly. , A board of directors will help guide the charity and will make decisions.
A registered agent is responsible for receiving official communications from the state.
The advisory board would ideally consist of unpaid consultants experienced in nonprofit work.
Add significant donors and fundraising partners to the board as the organization grows.
About the Author
Kimberly Davis
Specializes in breaking down complex hobbies topics into simple steps.
Rate This Guide
How helpful was this guide? Click to rate: