Can Anyone Start a Non-Profit Organization?

The short answer to the titular question is yes, anyone can start a non-profit, at least in theory. In practice, starting a non-profit is an involved and complicated process that requires effort and commitment.

Part of the process involves securing funds, which is easier if you have capital in the bank. However, even without money, if the cause resonates with people, there are other ways to fund your non-profit. Besides funding, you also need to feel strongly enough about the cause and have enough time to commit to it. Here’s a more involved discussion of what goes into starting a non-profit and how anyone can do it.

Costs

Setting up a non-profit will, at minimum, require you to meet some costs that are somewhat constant across the country. These are incorporation, tax-exemption status, and registration fees. While these are the bare minimum, setting up a non-profit is extremely difficult without some further services, such as help with the 501(c)(3) application. These services aren’t necessary in theory, but they are in practice.

There are generally two ways to meet these costs. Firstly, you can pay them off with your personal capital. Secondly, you can raise funds to meet these costs. The second method is particularly useful for people who don’t have much money but do have the desire to help.

Commitment and Preparation

Another condition for setting up a non-profit is feeling strongly about your cause. Your passion can come from many different sources, but what matters is that you are passionate about the non-profit’s goals. Before moving forward, you should put your passion down on paper and define your organization’s values and goals. Not only will this clarify to yourself and others what your non-profit is for, but it will also attract volunteers and funders.

Other than clarifying your values, you should also develop a budget. This will ensure that your non-profit remains focused and on its established path. It’ll also build confidence in people, who will be more willing to volunteer for and fund your non-profit.

If you’re prepared and committed, you’re ready to start a non-profit organization. However, while meeting the prerequisites for setting up a non-profit is necessary, the process itself is another burden. Get in touch with us at A2Z Filings, and we can help you through the 501(c)(3) application process and set up your non-profit.

November 17, 2020November 17, 2020

How Non-Profits Help Their Communities

Parents and their children doing volunteer work at a charity

Even though non-profits operate a lot like for-profits, many people typically view them as diametrically opposed. For-profits are the largest economic agents in an economy. In contrast, non-profits aren’t as significant and mainly improve their communities and help the disenfranchised.

That view is incorrect because non-profits occupy a sizeable amount of the American economy. There are about 1.6 million non-profits in the country, employing about 10% of the American workforce. That makes them the third-largest employer in the country. However, the view is correct about non-profits bettering their communities. Here are some of the ways they do that.

Essential Services

Many essential service providers, such as hospitals and schools, are non-profits. Listing down the industries is a cumbrous task, but consider hospitals and schools. The former address life-threatening injuries, debilitating conditions, parturition, and much more. In fact, you may have been born in a non-profit hospital. The latter is indispensable to a child’s emotional, intellectual, character, and physical development.

Non-profits provide many of these essential services and at affordable rates. As a result, they grant access to these resources to people who typically can’t afford them. On top of that, education helps children develop their civic sense, which leads them to give back to their communities.

Employment

Non-profits also provide employment to their communities, thereby functioning as a means of living for many people. Additionally, if they’re located in minority or discriminated communities, they engage in affirmative action by providing employments to those groups. Lastly, employment improves the living conditions of these communities by stimulating their local economies through the multiplier effect.

A rock with “Hope” written on it next to a rock with “Charity” written on it

Community Relationships

Education helps people develop their civic sense, but schools do more than educate students; they’re also social spaces where people form friendships. All non-profits, insofar as people work in, volunteer to work, or attend them, develop these community relationships. Social science research organizations, for instance, typically work with communities to understand their research’s subject. Other non-profits employ people from their communities or render services to them, which fosters relationships between people.

As a result, non-profits extend economic and social benefits to their communities by improving their living conditions and developing relationships. Non-profits also give their communities a voice in government discussions. Since they’re intimately acquainted with their communities, they help guide governments in improving them too.

If you need help setting up a non-profit, writing business plans, or applying for a grant, get in touch with us at A2Z Filings. We can guide you through the 501(c)(3) application process and set up your non-profit.

October 6, 2020January 3, 2022

The Challenges of Setting Up a 501 C3 On Your Own Without Professional Help

Being passionate about a social cause means you have a heart of gold, and one of the best things you can do about that passion and spirit is to set up a non-profit organization.

This will make sure you’re doing something for the betterment of the society you live in, while also giving people who feel just as passionately about the same cause a platform where they can donate and help do their part.

There are two ways to set up a 501 C3 non-profit organization; the first is to set everything up yourself without professional help; the second is to let a professional company help you.

Here are three challenges that you could face if you’re setting up a 501 c3 on your own.

Coming Up With The Business Plan

Coming up with a functional business plan requires experience, strategic thinking, and a clear vision, because it will help you structure your mission statement and provide clarity for the function of the organization.

The application will need to feature a budget and projections for the file 1023 application, as well as a list of activities that the non-profit will be doing and using to aid the cause that it is supporting. The best way to frame all these points in a way that positions the non-profit in a deservingly positive and beneficial light, is to let a professional company create the business plan.

Achieving A Tax-Exempt Status

Nonprofits focus solely on the mission that is driving them, instead of collecting revenue from services or products. To help the organization run smoothly, achieving a tax-exempt status is important.

To help attain this status, organizations need to complete a 1023 form. This form includes a lot of extra attachments, documents, and details that require details and if the form isn’t filled out correctly, your application could be delayed another six months.

Articles Of Incorporation

Finally, articles of incorporation are important if you’re setting your nonprofit up in the USA. These documents are also referred to as Company Constitution or Corporate Charter and failing to fill these out correctly could delay your application.

Setting a nonprofit is tough, but the hard work goes a long way for the greater good. If you need professional help at any of these stages, contact our team at A2Z Filings today! You can also call us at 561-212-1192. We help inspired individuals set up charities and non-profit organizations by providing high-quality business plan writing and grant proposal writing services.

October 1, 2020January 3, 2022

What Nonprofits Need To Know About The IRS Form 990

Nonprofit organizations are exempt from paying taxes; however, they still have to file form990with the IRS. This form ensures that nonprofits conduct business smoothly and consistently, focusing their entire revenue back into their main cause—legally. If you don’t know anything about 990 tax returns for nonprofit organizations, don’t worry, you’ve come to the right place!

The form needs to be made public, and allows people who believe in that cause to donate without hesitance. This means that it can be a means to strengthen public relations and increase public trust as well.

Here’s everything organizations need to know about form990.

What The Form Does

Form 990 is a means for the IRS and the public to evaluate the way in which nonprofits operate.

This form includes information regarding the organization’s mission, its programs, finances, and their methods of operation. The form also provides nonprofits with a chance to report everything that was accomplished in the previous year.

As of recent changes to the form, it also now includes additional information, for example, the disclosure of potential conflicts of interest, the decided compensation of its staff and board members and other details related to finances.

Which Nonprofits Have To File Form990?

There are many different types of nonprofits that have to file form990 form. These include all private foundations. The specific form for private organizations is Form 990-PF. Other organizations include tax-exempt organizations with assets worth of $500,000, or above, or gross receipts of $200,000.

In addition, organizations under sections 501(c) of the U.S tax code also have to file Form 990 annually.

When You Need To File Your 990

The requirement for filing your 990 is by the 15^th day of the 5^th month after your annual accounting period has begun. Even though many organizations delay submission, it is important to keep track of the deadlines, as it can negatively affect your organization.

Falling to submit a 990 form for three consecutive years can end up in an organization losing its tax-exempt status.

Even though most organizations can file their 990 themselves, however, sometimes, it’s best to get it done professionally to make the document more impactful and position your organization as a more trustworthy one.

If you need help regarding filing form990, contact our team at A2Z Filings or call their team at 561-212-1192 for help today! We help people set up a charity and nonprofit organizations by providing business plan writing and grant proposal writing services, among many others.

September 11, 2020January 3, 2022

The Importance of a Business Plan for an NGO

two individuals going over a business plan for their NGO

As of 2017, there were more than 1.5 million NGOs in the United States. These non-governmental organizations advocate for all kinds of issues, be it politics, healthcare, human rights, or the environment. However, despite the enormous number of NGOs, many organizations don’t survive past the first 5 years. This is because they don’t have a proper business plan, and are unable to achieve what they set out to achieve due to lack of direction.

So, why do you need a professional business plan writer to draft a business plan for your organization? Here’s what a professionally written business plan can help you with.

Focus on Mission & Values

Creating a business plan is the first step in cementing your NGO’s core mission and values. It ensures that you’re focused on what it is that you plan to do, keeping your core values in the spotlight. It also allows you to revisit your existing mission and vision statement and update them if necessary, based on your current values.

For example, let’s suppose when you first started off your NGO, your mission was to help families affected by floods in Florida. Over the years, you’ve also focused on helping individuals seeking rehabilitation due to unrelated reasons. Your mission has evolved from providing housing help to flood-affected individuals, to helping other individuals and families get proper housing as well. With a business plan, you can lay down your revised mission statement, which will then shape your course of action.

Identification of Goals and Objectives

If you run an NGO, simply reiterating your mission statement isn’t enough to keep going. To be able to implement the values and objectives you’ve highlighted in your mission statement, you need to take the right measures for your goals to become achievable.

template with the words “idea”, “plan”, and “action”, representing the different components of a business plan

Business planning allows you to identify your measurable goals and thus, devise a business framework that can help you attain those objectives. For instance, it leads you to recognize the resources you need to move forward,s such as funds, supplies, or staff. A business plan serves as a complete roadmap for your nongovernmental organization, and answers the following questions:

What goals is my NGO aiming to accomplish?
How will I pursue these goals to succeed in my quest?
What will I need to move ahead with my plans and how can I achieve these?

Alignment of Strategies

Business planning also takes into account all the internal and external factors involved that may influence the plan, helping you align strategies. Internal factors may include things like the availability of skilled labor, access to relevant tools, and the ability to generate adequate funds. External factors usually refer to the growth or decline of your NGO’s audience, the economic forces impacting your progress, and the need for unanticipated resources.

Once you know the internal and external factors involved, you can better devise business strategies that would align with your business goals.

A2Z Filings has a team of business plan writers who can help you draft a concrete business plan for your NGO. Call us at 561-212-1192 for more details about our work.