10 Steps to Starting A Nonprofit

by Chataun Denis on 09/28/12

According to Internal Revenue Service data (2010), in 2009 55% of nonprofits earned $0 income. Another 10% earned between $1-$2,999; that's 65% that ended the year earning less than $3,000! For many, I'd guess this was not their intention.

The common mistake I see people make when starting nonprofits is not having a business model. Most people I talk to don't realize that nonprofits can actually sell products and services and earn revenue. Yes, nonprofits can earn profits; and they should! Operating with a business model contrary to earning income and profits (or surplus as it's called in the nonprofit world) will ultimately lead to insolvency.

To overcome the usual mistakes, I've developed a list of 'rule of thumb' steps to help guide those of you who are interested in starting a nonprofit. Keep in mind, this is not a comprehensive step by step guide, but an overview to get you started.  

Step 1 - Know the steps!

Step 2- Define your mission and vision

Step 3 - Choose a business structure

Step 4 - Define your business model

Step 5 - Design your program model

Step 6 - Apply for tax exempt status

Step 7 - Define your implementation strategy

Step 8 - Launch your business

Step 9 - Collect and evaluate data

Step 10 - Plan for growth

To learn more about the 10 Steps, join us September 29th for an informative workshop, 10 Steps to Starting a Nonprofit. Click the following link to register, http://waa10steps.eventbrite.com/.