The idea of launching an organization with a cause was overwhelming to Bethany Diamond.
In fact, she tried not to start a nonprofit because she didn’t want to re-create the wheel. But Diamond didn’t find another organization, at least in metro Atlanta, which focused on raising money for researchers trying to create an early detection test for ovarian cancer. She knew she had to fill that void, but actually doing it was another thing. If you are interested in starting a non-profit of your own, check out these tips and suggestions.
TIPS FOR CREATING YOUR OWN NON-PROFIT
Starting a non-profit is a huge endeavor. This article does not cover all the steps you need to know, but it will provide a starting point for thinking about developing your own non-profit.
· Make sure another group in your community isn’t already addressing the issue. Besides checking with community leaders and organizations such as the United Way that are familiar with local nonprofits, search Web sites such as GuideStar. Idealist has a variety of articles, resources, websites, and books in their tools section, to get you started. You may also want to check out the books How to Form a Nonprofit Corporation by Anthony Mancuso (Nolo Press, 2005) and Starting & Building a Nonprofit: a Practical Guide by Peri Pakroo (Nolo Press, 2005).
· Consider partnering with an existing group that is willing to include your idea into their efforts. The Georgia Center for Nonprofits recommends the following: identify three organizations that have missions compatible with your ideas and meet with them to explore a special project or initiative.
· Talk to people who have started their own non-profits. (From the beginning Diamond relied on a friend who knew all about the nonprofit world.) They can advise you on the paperwork needed to make it official, and they can connect you with other folks as well. Consider hiring a lawyer or accountant to help launch the effort, even if it’s just on a consulting basis.
· Always make sure you can cover your operating costs. Even though Diamond’s organization, Ovarian Cycle, has raised nearly $300,000 in just three years, she insists, “We’re not talking about a well-funded, well-oiled machine.” It almost went under the first year, after Diamond guaranteed to give away 95 percent of the funds raised without thinking about the bills stacking up for daily operation of the organization and its signature event—an indoor cycling ride, every spring. Now, Diamond says she tries to “give away as much as possible,” but won’t dip below 85 percent.
· Write a business plan. The California Association of Nonprofits recommends creating a business plan with details, including the organization’s mission, funding sources, activities, and leadership. For information on writing a business plan check out these articles: proposalwriter.com/smallplans.html and http://sbinformation.about.com/b/a/008904.htm.
· Realize that it’s going to be a time commitment. Diamond estimates from the fall to spring, when she’s planning for the big event, she puts in the hours of a fulltime job. Although she’s participated in other charitable events, she says, “nothing prepares you” for the time you will spend on your own nonprofit.
· Florence Green, executive director of the California Association of Nonprofits, had some helpful hints: Consider whether your idea would best be realized as a not-for-profit or for-profit organization. The advantage of creating a non-profit is securing tax exemption status. 501(c)(3) organizations also can receive a charitable deduction for contributions.
· Realize that you will be giving up control. Green notes that you give up ownership of your idea when you become a nonprofit, because the project now belongs to the people of the state where you’re located and those being serviced by your organization. Additionally, your board of directors will decide the direction and purpose.
· Determine what kind of nonprofit organization you should become—charitable or public benefit with scientific, cultural, or educational purposes; mutual benefit corporation such as a trade association or social group; or a religious corporation.
