Causecast

by KERRI FERNSWORTH FEAZELL, Contributing Writer

It’s OK to admit. Sooner or later, it happens to us all. Causecast has convinced you to save the world—this summer. And for the overachiever, passionate, ambitious, leader-types (aren’t we all?) you have your own ideas of how to get the job done. That’s good; the world needs you. And Causecast is here to help you follow Gandhi’s wise advice to “be the change you want to see in the world.”

Oh—pretty important—before you can do that, the government wants you to follow its rules. If they will be recognizing your organization as its own entity that won’t be paying taxes, you need to make a good case to them. You will need to:

1. File articles of incorporation in your state, typically with the Secretary of State. Check out sample articles of incorporation.

2. File the appropriate forms with the IRS to obtain federal income tax exemption. It can be worth enlisting a lawyer and/or accountant to help you through these steps. Your state charity registration office will also be an important resource.

Aside from paperwork, there are other important aspects of structuring an effective nonprofit organization. The Foundation Center has a really good 12-step tutorial overview of the process. If you want a truly Causecastic, off-the-charts, amazing nonprofit, here are a few how-to tips to help ensure your success from the beginning.

Tip #1: Don’t do it by yourself.
You’re a pretty impressive person, but despite the delusions of grandeur that we all have, you are not the only hero who wants to save the world. There are other people who want to help you and there may even be other organizations already doing the things you want to do.

You can actually get in trouble if you try to do it alone. Nonprofits are required to be governed by a board of directors. BoardSource is a great resource for your questions and they have a very helpful FAQ page. When developing a board of directors, it’s important to expand your search to people beyond your own network to fulfill the essential roles of an effective board; boardnetUSA is a good tool to search for volunteer board members in your area.

If you just ran out of ink printing the 72-page IRS Publication 557 referenced previously and you’re feeling a little overwhelmed with the idea of asking professionals to volunteer for your board, don’t give up. Do realize that starting your own nonprofit isn’t the only option to accomplish your goals. If your project is short-term or you want to pilot a program before you go all the way, consider working with a fiscal sponsor. This option, according to the Fiscal Sponsor Directory, “is an efficient way to introduce helpful social concepts and service strategies into the mainstream. It can increase the number and diversity of community programs and cut waste in the nonprofit world.” Fiscal sponsorship is common for documentaries, for example, and often requires a management fee (typically 5% of funds that they manage).

“Competition” is a bad word in the nonprofit world because we’re all one big happy tree-hugging, shelter-providing, community-organizing family, right? But “if you can’t beat ‘em, join ‘em” is pretty good advice for the nonprofit world. If you can’t make a compelling case that your nonprofit will serve a unique population in a unique way, you’ll have trouble getting funding. The good news is that donors love collaboration—and some even require it. Just like companies, there are nonprofit mergers and acquisitions. If you want to avoid that fate, do some research on nonprofits providing similar services to similar populations in similar places. Guidestar is a free searchable database of over 1.7 million organizations.

Tip #2: Have a plan and commit to sustainability.
If you provide useful services, your clients will depend on you and the last thing you want to do is let them down because you didn’t have a plan and couldn’t pay the bills.

Idealist defines strategic planning succinctly as “a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future.” A business executive on your board of directors who thinks in terms of bottom line efficiency and big picture is a good candidate for your strategic planning committee chair. You need a good team of people who can develop a forward-thinking strategic plan and roll up their sleeves long enough to see it through. As circumstances change, your strategic plan should be referenced as a guide to adapt to the most pressing needs and opportunities of your organization and those you serve.

As part of your strategic plan, and even before you file your paperwork, research your funding options. Common sources of nonprofit funding are: individual donors, foundation/government grants, corporate sponsorships and events. Having a seasoned development consultant, staff member, and/or board member with fund development experience is a good strategic move.

When courting potential donors, developing relationships is essential. Start with who you know; find out who they know that might also have interest in your work. LinkedIn is a great networking tool to leverage for relationship mapping. For example, I’m co-founding a nonprofit and identified Nike as a potential corporate sponsor that matches the goals and market of my organization. I checked LinkedIn and found out that I know someone who knows someone at Nike. A relationship with such a large entity will take time to cultivate but that process will be much faster if I can get a personal introduction to the right person.

Tip #3: Love it.
If the test to find out what you love to do is identifying what you would do if you weren’t paid, establishing a nonprofit turns the hypothetical question into a fast reality.

Please continue paying your electricity bill, but I know you’re not in this for the money. So, remember those grand fantasies I stole from you at the beginning of this article? I’m ready to give them back. If you’re still excited about your nonprofit after refilling your printer’s ink and reading Publication 557, you deserve them. We wouldn’t set out to change the world if we didn’t think we could do it, right? You have a passion for what you want to do so try it! Consider your options and be smart but allow yourself to take risks, make mistakes, and have fun. You will make sacrifices and you will work long hours but if you love it, the work is meaningful to you, and you help people in a way they need to be helped, it will be worth it. Be the change, Causecasters, be the change.

More Resources:
Get Ready Get Set: What you need to know before starting a nonprofit

Starting and Running a Nonprofit Organization by Joan M. Hummel

Starting and Managing a Nonprofit Organization: A Legal Guide by Bruce R. Hopkins

Photo by sara b., flickr