The number of non-profit businesses continues to grow by leaps and bounds each year. However, not everyone who decides to start a non-profit has actually thought out their idea thoroughly. Don’t make the mistake of jumping into the non-profit arena too quickly. Think it through before you start your non-profit business.
#1. Make Sure You Do Your Research
It is important that you have a passion for your cause, but you need to also remember that a non-profit is still a business and so you need to be realistic about whether or not starting it is a wise move. You need to determine if there is a need for your non-profit or would it be better if you partnered with an existing non-profit organization. Is this really the best solution for your idea?
#2 Time for You to Develop Your Business Plan
A non-profit is just another form of a business. You need to have adequate money coming in so that you can survive and carry out your mission. Many non-profits start with more hope than money. They hope they will have what they need to succeed rather than creating a business plan to make sure they have what they need to be successful.
#3 Be Sure You Will Qualify as a Non-Profit
You might have a great idea but you need to make sure that it will qualify as a non-profit.
#4 Make Sure That You Meet All of Your Legal Requirements
A non-profit is regulated heavily at many different levels. This is done to protect donors from fraud and to make sure that the non-profit serves the public in the manner it is supposed. Do not assume because you are a non-profit that you can’t get into trouble. That’s simply not true. In fact, many non-profits find themselves in trouble because they don’t understand all of the rules.
#5 Make Sure You Keep Good Records
Your record keeping is very important and there are many additional reporting requirements for non-profits, so right from the very beginning make sure you are keeping very good records