If you’ve ever looked around you and wondered when the world was finally going to change…
It might be time to wake up and start changing it yourself.
Leaving our world better than we found it can be done in many ways, but if you’re passionate about a cause, and you’ve considered starting a charity organization…
Then you’re in the right place.
I'm Ippei, your friendly neighborhood passive income and local lead generation specialist...
And in my nine step quick-start guide to starting a nonprofit organization, I’ll walk you through everything you need to know about changing the world.
Plus I’m throwing in a summary of the startup cost involved and my secret to passively funding my passion projects that I think will seriously help you out!
All for the low low price of $19.95!
Just kidding, it’s completely free (including the Ginsu knives).
But I’m not kidding about the passive income part, that’s for real…
Anyways, let’s dive right in!
How to Start a Charity in 2021
Want to start a charity organization in 2021? Here's how to get started:
Starting a charity can be a fulfilling way to impact this world for the generations to come. To get started, you will need to develop a clear mission and vision for your nonprofit organization, file for your incorporation as 501(c)(3), and form a board of directors.
Start Up Costs for a Charity Organization in 2021
While this list is not a comprehensive compilation of every you need to start a nonprofit charity organization in 2021, it provides a snapshot of what you need to add into your business plan.
Total: $33,885 - $52,625
9 Step Quick-Start Checklist:
1. Know Your Why
No, I’m not talking about which world crisis your nonprofit or charity organization is supposedly going to solve…
I’m talking about your personal why.
Because here’s deal:
If you’re starting a nonprofit to further your own personal business reach, to create a job for yourself, or to boost your personal ego or public appearance…
You’d best be on your way..
Starting a charity is extremely hard work, and if your “why” is more closely linked to your own personal agenda than a legitimate need within the community that you’re passionate about…
Then you’re starting off on the wrong foot and for the wrong reasons.
And chances are:
The IRS is going to spot this facade eventually too.
If you are going to start a successful nonprofit, and not just a money pit, then you need to be prepared with your “why”.
Your “why” will keep you motivated when the going gets tough, and focused on your goals when you have to make difficult decisions.
Usually, your why will be the reason that you became passionate about your nonprofit’s cause to begin with.
It will be personal, and authentic to who you are and what you believe in.
2. Understand the Real Need
Once you truly know your reason behind starting your nonprofit, you have to understand the need.
Obviously, if you’re starting a charity organization, then you probably have a great idea in mind for the nonprofit you want to start that will serve your local community...
Or even the world at large.
But oftentimes the most obvious need is not the root cause of the problem.
So starting with a great idea isn’t enough.
You can’t start with an idea, you have to start with discovering the real need.
Otherwise, you won’t know if your idea will actually be able to effectively serve your community and adequately address the problem.
The best way to discover the root cause of the issue that you’re passionate about is to get out into the community.
This is your research phase!
Immerse yourself in the cause, and start having face to face conversations with both experts in the field, as well as those directly affected by the problem at hand.
You should be asking yourself these key questions:
For example:
If you are attempting to solve the issue of child hunger within your community, how does something like income inequality affect this problem?
You might discover that the issue you are passionate about has a far reaching spider web of root causes.
To fully understand the need, you have to be willing to take the time to explore the tangle of spider webs and overlapping areas that come with it.
3. Survey the Land
In addition to doing research to fully understand the reach and scope of your specific cause and area of need…
You should also make yourself aware of other organizations within your area that are addressing the same or similar causes.
Guess what?
A little competition is healthy…
But when it comes to changing the world:
We’re all in this together.
Don’t take the stance of viewing these other organizations as your competition.
In fact, they are probably your greatest allies!
So competing for their funding and donors will only make things harder for both of you…
And therefore harder to reach the end goal that you both are so passionate about.
You don’t have to reinvent the wheel if there is another effective nonprofit in your area that is already addressing the same cause that you have chosen.
Choose to partner or collaborate with them, rather than becoming their competition.
Where can you fill a gap or make yourself an asset to those who are already hard at work within your community?
Perhaps there is an overlapping area of need within your current focus that this organization doesn’t have the time, manpower, or funds to address on their own..
Approach them for a meeting to discuss how your up and coming nonprofit venture can run alongside them to address this neighboring area of need.
Having a nonprofit partner who has already been in the fundraising game for your area can be an extremely valuable asset.
Plus, if you choose to present yourself to them as an asset rather than dreaded competition, then they may be able (and willing) to help you avoid beginner’s roadblocks and pitfalls!
So take your time, and survey the land.
And if in your survey, you discover that someone else is doing what you want to do…
Get excited!
But if you come up empty handed, then be prepared to pioneer the journey for those that may come along after you.
4. Write Your Mission and Vision Statement
Now that you’ve had time to narrow your focus and survey the land…
It’s time to craft your nonprofit’s mission and vision statements.
Your mission and vision statements need to be put into words and written down on paper.
They need to be something that you memorize, and can recall at a moment’s notice when sharing your story, raising awareness, and networking with potential partners or donors.
So what exactly is the difference between a mission and vision statement?
Mission Statement:
Vision Statement:
Your mission and vision statement are things you will want to have visible.
Whether you decide to put them on a post-it-note on your mirror when you first start out, or hang them on the wall of your board’s conference room one day…
Keep them visible to you and your team.
The mission and vision of your nonprofit will be a driving force and consistent reminder of why you are doing everything you do.
In addition to crafting your mission and vision statements, consider writing a list of values for your organization.
Think of them as the guiding light behind your mission and vision, and the set of principles by which your mission will be accomplished.
Encourage your team to learn and commit to memory all three of these things, so that they too can effectively promote and raise awareness for the charity.
5. Write a Business Plan
When planning for financial stability as a nonprofit, relying on grants is actually a bad idea.
Many people believe that grant funding is the best or most common way of creating funds, but in actuality, over 70% of non profit funding in the United States comes from individual donations.
In light of this, depending upon grant funding for revenue when first starting out is extremely risky and unreliable.
Plus, they can be extremely competitive and difficult to qualify for.
What you need is a dependable income that is capable of growing.
But more on that later…
Secondly, your nonprofit business plan should focus on strategic growth measurement.
If you have no way to measure your growth or impact, then how will you know if your charity is accomplishing anything, or just spinning its wheels?
The way that you will measure growth is going to be highly dependent on the need and cause that your charity organization is addressing.
Before you start writing your business plan, you should aim to answer these specific questions:
Then you can begin to fill in your business plan outline.
Non-Profit Business Plan Basics:
7. Get Bored… (Ooops: Form a Board)
You might have noticed that step number five on the list of incorporation steps is to form a board of directors.
Selecting and appointing the members for your board of directors is an extremely important step within this process…
So I felt like it deserved its own section.
First things first…
As tempting as it might be to just recruit your friends and family members to be on your board…
DON’T DO IT!
Starting a nonprofit is hard enough:
Your board will sometimes have to make difficult decisions, and you may not always be in agreement with one another.
The stress of dealing with this will only be exacerbated if it extends into personal relationships.
So now that we’ve gotten that squared away…
Let’s talk about the board member positions that you will need to fill.
Your executive committee will be in charge of the board as a whole, and they include these four positions:
Members of the Executive Committee:
These roles may even be required within your bylaws from a legal standpoint, so making sure that these positions are filled and filled with effective and competent individuals is crucial.
In addition to your executive committee, you can choose to add other board members that will help to round out your team.
Your board is there to ensure the success of your nonprofit’s mission and visions, so staffing the board with as many well qualified individuals as possible is a good idea when first starting out.
Having too many may result in a difficult process of decision making, but having too few will leave you swamped and overwhelmed with things to do.
I also recommend including people on your board who can fill these kinds of roles:
Additional Board Member Roles:
Each and every board member that you bring on should be trained in sharing your message and the mission of the organization…
As well as being responsible for collectively creating budgets, fundraising plans, and helping with fundraising personally.
Plus assisting with general networking and speaking publicly about your cause when needed.
If you are stumped on where to find board members, this list should help to get you started:
6. Getting Uncle Sam's Approval
If you are planning to start a nonprofit, then you are probably excited about the liability protections and tax exemptions that come along with this structure.
But before you can officially be considered a nonprofit, you’re going to have to do a lot more than just start collecting donations if you want Uncle Sam’s approval.
You will need to incorporate your nonprofit.
STEPS TO INCORPORATION:
Typically, it will take the IRS anywhere from two months to a year to approve your 501(c)(3) status.
The exception to this rule will depend on which 1023 form you filled out.
As of July 2014, the IRS now offers two different kinds of 1023 forms for nonprofits.
The turnaround time for the 1023-EZ form is only 6-8 weeks after filing.
But to qualify for the 1023-EZ form, your organization must meet the following requirements:
In general, you should set aside considerable time to prepare your 1023 form.
It typically requires between 20-50 hours of work to complete, and filing must occur within 27 months of your nonprofit’s formation.
Another important thing to note is that your 501(c)(3) status can be automatically revoked if you fail to file the appropriate 990 tax return form for three years consecutively…
And then you’d have to go through the process all over again!
When you’re incorporated as a tax exempt nonprofit, it’s extremely important to do everything by the books and on time to maintain your status.
8. Build a Website and Start Your Email List
Alright, now it’s time to put your organization out there for the world to see!
Which means that you need a website.
Your nonprofit’s website is going to be an extremely valuable asset.
Not only will it be the platform on which your story is told to the world, but it will also serve as a valuable tool for gathering donations, and building your email list.
If you are choosing to build your website on your own to save some money (or maybe you’re just graphic design savvy and you want to)...
There are some fantastic website builders out there that will help you to create your website and have it up and running in no time.
Most of them are set up to be extremely user friendly, drag-and-drop templates, so that you can focus on telling your story and getting the word out…
Rather than on mastering Adobe Indesign or learning to code!
Here are a few of my favorite template based website builders:
But whether or not you decide to do it yourself or hire a designer…
Be sure to include these features on your nonprofit organization’s website:
Must-Have Non-profit Website Features
The email list pop-up page is extremely important, because your email list is extremely important.
Your email list is your ability to consistently share your organization’s story, the impact you are creating, and your current partnership opportunities and needs.
When someone subscribes to your email list, even if they haven’t donated a cent yet…
They are communicating an interest in the cause that you can continue to cultivate and nurture through consistent email communication.
Building relationships with those who will be supporting your nonprofit (either now or in the future) is absolutely crucial.
Extending your reach is crucial when it comes to launching a charity organization or nonprofit.
Take a look out our course on lead generation that can extend your organization's reach from good to great.
9. Fundraising Strategies
One of the best things you can do for your charity organization when first starting out is to diversify your fundraising arms.
Long term, you will probably narrow it down to a few streams of steady, predictable income…
But in the beginning you probably won’t have that luxury.
But in the beginning you probably won’t have that luxury.
Before you start your fundraising adventures though, be sure to get your board up to speed and trained.
Plus, if you haven’t done so already, make sure you have your charitable solicitation license…
And check your local state’s secretary of state’s website to determine the licensing requirements for your area.
Then you jump into the fundraising deep end.
Six Key Fundraising Strategies:
At the end of the day, the best thing you can do to ensure success when fundraising for your nonprofit is to develop strong relationships with all of your fundraising sources.
These relationships are the gasoline in the vehicle of your organization.
Without them, you won’t be able to get anywhere.
Pros and Cons
of starting a charity organization
Pros
Yes, you read that correctly. In theory, you can start a t-shirt business for practically nothing! If you already have creative abilities, you can craft your designs in Canva for free, and start selling them via a print on demand website such as TeeSpring, and market your apparel line via social media without any intensive startup costs. While this route doesn’t exactly guarantee a lucrative result, it is possible to get started this way!
Whether you go the route of manufacturing your t-shirts yourself from start to finish, or you decide to use the print on demand method… you will be able to run this business from your home! So if you’re looking for a side hustle or business model that will enable you to ditch your commute… Starting a t-shirt business can be a great option for you! If you do decide to print your t-shirts at home, you will simply need to designate a room, or a corner of a room, as your manufacturing area!
I really cannot express how easy print on demand makes starting your own clothing line. It truly is an ingenious way to start making some extra money, without fully investing in an entire screen printing operation out of your home! Plus, once your designs are uploaded, you can start bringing in passive income as your t-shirts sell and are shipped out to your customers without you lifting another finger. Magic!
I really cannot express how easy print on demand makes starting your own clothing line. It truly is an ingenious way to start making some extra money, without fully investing in an entire screen printing operation out of your home! Plus, once your designs are uploaded, you can start bringing in passive income as your t-shirts sell and are shipped out to your customers without you lifting another finger. Magic!
Cons
While there are some amazing benefits to selling t-shirts...There are some downsides as well. The high demand for t-shirts makes this industry appealing to many many people, which has resulted in a heavily saturated online market for t-shirt sales. This can make breaking into the apparel market difficult at first. Especially if you haven’t done sufficient market research to determine what will sell, and where there is a sweet spot between what’s trending, and your own unique designs.
For many people, the benefits of the print on demand model far outweigh the cons. After all, it does streamline the entire process of selling a physical product! But it has one major downside… Your profit margins. When selling your t-shirts via a print on demand website, you might be lucky to walk away with 30% of your total sale. Granted, you aren’t doing the tail end of the work to manufacture and ship your item, but you do need to recognize that you will have a minimized potential for profit if you go this route.
On the flip side of things, doing it yourself can increase your profits… But that comes with an added level of risk. If you are going to be manufacturing your t-shirts yourself, you will need to invest in much more equipment, which increases your initial investment, and prolongs your ROI. Plus, you will need to order your blank t-shirts in bulk before you’ve accepted your first sale! And if you haven’t properly marketed your business, this can be a risky move.
Fund Your Cause Faster with Local Lead Generation:
I personally believe that most people would give more if they had more to give…
Especially when it comes to money.
Back in 2014, I was only making $2,200 a month after taxes.
And I honestly felt like I couldn’t afford to donate much.
But now that I've spent a few years building up my own online business, I not only have the time to do what I want…
I have the finances to be as generous as I want.
I finally have the ability to invest in the people and the causes that I truly care about.
Plus, my online lead generation real estate gathers cash for me, so my time is freed up.
Which means my hours aren't traded for dollars anymore, so I have time to build relationships and develop ways to leave a greater impact on the world.
If you’re tired of trading your time for money, and you’re itching to leave this world better than you found it…
Then learning the online lead generation model for passive income might be as ground breaking for you as it was for me.
Local lead generation changed my life, and I think it can help change the world too.
So take a look at how we can help you get started with local lead generation, here.
