Starting a business is exciting, regardless if your business is for profit or a non-profit organization. I've always been a firm believer that fundamental principles NEVER change and I'm happy to share with you that it is no different for starting a business. Its recommended that while your are reviewing the mistakes to avoid points, simultaneously take a self-assessment of what you already have in place and the areas where you need to go back and put in place. In doing so, you will expand your odds of forming and developing a successful business or organization. Remember principles don't change, only people, places and things do. Follow these point and you will begin on a good start and avoid unnecessary pitfall. Until next time... Enjoy! -CeCeBROWN |
- Poor Initial Research
While passion for your cause may be strong, research is essential before determining if a need exists for a new organization to address it. Can the need be addressed if you partner with an existing organization? Do you have any idea of the operational aspects of a nonprofit organization? Would the organization qualify for tax-exempt status? Read everything you can before starting. - No Business Plan
You will quickly discover that a nonprofit organization is a business. In order to survive, it must have at least as much money coming in to the business as it has going out in services and expenses. Have you written a realistic business plan? - Not for a Charitable Purpose
Sure it's a great idea, but does in qualify as a charitable cause? The basic definition of a tax-exempt 501(c)(3) nonprofit organization is one that serves the public good and is organized for religious, charitable, educational, scientific or literary purposes. If you are unsure, research similar organizations for information. - Failure to Register
Registration of nonprofits is required in most states. Some people think they don’t have to register and since they are "nonprofit" they really won’t get in any trouble. Wrong! I spoke with the head of a state charity bureau who used to be a prosecutor and he looks forward to being one again any time it is necessary to protect the interests of the people. Registration protects citizens of states from becoming victims of fraud and registration of charities, paid solicitors and fundraising counsels helps to maintain a responsible environment for charitable work.
Read the remaining mistakes from the original article, http://www.nonprofit.pro/10_mistakes.htm