How to Start a Charity

Many ‘do-gooders’ have big ideas on how they can improve the world. But often, individuals don’t know how to start a charity or registered nonprofit to actually do what is needed to make their dream a reality. If you want to make a successful impact on the world, starting a charity can be a great way to put your passion into action. But to actually make a charity work, it must be organized and well documented. For instance; did you know that before a charity is eligible to apply for a grant, the funder requires the charity to have already had its federal 501(c)(3) nonprofit designation submitted and approved by the IRS? Starting a charity can be a big undertaking, but don’t fret! GrantWatch has resources available to help you.

1. Create a Clear and Concise Mission Statement

Above all else, before you start a charity, you need to determine your organization’s mission or ‘reason to exist’. First, you must clearly define your unique mission. One way of doing this would be to develop an outline detailing the projects and services you intend to provide. You will likely want to establish the ‘angle’ that makes your mission different from other similar charities. For example, if your goal is to help at-risk youth, then be clear and concise about the type of support you plan to offer, the age group(s) you intend to help, and so forth.

2. Create a Name

It may seem odd to devote a section to the task of ‘creating a name’ for your charity. However, many organizations become so overwhelmed with providing services and completing their mission, that even straightforward steps – such as choosing a name – can be lost in the shuffle. When you start your charity, use a name that clearly describes your passion and purpose. Furthermore, your charity’s name should be something easy to remember. Finally, select a name that is something unique. Don’t pick a name too similar to other organizations. You want to do everything possible to ensure that your charity will not be confused with other programs.

3. Create a Brand Identity

Creating a logo or website is often thought of as something that’s only done for a (for-profit) business entity. However, brand identity can also play a significant role in distinguishing your charity from other organizations.  Building your organization’s brand identity begins by creating a professional logo and website. First, create a logo and website for your organization. Then, create professional social media profiles for your organization. When considering awarding a grant or donating to a charity, funders will do online research to confirm its legitimacy. Creating a professional brand identity would help show them you are a serious charity in the community.

4. Stay Professional

Sometimes, when individuals are too passionate about their projects, they become so focused on making an impact in their community that they overlook the basics they need to successfully launch their charity. If you start building your organization professionally from day one, you will have a better chance of building the foundation needed to sustain your project and bring long term success. Success will afford you the opportunity to truly help those in need. You may have the best of intentions, but without your documents and other requirements in order, you’ll never achieve legitimacy as a charity. Hiring a lawyer who specializes in working with charities can be a great way to ensure that you follow the proper steps needed to succeed.

5. Registering Your Charity

Organizations that benefit the general public, such as charitable, educational, literary, religious and research organizations, are usually eligible for federal tax-exempt status, such as a 501(c)(3) organization. The application process to become tax exempt can be overwhelming at first. To be approved for 501(c)(3) status, you must submit your application directly to the IRS. Also, you may need to register as a nonprofit with your state. Each state has different rules, so be sure to review the specific requirements for your state. As mentioned above, you may want to consult with a lawyer who specializes with nonprofits to help make sure you have everything you need for a successful application.

6. Recruit Your Team

Board leadership will be responsible for important tasks such as critical decision-making, managing finances and ensuring your charity’s actions align with your policy or mission statement. The board should be a diverse group of experienced individuals legally empowered in order (for the charity) to operate. Having these roles securely in place ensures that your organization stays focused and on track to make a real impact.

7. Create A Plan

Importantly, have to think about the future of your organization. Overnight success is pretty rare, especially in the world of nonprofits, so you’ll need to keep your operations as streamlined as possible as you build fundraising support. Charities typically get funding through the government, along with contributions from the general public. Always make sure that any earmarked donations are used solely for the specific (charitable) purpose for which it was intended. Build a fundraising plan to raise money for your organization. Whatever your purpose, with hard work and support from the community, you can initiate the kind of charity that will succeed in proudly serving your community.

8. Build A Grant Cycle

Last, but not least, you need to create a three-stage grant life cycle. These are the pre-award, award and post-award stages. Create a sustainable structure that works for your organization. How much time will be dedicated towards researching and applying for grants. Will it be only two hours per week, or can you devote two hours a day for this purpose? Whatever amount of time you decide on, the key is to never stop applying for grants. Create a grant cycle that works for you!

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