Plenty of people reach a point where they want to build something bigger than themselves. If you've decided that something is a nonprofit organization, this guide is here to help. Below is a practical checklist of the things you should do, and the few things you are legally required to do, to launch a nonprofit that lasts.
Be sure to read the FAQs at the end for anything the main steps don't cover. The roadmap itself is straightforward, but work through each stage carefully so you understand every facet before diving in.
- Identify the need
- Identify the people
- Identify your action
- Register with your state
- Draft bylaws and articles of incorporation
- File for an EIN and open a bank account
- Handle compliance and build an online presence
- Do the work
Steps one through three
Deciding to start a nonprofit is really the first step, so if you're reading this having already made that call, congratulations. Whether you're still on the fence or already posting about your idea online, work through these first three steps. Writing them down and keeping them visible will keep you focused and make sure you spend your time where it counts.
1. Identify the need
There's an old adage in business: if you don't believe in your product, no one else will either. That's doubly true for nonprofit work. Thousands of groups are already hard at work feeding people, building homes, educating, and serving their communities.
Before you spend your hard-earned money and hard-won time, make sure you've identified a genuine need in your community or the world, and do the research to confirm someone isn't already doing the exact work you have in mind.
It may sound coldly pragmatic, but no matter how passionate you are, a project without a real, unmet need behind it is difficult to sustain. So research thoroughly and learn everything you can about your issue. If your nonprofit feeds homeless parrots, learn everything about parrots, homeless pets, the cost of feed, and any community health concerns tied to local avian populations. The more you know going in, the better your odds.
2. Identify the people
This step has three parts. First, your research should reveal who your nonprofit will directly help, the people who are worse off because your organization doesn't exist yet. That's group one: the people you'll serve.
The second group is the people who will help you. Make sure this isn't simply a list of friends and relatives. However generous their time and energy, they may not be the people who can move your mission forward the most. Look instead for volunteers in a related field or genuine subject-matter experts. For the parrots, that might mean passionate pet-store staff or members of relevant online communities.
The third group is the people already doing related work in your area. They may not be able to give you time or money directly, but they can be invaluable allies and sources of hard-won knowledge. So the three groups to identify are: who you'll help, who will help you, and who is already in the field.
3. Identify your action
This is one of the most crucial steps in the entire process. Most of us can rattle off society's needs and produce long lists of people. Step three forces you to name the specific action you'll take to meet that need.
Be as precise as possible. Many people use the S.M.A.R.T. framework for defining an action: Specific, Measurable, Attainable, Relevant, and Time-bound.
Your action can't simply be "feed the parrots." How will you feed them, with what, and when? Following the SMART formula gives you something concrete to communicate to donors, volunteers, and anyone spreading the word.
Here's an example: "I will feed homeless parrots once a day using grain donated by local pet stores. I'll feed them 100 yards from the public fountain where they gather, freeing the area for people and training the birds to spread out. My first feeding is planned within 60 days."
That action has specific parameters, so you can bring local people on board and negotiate issues down the road. It's measurable, so you can show donors you're hitting goals. It's attainable, so everyone feels the win. It's relevant to both your mission and the community, and it's time-bound, giving you deadlines to keep momentum. Identifying an action is what turns your nonprofit from an idea into a real organization ready to file paperwork, accept donations, and start doing good.
Steps four through six
Now that you've identified a need, the people involved, and the action you'll take, it's time to file the paperwork that makes everything legal and above board. You can never be too careful here. For some founders it makes sense to bring in an advisor with filing experience, or to hire a third party. Either way, file your paperwork before you accept a single dollar or put your name on anything.
4. Register with your state
This step matters legally and financially. Without proper registration you can run into trouble for doing your work, and even more trouble for asking for or accepting donations.
Before you file anything, you'll need a name. This is the name your organization will be known by legally, and often the basis of your website, so research it and confirm no existing organization or company already uses it. Keep it simple; the more elaborate the name, the harder it is to explain what you do.
The exact process differs by state, so there are two broad routes. The first is to search for how to file as a nonprofit in your specific state, clicking only links whose address ends in ".gov." The page you want is usually your Secretary of State, based where your nonprofit will physically operate. This route means more legwork, but you'll pay only the fees your jurisdiction actually requires.
The second route is to use an online filing service. These third parties charge a flat rate to set up your nonprofit and file the paperwork for you. It costs more, but it's a sensible option for anyone who would rather focus on the mission than the forms.
5. Bylaws and articles of incorporation
This is sometimes bundled into step four. Bylaws and articles of incorporation are legally required at some point for any organization that wants certain legal protections. This paperwork formally establishes your nonprofit as a separate legal entity from you and anyone who works with or for you.
You'll find plenty of free templates online for both, or you can lean on a filing service. In fact, many of the companies that handle your state registration will also prepare your bylaws and articles of incorporation and file for your EIN, which is the next step.
6. EIN and bank account
An EIN is an Employer Identification Number, essentially a Social Security number for your nonprofit. Every organization, for-profit or not, needs one so the federal government can track money moving in and out.
You'll need an EIN to open a checking account, and you absolutely want a separate account for the nonprofit rather than mixing funds with your personal money or another business. The reasons are numerous and all important. It lets you show anyone, in black and white, that your money and the organization's money are kept apart. Every donation flows through the nonprofit account, and every expense, whether it's parrot feed or coffee for volunteers, comes out of it too.
An EIN also helps if you later apply for 501(c)(3) status or expand your work beyond your original state. In short, you can start feeding the parrots without an EIN and bank account, but you'll want both sooner rather than later.
Steps seven and eight
With your plans in place and your paperwork filed, it's time to get to work. You'll want to understand the compliance rules that apply to you, build a website or another online presence, and get boots on the ground.
7. Compliance and online presence
Depending on the work you'll do, you may face additional paperwork and brick-and-mortar licensing, or you may focus almost entirely on your online presence.
These decisions flow from what you identified in steps one through three. If you need a physical building downtown where people can bring injured parrots, you'll need to look into city and state ordinances for business and occupancy taxes, animal-handling permits, and food and health-safety requirements. If your need is simply to gather once a day in an area crowded by parrots, a simple website or social media group may be enough to get started.
Whatever the case, stay compliant with state, local, and federal laws that apply to your model. This is where the third group of people you identified really pays off. Those already working in animal outreach, or genuine parrot experts, will be far more helpful than any other resource.
8. Do the work
The planning, paperwork, and thinking are done. Now you get to turn good intentions into good work, and only you can do it. This really is a step in how to start a nonprofit, because it's what separates dreams from reality. Write down your actions, keep them S.M.A.R.T., and as long as you keep doing the work, your organization is real.
Started but never finished
This guide is only meant to get you moving; there will always be more work to do. We hope you someday solve the homeless-parrot problem entirely, but there will always be a need for good people doing good things. So our real hope isn't just that you launch your current nonprofit, but that you keep finding ways to start new ones.
FAQs
How much does it cost to start a nonprofit?
Costs vary widely by state and approach. Doing the filing yourself means paying only your state's registration fees, which are typically modest. Using a filing service or applying for federal 501(c)(3) status adds further fees. Budget for state registration, the IRS application if you pursue tax-exempt status, and any local permits your activities require.
How long does it take to start a nonprofit?
State incorporation can often be completed in a few days to a few weeks, depending on your state and whether you pay for expedited processing. Obtaining federal tax-exempt status takes longer and depends on the IRS's review timeline, so start that process as early as you can.
Do I need 501(c)(3) status right away?
No. You can incorporate and begin operating without it, but 501(c)(3) status makes donations tax-deductible for your supporters and opens the door to many grants. Most organizations pursue it once they're up and running.