Hi, I would like to start a nonprofit organization or business that serves homeless veterans, women and children. However, I really need some guidance, support and direction on getting started, do I need a business plan, courses and workshops to start attending, etc? This has been a desire and passion for me to do for some time, so I would be looking at getting started soon!
Answers
The Center for Nonprofits is a great source for this.
Also contact me Reggie Dunbar II at
770-912-7499 for additional information.
You can have both a for-profit and a non-profit, each with a somewhat different mission. Having a non-profit would allow you to accept donations which are tax deductible for the donor. I assume that's your reason to look into establishing a non-profit? As pointed out above, that's mostly a matter of doing the paperwork and paying the filing fee ($400 - $800) and thereafter filing an annual non-profit tax return. Practically speaking, it would also involve setting up a new marketing / branding channel and separate bank accounts and books. Depending on what state you are in, your for-profit branch may also be a benefit corporation, which is a pretty simple matter of revising your corporate by-laws to notify all stakeholders that the company will pursue social missions as well as profits. http://benefitcorp.net/. After at least a year in business, you can apply for certification as a B Corp - not required but good for your brand. I definitely recommend putting together a business plan for either/both entities. If nothing else, this will help you think through your course of action, and can help you avoid some surprises. Best of luck!
Good morning, Risa.
Thank you for your service, and for your desire to continue to serve.
To create a not for profit business you will need to create your vision and mission for the organization. I suggest that you do that first and then go to www.irs.gov and get a tax ID number, This identifies your company with the IRS and becomes a basic piece of your administration. While in the IRS website download the forms for a 501c3. It is a rather long document with a lot of questions, but it will help you understand what is needed to qualify with the IRS as a not for profit business.
The next step is to write the bylaws for your company, which is like a business plan and an organizational plan in one document. There are several on line sites that provide generic forms for this. Just Google Bylaws for not for profit and you'll get pages of possible help.
One part of the bylaws is the description of your Board of Directors and how they are chosen and what their responsibilities are. Board members cannot be paid to be board members. They can be hired and work for the company, but they cannot be paid to run the company. One of the key members will be your Treasurer. You will also need a good tax accountant. They should not be the same person, but they need to work together.
With your Vision and Mission statements, your Bylaws, and the completed IRS form, you are ready to submit to the IRS for their authorization to operate as a not for profit. This certification can take some time. A friend got his authorization for a food pantry in 74 days, but another colleague waited more than 180 days.
In this entire process you should also file with the Secretary of State of your state to incorporate your business. Whether you do this before or after doesn't matter much. If you do it before you have the IRS authorization, you will create your corporation and then when you receive your IRS authorization, you will amend your incorporation to make you a not for profit at the state level. This is important if you have to pay state taxes as a small business. Each state is different in how they handle that function, but you can find out those rules when you incorporate through your Secretary of State.
Think about how you will fund your business. Where will the money come from? The U.S. Department of Labor has money for rehousing homeless female veterans and veterans with families. Some states have grant money available for similar uses.
Good luck. I ran a project through another business usin the DOL money and it was a wonderful experience.
Risa-
Thanks for your service!
I recommend you take a look at a similar organization in Central Florida called A Veterans Community.
I am sure if you reach out to the team at aveteranscommunity.org, they will be glad to give you some advice and lessons learned to help you get started.
Thanks again for your service and for your passion to help homeless veterans!
Deb
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