Ovarian Cycle, has raised nearly $300,000 in just three years, she insists, “We’re not talking about a well-funded, well-oiled machine.” It almost went under the first year, after Diamond guaranteed to give away 95 percent of the funds raised without thinking about the bills stacking up for daily operation of the organization and its signature event—an indoor cycling ride, every spring. Now, Diamond says she tries to “give away as much as possible,” but won’t dip below 85 percent.
· Write a business plan. The California Association of Nonprofits recommends creating a business plan with details, including the organization’s mission, funding sources, activities, and leadership. For information on writing a business plan check out these articles: proposalwriter.com/smallplans.html and http://sbinformation.about.com/b/a/008904.htm.
· Realize that it’s going to be a time commitment. Diamond estimates from the fall to spring, when she’s planning for the big event, she puts in the hours of a fulltime job. Although she’s participated in other charitable events, she says, “nothing prepares you” for the time you will spend on your own nonprofit.
· Florence Green, executive director of the California Association of Nonprofits, had some helpful hints: Consider whether your idea would best be realized as a not-for-profit or for-profit organization. The advantage of creating a non-profit is securing tax exemption status. 501(c)(3) organizations also can receive a charitable deduction for contributions.
· Realize that you will be giving up control. Green notes that you give up ownership of your idea when you become a nonprofit, because the project now belongs to the people of the state where you’re located and those being serviced by your organization. Additionally, your board of directors will decide the direction and purpose.
· Determine what kind of nonprofit organization you should become—charitable or public benefit with scientific, cultural, or educational purposes; mutual benefit corporation such as a trade association or social group; or a religious corporation.
· Consider the membership structure and how involved members will be in determining the nonprofit’s direction.
THINK TECHNOLOGY
Figuring out from the start how to use technology can result in greater efficiency and more effective ways of reaching supporters and those they serve, says Jack O. McMillan Jr., CEO of
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