Nonprofit Start-up Tips

By: Lori Johnston (View Profile)

TechBridge, an organization that serves nonprofits.

“There’s some appropriate use of technology by virtually any nonprofit,” he says. “It’s hard for me to envision any organization that doesn’t need to foster collaboration, doesn’t need to foster ease of reach for their volunteers, their donors, for their board.”

So in your business plan for the nonprofit, include a technology plan. Figure out where you can use technology and what type of expenditures you may need to plan for upfront to do so. McMillan recommends asking yourself:

·    Am I really ever going to be big enough to have my own information technology division?

·    Do I want to invest in things like server capacity or building information technology staff?

With those answers in mind, you’ll be able to find certain computer applications to support your needs, whether it’s something like Microsoft Office with Excel, Outlook and Word programs, or if you need more in-depth donor management systems that can track giving. Or you may want to use audio, video, and Web-conferencing tools to carry out your worthy mission.

THE NUTS AND BOLTS OF MAKING IT OFFICIAL

These are some of the necessary steps to officially start your organization, according to the Georgia Center for Nonprofits. Be aware that the requirements may vary from state to state, so you might want to also check out the Foundation Center, which provides general answers to your FAQ.

1. Reserve the organization’s name with your secretary of state.

2. File articles of incorporation with the secretary of state within 30 days of reserving your organization’s name. You’ll have to do this annually.

3. Publish a notice of intent to incorporate with the county newspaper of record listed with the county clerk’s office.

4. Apply for the federal employer identification number (EIN) through the IRS.

5. Prepare the organization’s by-laws.

6. Conduct an initial meeting of the board of directors (the size could vary, but most organizations have 12–18 members).

7. Apply for federal tax-exempt status through the IRS (within 15 months of the date you filed your articles of incorporation). The application fee is $150 (if the organization anticipates annual gross receipts of less than $10,000 each year for the first four years) or $500 (if the organization anticipates annual gross receipts of more than $10,000 in the first year).
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