Another in a series of articles related to association management selected from our reading list by:
Robert O. Patterson, JD
CEO/ Principal
The Center for Association Resources, Inc.
Nonprofit Organizations get tax breaks, may raise funds, have inexpensive marketing available to them, and through partnerships with organizations can raise money for needy organizations, clubs, or people.
Nonprofit organizations, also known as NPO’s, are generally organizations that raise money for charitable needs or are government agencies. These organizations are run as a corporation, and are overseen by the district attorney and the Secretary of State. To qualify to be a nonprofit organization, it must be either a charitable organization, raise money for a charitable organization, a trade union or association, and public arts associations. Government agencies are also considered nonprofit organizations, but are included in a different category.
To form a nonprofit organization, decide what type of business is desired, who the charitable organization is that will be benefiting (if it’s not the same organization), and who will be leading the business. If the charitable organization is a separate business, check with your state to see how much needs to go to the charity. Next, decide on the board of directors and establish by-laws. Finally, incorporate your business with the Secretary of State. Your state should have information for nonprofit filing provided on the internet.
After filing, the state will provide you with an employment identification number. This number shows that the organization is a NPO and can be used in fundraising. It’s important at this time to register with the Office of the Attorney General. This will allow the NPO to receive tax exemptions. File with the IRS as well as state and local tax boards to get the tax exemptions due to NPO’s.
Managing your Nonprofit Organization entails keeping detailed information and records. These include fundraisers that must be reported to the DA’s office and Attorney General’s office, volunteer records, income reports, tax and exemption reports, by-laws, board meeting notes, etc. For more information on managing NPO’s, check with USA.gov or your state government organizations.
There are several fundraising types available to nonprofits. Direct fundraisers are those fundraisers that the NPO’s run directly from their business. Examples are fundraising events, bake sales, and rummage sales. NPO’s also have good chances of getting grants. Most NPO’s survive on grants from contributors. Finally, the organization may get sponsored by other businesses and get direct donations from social networking sites, foundations, and people interested in the cause or charity.
Although it may be strenuous to get the NPO started, the results and rewards that it brings to many are very worth it. Many times volunteers can make up for the lack of employees, donations can be given to organizations that really need it, and a need can be met. Even small business NPO’s can be very rewarding to many.
non-profit, NPO, organization, business, association, small business, grants, donations, fundraising, charity, volunteers,The Center for Association Resources
