Nonprofits are a great way to give back to your community and serve the people around you. However, with so many in the world, it can be hard to decide if you should start your own nonprofit. To learn more, read Chisholm Law Firm’s blog.
What is a nonprofit?
Before discussing whether or not you should start your own nonprofit, it’s essential to define it. By definition, a nonprofit is an organization that someone starts to advance a particular cause – but not to make a profit.
The United States has various nonprofits, each with its specific mission. From grassroots organizations building community gardens to global institutions funding research, there are many ways you can serve your community.
With so many organizations globally, it can be hard to know where to begin. In this blog, we’ll cover whether you should start your own nonprofit, and then go over the benefits and the steps to start it.
Should you start your own nonprofit?
Answering whether or not you should start your nonprofit is a difficult one, mainly because it is so personal. Do you feel called to start your own organization? Are you passionate about serving your community?
Before starting your own nonprofit, we recommend asking yourself the following questions:
- Why do you want to start a nonprofit?
- What is your mission?
- How will you accomplish your mission?
- What is your nonprofit’s elevator pitch?
- Is your nonprofit practical and viable?
- Are you going to lead the nonprofit? If not, who is?
- Who is going to manage the nonprofit?
- What is your budget?
- How will you pay startup expenses?
- Will you comply with the IRS?
While we can’t answer these questions for you, we can give you the information you need to make a sound decision. Let’s work through the benefits and how to start your own.
What are the benefits?
Starting a nonprofit comes with many benefits, from personal fulfillment to limited liability. Let’s work through some of the main advantages of starting your own nonprofit.
While it can be hard to quantify your personal fulfillment, it’s a crucial benefit. Starting your own nonprofit enables you to serve your community best. It gives you the satisfaction of knowing that you are bettering people’s lives.
Even though nonprofits and for-profits differ in many ways, they both provide you with entrepreneurial skills. Starting a nonprofit helps you foster your problem-solving skills and increases your resiliency.
Nonprofits have considerable tax benefits. Depending on your 501c3 status, you may be free from sales tax in your state. Additionally, donating to a 501c3 nonprofit gives you (and other donors) the opportunity to deduct some money from your taxes at the end of the year.
Legal liability is something that many businesses struggle with, especially when they are first starting. However, nonprofit founders have limited liability from lenders and other stakeholders, which gives you the freedom to experiment as needed.
Leave a Legacy
Starting a nonprofit allows you to leave a legacy for many years to come. By starting your own nonprofit, you create an organization that will continue to serve your community – even after moving on.
How to Start Your Own Nonprofit
Once you’ve decided, the best time to start your nonprofit is now! You’ll need to find the time to start and set aside money for startup costs. Additionally, you’ll want to start mapping out your yearly goals.
We recommend speaking with an experienced nonprofit attorney who can help you set up your nonprofit correctly. It may be a more costly investment, but it will save you time and money.
Finally, you’ll need to start recruiting volunteers and planning events. You may benefit from starting small and getting involved in your community! Talk with other nonprofit leaders about their journeys, and see if they’re willing to help you.
Speak with an Expert
Starting your own nonprofit is a personal decision that only you can make. Still, we are happy to provide you with all the information you need. If you’re interested in learning more, you may benefit from Chisholm Law Firm’s free consultation.
Chisholm Law Firm has helped thousands of people start and grow nonprofits that impact the world. If you want the best for your nonprofit, look no further than Chisholm Law Firm. Our clients have a 100% success rate for nonprofit and trademark filings*.
You can rest assured that your nonprofit is in the best hands and that we’ll get everything done right the first time. Call us today to schedule your free consultation.
It shouldn’t be this hard to be a superhero.
*Past results do not determine future outcomes.