First educate yourself on what exists in your community and find out who has attempted to address your specific issue. Ask questions, talk to community leaders and explore current activities and resources to avoid duplication of services.
Thoughtful Planning to Meet Community Needs
Nonprofit organizations develop from a seed—a concern about which one or more individuals feel strongly. This sense of need and the belief that action by a few individuals can make a difference is crucial to nonprofit organizations. Therefore, the first question to ask is, "Is there an unmet need?" and its corollary, "Can we make a difference in addressing that need?" It is essential to answer these questions before undertaking the arduous process of establishing a nonprofit organization.
Nonprofit organizations are formed in response to community needs. While the need may be evident to you and your colleagues, it is necessary to document it. Often an initial list of problems and needs is based on the subjective assessment and personal experiences of the planners.
Objective data is needed to confirm these assessments and to ensure that your program addresses actual needs. It is also important to survey potential users of your service to ascertain their perceptions of the need and their willingness or interest in the proposed service. Needs assessments should be conducted by gathering both quantitative and qualitative information.
Sources for quantitative information include census information and government reports: these reports might contain information such as basic demographics, income, educational levels, incidence of crime, and health and housing information. Qualitative information can be obtained from community surveys and discussions with potential constituents. A feasibility study should next be conducted to gauge the likelihood of success of your program. This should include identification of potential funding sources.
The study is followed by a business plan which details your market analysis, management strategy and management team. A good plan should also include analysis of the economic, political and social climate in which your organization will be operating. Your local library should have more information on writing clear and effective business plans.
Other Service Providers
Because of limited community resources, it is critical to avoid duplicating existing services. Many groups have believed their issue was unaddressed; in reality others were already providing the service. Perhaps they did not ask the right people of perhaps the provider was not well known, but their search did not yield the information on the other providers. If you find another organization providing a similar or identical service, you should ask: Are they successful? Can we help them? Would they want to work with us? By working together, is it possible to make a greater impact on the problem?
Information about other providers is critical both internally and externally. Thus, it is recommended that you consult with area leaders of the community. Helpful resources for this type of information include: United Way "Help Book"; IRS blue book; Book of Associations—Key word index. Check your local library for information.
Alternatives to Starting From Scratch
You can achieve your vision without starting a new organization. Here are five alternatives to starting a nonprofit in Georgia:
1. Study the list of nonprofits already active in the same area and join their efforts as a volunteer, a board member or staff member.
2. Analyze the list of nonprofits already active in the same area, identify the three organizations that have missions that are most compatible with your ideas. Meet with them to explore creating a special project or initiative--and negotiate your involvement.
3. Explore the list of national organizations in the area of your interest, and see if a local chapter is needed in your geographic area.
The following Web sites contain searchable online databases of local, state, and national nonprofit agencies to assist you with suggestions one through three.
Metro Atlanta United Way (search by "category list")
United Way 211 of Central Georgia
GuideStar (select "more search options" enter "city" and "state" fields).
4. If your effort will be local and small, consider forming an unincorporated association or club and have meetings and activities, but skip the reporting requirements. Bypassing reporting requirements is an option for groups with annual budgets under $25,000.
5. If you are considering creating a group to finance activities or needs of others (scholarships, family emergency funds for a specific population, etc.), explore the possibility of getting sponsorship for the fund by one of Georgia's community foundations:
The Community Foundation for Greater Atlanta Inc.
Community Foundation of Central Georgia
Community Foundation of Northwest Georgia Inc.
Community Foundation of the Chattahoochee Valley
CSRA Community Foundation Inc.
The Gwinnett Foundation
North Georgia Community Foundation
Ten Most Common Mistakes Made When Starting a Nonprofit Corporation
Source: About.com
1. Poor Initial Research
While having passion for your cause is necessary, conducting research is essential to determine if a need exists for a new organization to address it. Can the need be addressed if you partner with an existing organization? Do you have any idea of the operational aspects of a nonprofit organization? Would the organization qualify for tax-exempt status? Read everything you can before starting.
2. No Business Plan
You will quickly discover that a nonprofit organization is a business. In order to survive, it must have at least as much money coming in to the business as it has going out in services and expenses. Have you written a realistic business plan?
3. Not for a Charitable Purpose
Sure it's a great idea, but does it qualify as a charitable cause? The basic definition of a tax-exempt 501(c)(3) nonprofit organization is one that serves the public good and is organized for religious, charitable, educational, scientific or literary purposes. If you are unsure, you should research similar organizations for information.
4. Failure to Register
Registration of nonprofits is required in most states. Some people think they don't have to register—they are "nonprofit" so they really won't get in any trouble. Wrong! Registration protects citizens of states from becoming victims of fraud, and registration of charities, paid solicitors and fund-raising counsels helps to maintain a responsible environment for charitable work.
5. Failure to Keep Good Records
As a business, the organization will be required to file various reports of business activity. You simply cannot make things with the notion that you will not be held responsible. If you are not already organized, you should learn to be so before starting a nonprofit.
6. No Funding Plan
Raising money is a tough and competitive requirement of most nonprofit organizations. If your experience with raising funds is mostly through attending a dinner, golf outing, bake sale or car wash, you need help with raising funds. Without funding, there is no way to sustain a nonprofit organization.
7. Not Complying with IRS Statutes
You must file a federal tax return, and you do need to learn what the federal government requires of nonprofit organizations. You receive great tax breaks by being a 501(c)(3) nonprofit. Considering the benefits you receive, complying with reporting is a fair deal. To help you, the IRS has a Web site dedicated to exempt organizations.
8. Misjudging Time Requirements
Running a nonprofit is not a hobby. If you think that you can run a nonprofit organization part time, you need to have others help you or you will likely fail. When you consider that your nonprofit organization is a business that is subject to filing and reporting requirements in addition to service work, you quickly realize that running it requires a full-time commitment.
9. Not Building an Effective Board
Leadership is critical and an effective board is one that is composed of talented, dedicated and working people. Your board should add integrity to your work, offer access to funding, provide some of the expertise you need and be dedicated to your mission.
10. Not Investing in Professional Talent
At a minimum, you will need a lawyer and an accountant to help you get started. They don't need to be on staff; they can be retained on an as-needed basis. The same is true for fund-raising counsel. There are a few critical areas that will make or break an organization, and you will be better able to survive by paying a professional only for the time you need rather than paying an inexperienced worker to muddle through a project. Having certain systems set up by experienced professionals will save money in the long run.
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