- 1). Define the vision of your NPO, and develop a mission statement. A vision statement provides a vivid description of the image of the NPO. The mission statement clarifies the vision and tells why the organization exists. Periodically review the mission statement and make necessary revisions. The mission statement also informs key constituents how your organization will benefit the community.
- 2). Recruit board members. Ideally, each board member has professional expertise that is beneficial to the nonprofit. A human resources executive can give valuable input on hiring paid and volunteer staff. A CPA board member can advise on the financial structure and statements necessary to stay within the budget. Board members should also make financial contributions and help with fundraising efforts.
- 3). Write the articles of incorporation and bylaws and file them with your local secretary of state office. The bylaws are rules that dictate the governance of your NPO.
- 4). Apply for 501(c)(3) status with the IRS by completing Form 1023. Your nonprofit receives tax-exempt recognition from the IRS through this status. The IRS begins processing applications upon receipt. Errors and missing information could delay the process, so read all instructions carefully prior to submitting the application. Contact your state and municipal governments to determine the policy and procedure for licensing and tax-exempt status.
- 5). Create a strategic plan for programs and services. Saving the world is admirable, but not feasible for one NPO to accomplish. A strategic plan maps out specific actions, and describes how those actions are implemented. Develop plans for short, medium and long-term objectives. A plan identifies the limits of your NPO, i.e. budget, government regulations; sets parameters for activities; and evaluates the effectiveness of programs to help with future plans.
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