How to Build a Successful Nonprofit in 8 Steps

Nonprofit organizations are often the glue that keeps our communities together. They cultivate and nurture compassion for others.

Communities need nonprofit organizations!

In case you haven’t figured it out already, nonprofit leadership isn’t a walk in the park. But if you have the ambition and the tools, starting a nonprofit can be a deeply rewarding experience for everyone involved.

These 8 steps will walk you through how to set you and your board of directors up for success.

1 - Research

As with any new project, start by researching the issue that you plan to address. Search for similar nonprofits in your community, state, and nationwide. Take note of what seems to be working well or not working at all for the others - learn from their mistakes!

You may not think that nonprofits have competitors - surprise! You do.

They may not be competitors in the traditional sense, but there are over 60,000 nonprofits in Illinois alone and grants cannot fund everyone. Consider what will make your nonprofit special.

2 - Define it

Take the time to focus and define the mission and vision of your nonprofit early on.

Decide what you will do to serve your community and how you will do it. Fine tune it and get objective feedback to help you shape the language.

3 - Name it

Names are important!

Don’t just slap a name together because it sounds clever - do your research! A basic Google search is your friend here… Make sure that your name isn’t taken and that it won’t be easily confused with another. Think about your website domain, your social media pages and handles, and your email address. How do possible acronyms sound? 

These are basic tips, but you don’t want to catch yourself in an awkward situation later on!

4 - Make a Plan

You might be starting a nonprofit, but you NEED a business plan. A business plan isn’t necessarily required, but a well thought out plan for how you will achieve your goals will make all the difference in the success of your nonprofit. Not only will you be crystal clear on what you need to be successful, but you will be better equipped to recruit and retain your board of directors.

5 - Recruit Your Board

Establishing your founding board of directors is one of the most important parts of building your nonprofit.

Your founding board will have a huge impact on your success down the road.

YOU will play a crucial role in guiding your board through developing your nonprofit’s bylaws - so take charge! Your bylaws determine how directors are elected, how long they serve, and how to remove them. In addition, you will need to determine who will serve in each of the required officer roles: President, Vice President, Secretary, and Treasurer.

6 - Secure Initial Funding

Funding is an obvious must… but be sure to plan how your initial funds will be used. You will need about $1,000 for startup costs. Beyond that, your initial funding amount will depend on your particular nonprofit. Some will need more than others, but ALL nonprofits need funding to get started.

There are plenty of grant opportunities available nationwide. Find grants that align with your objectives and apply!

7 - Appoint a Registered Agent

A registered agent receives all of the legal and tax documents on behalf of your nonprofit. You are required by law to select a registered agent. Choose wisely and consider that this person will need to check their mail daily and be available during business hours should a situation arise that needs prompt attention.

8 - Submit Forms

When you are ready, you will need to submit all of the official forms required to start a nonprofit in your state.

Fill these out with care or you will risk being rejecteD.

Your board of directors can help you prepare and file the following documents:

• Articles of Incorporation

• Federal 501(c)(3) tax exemption application

• State tax exemption application

If you complete all of these steps, you are on the road to building a sustainable and successful nonprofit! The key is to let your passion drive your vision WHILE committing to be an effective leader in your nonprofit and your community.

For more tips on how to be an effective nonprofit leader, check out my tips on how to position your board of directors for success!