Get ready for extensive paperwork.
It remains a fairly complicated process to open a charity organization and acquire non-profit status. You will have to obtain money to pay for the initial expenses, gain approval from various regulatory agencies, purchase the necessary equipment and prepare a variety of documents. An attorney can help you accomplish some of these steps. It is important to formalize a detailed plan before taking any other action. Otherwise, you might waste considerable time and money unsuccessfully attempting to open a charity organization.
Instructions
1. Plan the charitable organization's strategy and goals. It is helpful if the charity has a general purpose you can explain in one sentence. Decide upon a name which is not too similar to that of any other organization. If you have difficulty choosing a name, ask family members or friends which potential name sounds best.
2. Complete the forms necessary for local, regional and federal government approval. These vary depending upon your location. For example, the District of Columbia requires new charities to complete an "Articles of Incorporation" form, fill out the FR-164 and FR-500 tax forms, and apply for a Basic Business License. Local zoning issues also may apply, requiring town or city approval.
According to the Internal Revenue Service, many new charities must complete Form 1023 and Notice 1382 to apply for tax-exempt status with the U.S. federal government. However, some church-connected and small charity organizations are not required to apply. Most of the above-mentioned approvals involve application fees.
3. Activate a new telephone number/line for use by the charity organization. You will want a dedicated phone number to display in websites and fundraising materials.
4. Open a bank account in the charity's name, using the new telephone number. This will allow donors to write checks and money orders addressed to the organization. It also helps separate personal and charitable transactions.
5. Purchase equipment and supplies, after receiving approval to open the charity organization. You will probably need items, such as computers, printers, stationary, telephones, postage scales and filing cabinets. Some charities use gifts or promotional items in fundraising. Your specific goals may require additional equipment.
6. Promote the charity organization to inform the public it is now open to accept donations and conduct charitable efforts. Use postal mail, Internet advertising or local radio. Consider employing a writer to develop persuasive fundraising material. Create a logo for the organization to use in promotional documents.
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