Nonprofit Incorporating - The Business Plan

INTRODUCTION

This article has been prepared to give guidance to people who are considering starting a
not-for-profit corporation. It is not intended to be a full and detailed step-by-step manual
about starting a nonprofit corporation, however. There is a list of Federal forms and
booklets at the end of this document. Religious groups that are considering the
development of a faith-based nonprofit organization will also find this article timely.

The purpose of this paper is to bring into question the reasons why someone wants to
start a nonprofit corporation, to discuss the necessary processes to do that and to provide
Internet and other resources for further work in the development of the corporation. For
some readers this will be a handy introduction to starting a nonprofit group. To others, it
may be a cold shower of reality that it requires a lot of work and commitment to start and
maintain a nonprofit business - and it is a business.

As you develop your NPO concepts, remember that the organization will have to meet
legal standards, ethical standards and other forms of accountability. You will find links
to a number of standards that are being developed and strengthened at the web site of
AVAGARA, http://www.avagara.com/nonprof/accountability/, and others listed below.
You will find that some of these standards will help you in the development of your
group. There is increasing pressure from State Attorneys General, the Internal Revenue
Service (IRS) and foundations, corporations and government to assure quality return from
public charities and a clear sense of goals and objectives. Foundations and other grantors
are using the Internet to ascertain the viability of organizations before providing grants.

I strongly advise that any person starting a nonprofit to talk to an attorney about the
process. There is a brief discussion later about finding an attorney, page 23. As you take
the next step in looking at beginning a nonprofit organization, I wish you every success.