QUESTIONS TO ASK YOURSELF BEFORE INCORPORATING

QUESTIONS TO ASK YOURSELF BEFORE INCORPORATING

Take the first question below, "What is the purpose of your nonprofit?" (It is really not
yours, you know; it belongs to the board, not an individual) Your answer may be to save
whales, to overcome AIDS, to work with troubled youth or to have a community
development corporation. Go beyond those answers. Review and work on the rest of the
questions and come back to the first one and see if you have some additional purposes or
reasons for starting a nonprofit.

1. What is the purpose of your nonprofit? Why are YOU starting a nonprofit? Why
are you starting THIS nonprofit? What is your vision, your mission? 2. Can you partner or join with another nonprofit organization performing the same
or similar mission without incorporating another group? How will you avoid
duplication of work?
3. What are your qualifications and experience to open and operate this not-for-
profit business?
4. What kinds of activities will your nonprofit involve or sponsor? Who will be
responsible for these activities?
5. Will you be providing a service? Will that service be limited to certain
customers/clients/others? Who? How? Why? When? What will be the proximity
of your office and service to your customers/clients/others?
6. Will you have membership? If so, who will be eligible and what duties,
obligations and authority will members have?
7. What will be the name of your organization? Have you reserved that name with
the State?
8. Where will you be opening and operating this nonprofit?
9. Who will you have on your board of trustees and other people providing money
and assistance? Why will you have them on the board? What part will they have
in decision-making? What part will they play in the organization?
10. What are the advantages and disadvantages to incorporating THIS organization?
Make two columns and list both advantages and disadvantages. Talk to others
who are working with you to add to both lists. Do the advantages outweigh the
disadvantages?
11. What are your resources? What are your talents, experience or education to
operate this organization?
12. Will you have paid staff and personnel? Will you have volunteers? What are
their responsibilities and authority? What roles will they play in the organization?
What are the responsibilities of the organization to its employees and volunteers?
Who will handle those responsibilities?
13. What is your experience in managing a nonprofit organization or other endeavor?
14. Will your organization or personnel require licenses, registrations, approvals,
certificates or permits? Will your staff require licensing, criminal background
checks, or drug testing?
15. Do you own equipment or other forms of property? Do you plan on acquiring
property and equipment? Will you purchase or lease the equipment and property?
How will you acquire these resources? How will you pay for renovations,
furniture and signs at an office? How will you pay for the continuing
maintenance and improvements?
16. How and where will you keep supplies, stock and inventory?
17. What are your financial needs? Does the organization have a bank account? What
are your financial skills? What kind of grants or funds will you need? How much
money will you need to begin to open this organization and sustain it - for 1 to 6
to 12 months, or for three years? Where will that money come from?
18. What potential liability does this nonprofit have? What insurance protection will
you need?
19. Have you received any training, education or technical assistance to operate a
nonprofit business? If you have not received any training, education or technical assistance, will you need that kind of help? Where will you find that help? How
will you pay for it?
20. Have you developed a business plan? Do you know what a business plan is and
why you need one?
21. How will you keep financial records and other important records such as
contracts, orders, wage payments, vouchers, bills of lading, bank accounts, tax
information, personnel records, annual reports, audits and so on?
22. Are there other not-for-profits or for-profit groups - competition - like yours in the
community where you will open? How and why is your nonprofit different than
they are?
23. What are the major impediments for you to start this organization? What are the
barriers? How will you overcome these impediments and barriers?
24. How will you advertise or market the nonprofit's service? How will you get
customers/clients/supporters? What will be your niche or specialty in the
community you serve, the market place?
25. Have you or other members of your family and friends operated a business or
another nonprofit? Will they help you in this enterprise? What will that help be?
26. Does your group plan on dissolving after a period of time or is it a long-range
project?
27. Do you believe the organization will be involved with lobbying, advocacy and/or
political activities?
28. Do you have the right stuff to create, maintain and sustain this dream?