3 Questions To Ask Yourself Before Starting A Nonprofit

Passion. Experience. Goodwill. Value. Legacy. There are many reasons why individuals, corporations, or even other nonprofits, form a nonprofit organization. Most individuals involved in starting nonprofit organizations have a strong desire to help others but not a clear understanding of the amount of work that goes into forming and managing one. It can require a lot of thought, time, effort, patience, and money to keep it running.

Before we go any further, we want to encourage you to reach out to Nonprofit Support Network if you find yourself interested in starting a new nonprofit in Muncie or Delaware County.

Does a similar nonprofit exist? How will my nonprofit differ?

Researching is the first step in creating a nonprofit organization. Write down short phrases or descriptive words you want to use to describe your potential nonprofit. Brainstorm what you hope to accomplish with your nonprofit and how you intend to do it. Identify key phrases to use on an internet search to find any organizations with similar names or phrases. Where are they located? What do they do? How are they supported? What is their staff like? How are they similar to what you envision? How are they different?

Are there other nonprofit organizations already doing similar work? With more than 28,000 nonprofits located in Indiana, chances are there’s already an organization dedicated to solving the same community challenge. Connect with friends or colleagues who are already in the nonprofit sector in your community and share your ideas. If you find that there is a similar organization, decide how your nonprofit will differ, or possibly complement those already in the field. 

This research step is also the time to decide if creating a new nonprofit is even the right solution. A partnership or collaboration might be more impactful.

Is there a solid plan for funding the organization?

It goes without saying that funding is just as crucial as the passionate people behind the nonprofit organization. The organization needs the resources to be able to offer meaningful programs for the community. A detailed business plan will help guide the conversation on what funds are needed to start the nonprofit and also keep it operating for years to come.

You may start your nonprofit with no funding needs because you are volunteering your time or your corporation is donating the needed supplies or materials. You should still keep track of you and your volunteers’ time and donations received. This will help you understand what resources it takes to operate your nonprofit.

Who will be on the board?

A board of directors manages nonprofits. Basically, nonprofit boards serve as a formal structure to hold nonprofits accountable to the public, since they don’t have actual owners. The board of directors is accountable for overseeing the organization's performance. A hardworking and trustworthy board of directors is essential. When forming your nonprofit organization, recruit board members that are diverse, have the same passion for the cause as you, and have the time to commit.

If the above questions made you pause, or reconsider your idea, Nonprofit Leadership Center has a great list of 5 alternatives to starting a nonprofit organization.