There are many reasons to start a charity, but chances are you have a cause that’s dear to your heart and you want to do something about it. Charities can be an excellent way of raising funds and you can increase the support you receive by making it official. If you’re looking to start a charity, there are a few things you need to consider that can make it a bit more stress-free.
Define the purpose of the charity
The first thing you need to consider when starting a charity is why you’re doing it. A strong story telling the motivation behind your charity is key to attracting more supporters. Clearly define what issue your charity will address, how it will help others, and what goal you aim to achieve. You want to appeal to the heartstrings of those going through similar circumstances to get donations and have people work with you.
Ensure you hit all the legal requirements
As part of running a charity, you need to make sure you hit the legal requirements. These requirements are in place to ensure you aren’t scamming people to put money into your own pocket. Most nonprofits have a 501 tax exemption status, meaning they don’t need to pay federal taxes. However, they still need to file their nonprofit’s IRS Tax Form 990 or Form 990-N for nonprofit organizations, checking out the 990 filing requirements beforehand. Find out if there are any other legalities you need to hit in order to be a legitimate charity.
Note: This content is for informational purposes only and should not be interpreted as legal, financial, or tax advice. Please consult a qualified professional for advice on your specific situation.
Have a strategic plan in place to run it as a business
While your core goal is to raise money for the charitable cause, you also need to think about how you’re going to get the word out about your charity. You might not make a personal profit, but it still runs like a business. You might need people to work for you, run your website, and help market you to an audience. Without things such as this, you won’t necessarily raise any money and it isn’t going to work as a business model.