In a society where most people are driven by money and financial gains, it is very common to find that most people are oblivious to the rewards that come from establishing nonprofit organizations. While you will not generate income from a nonprofit organization, you can be sure that this venture offers much more rewards and gratification than money can buy. Establishing a nonprofits organization will re position you to become a humanitarian while giving you an incomparable feeling of satisfaction and a strong sense of accomplishment. In this article, we will explore the requirements for establishing a nonprofit while touching on the reward that comes with the terrain. 
 
Assisting people: At the heart of a nonprofit organization is the desire and will to assist people. The number one objective of a nonprofit organization is to help people in need. While this might seem like a trivial affair, it should be pointed out that nonprofit organization takes this very seriously. It should be noted that a nonprofit usually has a specific area that it focuses on.  It could be focused on homeless children, destitute, mentally ill, refugees and many more. Ultimately, the objective is to improve the lives of humans. For anyone looking to establish a nonprofit, they must be accomplished in their chosen field. It is often expected that they are wealthy and contented. Most importantly a deep sense of compassion for humans is needed.  They must be determined and motivated by a unique ability to lead and organize others.

Unless you have a Buy-Sell Agreement (BSA) among the company partners, then there is nothing you have in a company. It’s assumed that if you don’t have a BSA set up and any of the following happen then it can thoroughly disturb your business along with your own life:
·         The demise of your business partner will make his wife or adult child the co-owner of the company.
·         In case of the divorce of your partner, the business’s fund may have to be shared with his/her ex-spouse by the court orders.
·         If you want to retire or desire to sell your share, then your company or your partner may stop you.
·         The co-owner sells his/her share to any other without letting you know even.  
That can be a ruin to your company if you don't ensure yourself with a BSA. No assurance, no possession!
Contact us today to hire our team online for just $1000.00!
   -   Yoel Molina,esq

Build Solid Foundation
 

• Write a Business Plan

As with a for-profit business, a business plan can help a nonprofit to describe how it wants to fulfill its mission in more detail. It can also be used to demarcate a new project or business.

• Make Your Mission Statement

The development of your mission statement is a decisive first step. Communicate the purpose of your nonprofit, which groups it serves and how it serves them. Every decision and action in your organization should support and encourage your mission.

• Develop Your Board

As the governing body of your nonprofit, your board of directors performs a variety of legal functions and responsibilities. To effectively fulfill these functions, the board will change as your organization grows and matures. Although hiring is an important step in this process, a systematic approach to board development, including:

• The orientation
• Training
• Evaluation
• Training of potential board members
  
  

All these are critical to ensuring that long-term success.

Incorporate Your Nonprofit

• The IRS requires the documents of organization and government policies and procedures that are typically associated with businesses.
• A formal structure gives credibility to your programs and services.
  
• The corporate structure restricts the liability of directors and officers of the organization.
  
  

File For 501(C)(3) Tax-Exempt Status
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Apply for exemption status with the Internal Revenue Service (IRS). Note that the fee is $400 or $850, depending on whether you expect the average gross annual income to exceed $10,000 per year over a four-year period. It can also take 3 to 12 months for the IRS to return its decision, depending on the number of questions the IRS has on your request.

Ongoing Compliance
Register with your state agency, which handles charities and charity applications (usually the Attorney General). If you want to request contributions from other states, you also need to register. Again, the registration requirements vary with each state.

Prepare For Annual Reporting
All exempt organizations must submit a version of Form 990 to the IRS. Form 990 represents your finances, activities, governance processes, directors, and key people who are open to public inspection. The version you submit depends on your total gross income for the year. States also have their own reporting and renewal requirements that can vary from state to state. Therefore, consider tracking the finances and activities of your organization to facilitate the development of these annual reporting requirements.

Do Your Homework

• Is Non-Profit Suits You?

Public charities must be organized and operated solely for tax-exempt purposes under Section 501 (c) (3) of the Internal Revenue Code. If you want to set up a nonprofit to receive a wage subsidy, stop now and look for another option. In fact, many new nonprofit are not even ready or eligible to receive grants.

• Learning About Alternatives

Starting a new nonprofit could be the most complicated way to live up to your passion for the community. The biggest challenge facing most new nonprofit is finding and maintaining reliable revenue streams.
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• Carry Out Analysis

Find out if (government, nonprofit, or profit) organizations are already doing exactly the same work in your community. It will be more difficult to get help if you simply duplicate existing services instead of improving or adding them.

you have a buy-sell agreement (BSA) among the owners and the company.  Nothing is owned in the sense that unless you have a BSA in place any of the following can occur at any time and totally disrupt your business and your personal life:

• If a business partner dies you are now partners with his or her spouse or adult hiers.
• If a business partner divorces the court could give his or her share of the business to the ex-spouse. 
• The company and your co-owners can refuse to buy you out when you need to retire or need to sell your share of the business.
• A co-owner can sell his or her interests to whomever he or she wants without notice to the other owners.
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There are many other scenarios that can ruin your business if you do not protect yourself with a BSA. No protection, no ownership!

Click here now to hire us online for ONLY  $1000.00 


  - Yoel Molina,esq.
‘Our only goal is your success’

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Are you thinking about setting up a business that includes your desire to give back to your community? A nonprofit might be an ideal business structure for you. Nonprofits vary in size and focus, such as Make-A-Wish Foundation, which grants wishes to sick children; ASPCA focuses on animal welfare or The Fender Music Foundation focuses on music education. If you have a passion, you can build a nonprofit around that passion to produce a potential long-term legacy.

Before Starting a Nonprofit Ask These Important Questions
Do you have a cause you are passionate about and are thinking about setting up your own nonprofit organization? To make a successful launch, ask yourself the following important questions.

1. Why – Why start a nonprofit?
Why start a nonprofit in the first place? What's motivating you? The National Council of Nonprofits considers your motivations about starting a nonprofit and asks yourself who is going to be involved and how will your organization be different? Is there a similar organization already in your area? Exactly how and why is your nonprofit going to benefit the community? Be sure you understand the needs of the community and networking with local nonprofit leaders is also important.
 
2. Who – Who will be the beneficiary of your nonprofit?
When you thoroughly investigate setting up a nonprofit, its purpose has to be solidified. Who or what community group will be the beneficiary of your nonprofit? What kind of business will you run to benefit the community? What is the location of your nonprofit and who will be the board members? An in-depth business plan will answer these questions and will crystalize your nonprofit's mission statement, bylaws and rules.
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3. How – How will the nonprofit be funded?
Funding is the most important part of the business plan and has to be addressed first. What are your revenue sources? Are they stable? Do you have donors? How will you solicit funds from them? Good planning for funding and the challenges will save lots of time in the future. The Society of Nonprofit Organizations and The National Council of Nonprofits are excellent resources for solicitations and funding.
 
Are You Committed?
Serving the community is one of the most admirable missions. However, you should know there will be challenges running a nonprofit similar to a business. The Red Cross and UNICEF had humble beginnings, but became global nonprofits and they faced challenges as they grew. But with passion and commitment, you can bring your nonprofit dream to life and the emotional rewards will be worth the work.