Despite the tough economic times and hearing rhetoric about the need for “doing less with less," looking at partnerships and collaborations and/or possible mergers and consolidations, I have received nearly a half dozen requests during the past week for individuals wanting to start-up new nonprofits. Many of these ideas are innovative and intend to fill a need that is unique.
In working with these groups, common questions include: What is the next step? How do I get started? Should I form a nonprofit or for-profit entity? The answers to these questions are fairly simple and there are a variety of resources available. The bigger question and probably the biggest barrier is “where do I obtain the funds to apply for nonprofit status?” In Minnesota, there is a fee to register the name from the Secretary of State office; a fee to file the articles of incorporation with the Secretary of State; a fee for the charitable registration from the Attorney General’s office; and a fee to the IRS to file for federal tax exemption.
Some ideas to respond to this barrier could be mobilizing community leaders and concerned citizens through community meetings and gatherings, donations from individuals and businesses, or a small event. Of course, there are some rules that regulate the timeframe in which you have to hold these donations prior to receiving your nonprofit. What ideas or suggestions would you have for new start-up organizations? Do you have any success stories or words of caution to share?
Incidentally, some great resources for assistance in forming a nonprofit organization include the IRS web site, the Attorney General Office, Charities Division, and the Minnesota Council on Nonprofits.
Posted by Kathy Grochow, NRS, St. Cloud
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