Stan Hutton

The first thing to do for your nonprofit after you complete your incorporation is to apply to the IRS for an Employer Identification Number, or EIN. Even if you don't plan to hire employees anytime soon, you need this number for your application for tax exemption and for all your state and federal reports. The EIN will be attached to your nonprofit forever.

Although online donations still represent a modest percentage (13 percent as of 2020) of total giving to nonprofit organizations, that percentage is growing, and your nonprofit's website is an important fundraising tool.People give online because it's fast and convenient. Websites are particularly strong at reaching donors who know your organization well, trust it, and like the convenience of giving online.

Creating and running a nonprofit organization can be a gratifying and worthwhile endeavor. Success depends on developing a good idea that meets a real need, testing that idea, planning (and planning some more), and inspiring others. Though the work is demanding, it’s also deeply rewarding.How to secure nonprofit statusBefore you can begin operating as the kind of nonprofit organization that receives tax-deductible gifts from donors, you need to secure 501(c)(3) nonprofit status in the eyes of the Internal Revenue Service (IRS) and your state.

If your nonprofit organization is grappling with a move to a new (or its first) office building, you’re facing important decisions. And guess what? You need to write a plan!This effort is likely to have three phases: Planning for your needs Identifying possible locations Analyzing the feasibility of the locations you find How much space and of what kind?

Unlike for-profit businesses, nonprofits can’t evaluate their performance solely by showing a profit at the end of the year or increasing the value of their stock. Indeed, they may generate a budget surplus to invest in their future work, but that isn’t their primary purpose. Some people say that nonprofits have to achieve a “double bottom line,” one in which their finances are healthy and their activities are meeting their goals — what a friend of ours calls “an appropriate balance of mission and resources.

Most startup nonprofit organizations depend on volunteers because money to pay staff is unavailable. But lack of resources isn’t the only thing that drives a nonprofit to operate with an all-volunteer staff. Some nonprofits make a deliberate decision to operate solely with volunteers to contain their costs and to achieve results with a collective effort among people who care deeply enough to contribute their time and energy.

Just like managing your nonprofit’s paid employees, working with volunteers requires attention to management tasks. Volunteers need training and orientation as well as clear, written lists of responsibilities and expectations. Basic expectations for volunteers are easily outlined in a volunteer agreement form.

Even in a small nonprofit organization, you want to establish careful practices about how you handle money and financial documents. If you have a one-person office, creating all the following controls may be impossible, but you should try to implement as many of them as possible: Store checkbooks, savings passbooks, blank checks, financial records, and cash in a locked, secure place.