Books and Articles by 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.

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.

Generally, a grant writer develops a proposal by talking with staff members, volunteers, or the board about a project idea. Before setting fingers to keyboard, the writer should investigate the following: What is the demonstrated need in the community for the work you intend to do? Who are the constituents who will benefit from your efforts?

What if no existing building suits your nonprofit organization’s needs? You may be in for a major effort to substantially renovate a space or construct a new building. If you’re one of these brave and hardy types, here is some information you might need before you jump into the project.Even a small organization with the right board and campaign leadership can manage a successful capital campaign if its expectations are reasonable.