How to Start a non Profit Business

Starting a non profit organization needs a reason/purpose, if you know your motive to start a profit less company then this article can help you setting your first step towards the goal.

There are several reasons why people start non profit businesses. Social entrepreneurs, for example, find it a rewarding experience managing nonprofit corporations that help and make valuable difference in the society.

The best thing about starting a non profit business is the opportunity to promote awareness, raise funds for a chosen purpose and operate an organization that employs people. If you consider founding a non profit business, however, you will realize that starting a non profit venture is no easier than starting a business for profit. There are a number of requirements that you have to comply with and you operate non profit businesses in almost the same way that you operate and manage ordinary business organizations. Here are some of things that you have to prepare for when starting a nonprofit corporation:


May it be to raise awareness on global warming or to protect the endangered species from extinction, it is important that you have a specific charitable purpose for your non profit organization and an accompanying program for its implementation. You will be advised to identify your non profit organization’s charitable purpose prior to being approved as a non profit and charitable business. You will also need to comply with legal requirements for your non profit business which requires that you check out with your state business office for a list of documents that you need to submit and forms that you need to file. This includes the 501(c)3 form for tax exemption application. Remember though that not all financial nonprofit organization will be exempted from paying taxes because the tax exempt status depends on your non profit organization’s entity classification.

Raising funds for your non profit business

Regardless that your organization is non profit and is established for charitable purpose, it is a requirement that you have funds to sustain the operation of your business. It is therefore necessary that your nonprofit company has the necessary funds. It will be helpful if you can make a list of possible donors for your nonprofit company. Business companies and individuals that support your cause are among the best prospects. Approaching a company that is known to support anti global warming campaigns, for example, is a good idea if you are raising funds to support a program on protecting the environment. Creating awareness is also helpful to encourage individuals to support your cause. Your non profit organization can also get grants from foundations and by checking out available government grants.


  • Landis said on October 15, 2009
    My wife and I have put together a group of people who order organic and green products through us. Due to shipping it takes a minimum weight of 400lbs to ship. Then I have to drive a hundred miles to pick up the freight and bring it home. Then all the people come pick up their goods. The only thing we save on all our efforts is free shipping which only amounts to around $20.00 and that doesn't even cover the fuel to pick the freight up. The typical shipping weight is usually around a ton. The group had grown to be to large at one time and we had to split it up and start another branch. The whole reason why we started this was so that we could feed our family healthy foods and support organic business which in turn helps the world. We also support local organic agriculture by buying our produce from them. Is there a way to turn this into a non-profit of some sort to compensate our efforts and help pay for the additional costs we accumulate to benifit our group?
  • sydia limehouse said on October 24, 2009
    please give me some pointers i really need some advice
  • Colleen said on December 16, 2009
    I want to start a rescue for pekingese dogs and and a rescue to help disabled people with vet bills so they can keep their pets healthy. I am just not sure to even how to begin this.
  • Jenny said on January 23, 2012
    I live in Oceanside, CA. My daughters and I have started making soy candles, and want to sell them as a small home-made business in order to raise money for various charities and missions. Honestly, we just want to recover the cost of making the candles, and use all profits to pay for their own mission trips or to support related charities of our choosing. Is it worth it to even designate it as an actual 'business', so we can give customers a tax i.d. # for tax benefits? On the other hand, is it better to sell them privately to church members, family, etc. without the official 'business' status? I can't imagine we would even make more than a couple thousand a year. It is a small venture, intended to raise funds for these causes only...thanks for the advice.


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