Lecture on Starting a Non-Profit

Introduction

• Speaker: Greg McRae, Founder and CEO of Foundation Group
• Focus: 11 must-do's for starting a non-profit

Key Points

1. Define Your Purpose

• Address the basic questions:
  • Why am I starting this non-profit?
  • What is the mission?
  • Who is the target beneficiary?
  • Who are the board members and staff?
  • How will the mission be accomplished?
  • How will it be funded?
• Develop a three-year action plan with activity milestones, impact goals, and budget figures.

2. Define Your Programs

• Disclose your plans in the IRS 501c3 application.
• Consider feasibility, IRS compliance, and sustainability.
  • Is the plan realistic?
  • Can you generate long-term support?

3. Understand Ownership

• Non-profits do not have ownership like for-profit companies.
• You are legally a steward, not an owner.

4. Choose Your Non-Profit Structure

• Decide between public charity, private foundation, or private operating foundation.

5. Establish Your Board of Directors

• Board members should have a passion for the mission.
• Look for strategic thinkers who can invest time and effort.

6. Understand Conflict of Interest

• Avoid conflicts that unfairly benefit insiders.
• Important to establish rules to prevent private benefits.

7. Fundraising

• Build sustainable mechanisms through donations, grants, or program revenue.
• Diversify funding sources.

8. Employee Compensation

• Follow employment laws and taxes applicable to businesses.
• Adhere to the IRS's reasonableness standard for compensation.

9. Record Keeping

• Document contributions, corporate records, activity records, and accounting records.
• Critical for IRS reporting.

10. Compliance Filings

• Important filings: IRS Form 990, corporate reports, state registry operations.
• Keep up with necessary compliance to avoid issues.

11. Seek Professional Help

• Starting and operating a non-profit is complex.
• Professional assistance can be invaluable.

Conclusion

• Importance of understanding each aspect when starting a non-profit.
• Encouragement to serve the community effectively.
• Reminder to like, subscribe, and visit the website for more resources.