Before You Seek A grant

Andrea Snyder(410)396-5320

grc@prattlibrary.org

Twitter: grants_pratt

What You Will Learn Today

• Characteristics of successful nonprofit organizations

• Key elements of start-up and operational issues

• Available resources

Nonprofit Lifecycles

• Idea stage • Start-up stage • Growth stage • Mature stage

—Nonprofit Lifecycles: Stage-based Wisdom for Nonprofit

Capacity (2001)Stevens, Susan Kenny

Characteristics of Successful Nonprofit Organizations

http://flickr.com/photos/jeffhester/2434283985/

Key Elements of

Getting Started

http://flickr.com/photos/basegreen/205733912/

Start-up Issue: Mission

• Have a clear mission statement that includes:– Service– Purpose– Beneficiaries

Start-up Issue: Board of Directors

Key board responsibilities: • Determine mission and purpose • Select and oversee chief executive• Lead organizational planning• Ensure adequate resources• Strengthen programs or services• Maintain integrity and accountability• Assess own performance

Start-up Issue: Board Members

Finding board members:

• Enlist committed board members– Talent, Time, and Treasure

• Establish responsible board policies– Example: Conflict of Interest Policy

Start-up Issue: Staff

• Recruit competent staff

• Prepare a personnel manual

Legal Issue: Key Legal Steps

• Certificate of incorporation

• Apply to IRS for section 501(c)(3) status

–Form 1023

• Register with state where you are located

Legal Issue: By-Laws

• Explain how your organization will operate in a procedural way

• Membership or not?

Financial Issue

• Open bank account(s)

• Retain accountant or other professional with nonprofit experience

• Establish financial control procedures (e.g. check writing, review of bills, reconciliation of bank statements)

Financial Issue, continued

• Make payroll arrangements (NEVER fail to withhold or remit amounts withheld)

• Be sure to differentiate “independent contractor” from “employee”

Insurance Issue:Legal Requirements

• Workers comp.

• Unemployment insurance

• Disability

• Auto liability, if applicable

• Any other state requirements

Insurance Issue: Desirable Coverage

• Property-Casualty

• Errors and omissions

• Directors and officers liability

• Health insurance

• Retirement plan

• Vacation/holiday/leave policy

• Other: long-term disability, reimbursement policy

Insurance Issue: Employee Benefits

Facilities

• Find office space

• Negotiate lease

• Arrange for any construction

• Obtain office equipment (rent/buy)

Reporting

• To State(s) where you have an office

• To State(s) where you are incorporated (if different)

• To IRS

Financial Planning: Overall Fundraising Plan

• Governmental/public funding• Earned income

– Membership dues– Product or service fees

• Private giving– Institutional philanthropy (foundations/corporations)– Individual gifts (individual donors/bequests)

• Fundraising events

Still Want to Create a Nonprofit Organization?

Advantages

• Tax exemption

• Eligibility for public and private grants

• Individual donors can claim tax deduction

• Formal structure

• Limited liability

Disadvantages

• Cost

• Paperwork

• Shared control

• Ongoing administrative details

• Public scrutiny

Alternative Options

• Join an existing nonprofit

• Consider fiscal sponsorship

Start-up and Nonprofit Viability Checklist

Thank you for coming!

Andrea SnyderGrants Collection

Enoch Pratt Free LibraryState Library Resource Center

grc@prattlibrary.org(410)396-5320