Non profit organization can be a challenge for the entrepreneur to start and run. They have to take special care of infrastructure development for the successful running of the nonprofit organization. They have to maintain the organization development along with the aim of achieving benefits for the people. Starting a nonprofit organization is a complicated task because the entrepreneur has to take care of the organization’s sustainability as well as the serving of people at the same time. Establishment of the such organization is a step by step process. Non-profit organizations work for the welfare of the human kind. The process of starting a such organization requires the following elements.
- Clarity of vision and mission statement
To start the organization, entrepreneurs should have the clear vision of what to achieve in the future. They have to identify the mission statement of the organization so that it will be clear to the management and the workers. It also helps the volunteers to work with the organization. Mission statement is the first element for any kind of business either profitable or non-profitable. This mission statement provides the direction for the management to work.
- Selection of board of directors
Non-profit organizations have to select the board of directors who stick to achieve the organizational objective. They have to serve the organization to help the poor people in the society. They have to make the rules and regulations regarding the best serving of the people in the community. Nonprofit organizations have to select the members of board carefully because the success of the organization depends on the decisions made by the board of directors.
- Fund raising sources
After the establishment of the infrastructure, NPO have to search for the volunteers who help the organization to serve the humanity. These volunteers provide the funds to the organization through the contracts and agreements. These volunteers can be in the form of the individuals, corporations, people from home, agencies and foundation. All of these can help as they can easily donate to for the cause. There are no minimum funds limitations for the NPO to receive.
- Tax exempt application
The NPO can apply for the tax exemption under the internal revenue of the government. They do not earn for the development of the organization to maximize the shareholders wealth. They work for the humanity and the big portion of income is spent on the welfare of the humanity in the society. A small portion of income after that is spent for the fixed expenses of the organization. So, they do not possess money for the government to earn from them. This is the reason for which they can apply for the tax exemption under the internal revenue system of the government of specific country.
- Promotional events
After the establishment of the nonprofit organization, management should hold the events to help people and make them aware of the worth of human kindness. This promotion helps the non profit organization to develop and provide the assistance to poor people at best possible level.
Roger Milano is a artist and blogger currently residing Colorado Springs, CO United States.