For people who are passionate about changing the world, one of the biggest ways to contribute is working with charitable organizations. These groups, from the smallest community foundation to international relief efforts, are vital to helping under-served and marginalized people in our backyards and abroad. Donating your time, money, and attention to a charity can be an enriching experience, but what if you want to start a charitable organization in your own community? How do you know what to do first to make sure it thrives in the future?
At StorageMart, we share that passion for community engagement. It’s part of our founding principles. That’s why we donate space, time, and funding to local, national, and international charity organizations. Because we’ve worked with so many charities throughout the years, we’ve gained some insights into the process of starting your own charitable organization.
The Importance of Research
One of the first steps to starting your own successful charity is to sit down and immerse yourself in research. In addition to thinking about the logistics of running a charity (which we’ll cover in a bit), think about your cause. Ask yourself some of the following questions:
- What kind of charity do I want to start?
- Is this a cause others will care about?
- What statistics can I find about the subject of my charity?
- Do other charities already exist to help serve this need?
- How much time can I commit to running the organization?
Why is it important to ask these questions? Simply put, starting a charity requires a lot of legwork. In many cases, there’ll also be a financial commitment. Think about what organizations already serve the community or cause you want to help. Global organizations may have local chapters that may already fulfill your charity’s intended need. Charitable organizations don’t intend to compete with one another, but it may be hard to get your message out there if an established organization with your focus already exists.
If you find that your schedule and budget work with your charitable goals, the next step is to gather as much information about your cause as possible. Look up statistics and research topics both directly related and adjacent to your charity’s intended subject. That information will be helpful as you seek partners for marketing and funding.
Develop a Vision, a Mission, and a Plan
Once you’ve answered all the above questions about your charity, it’s time to build your vision and mission. Note that they are not synonymous with one another. The vision should be your “why.” It’s the inspiration. The mission, meanwhile, is your charity’s purpose: what you do, for whom you do it, and the service you offer. Support your mission with specific and achievable goals. Around the same time, consider the values of your organization, as these will help influence your future decisions.
At the same time, begin writing your five-year plan. This document will help you strategize your fundraising, organization, budgeting, and other efforts. Not sure where to start when it comes to planning? The next tip can help.
Finally, think about your vision, mission, and plan, and use them to come up with a name for your charity. One major tip? Consider using a person’s name. While names can describe your charity’s function, people like to donate to other people. By naming your organization in someone’s honor or memory, you may help encourage donations from others. In addition, your name can help differentiate your charity from others—which is important, given that there are more than 1.5 million nonprofit organizations in the United States alone.
Seek Guidance from Experienced Mentors
Successful charities often use an advisory board. You’ll want one, too, especially as you work to get your charity off the ground. Reach out to a handful of people with significant nonprofit experience, especially those with experience in finances and fundraising. Your advisory board should have formal meetings on a weekly or monthly basis, but they also need to be available to answer your questions in real time. Once your charity is up and running, you may want to expand the board’s size to include significant donors and others with fundraising contacts. Even as people join, remember to keep the advisory board manageable; a good rule of thumb is that healthy charities typically include 20 people as advisors. With the exception of your attorney and accountant, advisory board positions should be unpaid.
In addition to helping you raise funds, a good advisor will help you navigate the process of registering as a 501(c)(3) organization. This will allow you to operate as a nonprofit, tax-exempt organization, which is important as you begin raising funds. Consider hiring a lawyer and accountant with nonprofit experience. Even though a lot of information can be found online, working with professionals can assist you with the proper steps and keep you from breaking government rules.
Building Your Charitable Organization
With your advisory board and plans in place, it’s time to start the actual day-to-day work of building your organization. In today’s world, it’s essential to set up a reliable infrastructure to handle items such as information on your organization, fundraising, and marketing and promotions.
Build Your Website and Social Media Profiles
Build a website to announce your organization’s purpose and intentions, provide vital details like contact and fundraising info, and solicit support from the community. In many cases, your website will be the focal point where most of this information will be shared. Avoid sharing business plans or financial data. If potential backers or partners are interested, they can contact you to obtain it.
When you build your website, go ahead and register social media profiles on major networks for your charity. This can help share your goals, process, and accomplishments with others. In many cases, having a robust social media presence and a lot of community engagement can make fundraising more enjoyable.
Raise Money for Your Cause
This is one of the hardest parts of running a successful charity. You can use your own funds to run the charity, but you’ll probably need help from others. Start by asking your friends or relatives, but also consider reaching out to grassroots groups, individuals, and other foundations and investors. Plan to write stacks of letters and make plenty of phone calls. You’ll need to prepare presentations, call for meetings, and put feet to pavement to make it work. Always remember to be professional and disciplined.
Above all, don’t get discouraged! Raising funds for a nonprofit is not an easy task and takes time and energy.
Begin Operations
Once you’ve raised enough money to fund initial capital requirements (read: startup costs) and can account for at least one year of operating expenses, it’s time to start working to further your plan. Try not to use debt to fund your operations. Treat every dollar you spend as if it’s the last dollar, and try to be as frugal as possible.
Always remember: Spending is first and foremost supposed to support the mission of the organization, not necessarily the people who work there.
Growing for Success
Eventually, there may come a day when you need to hire external help to keep your charity moving forward. This is great! Just remember to be cautious about spending. A good rule is that nonprofits should spend 80 percent or more of their money on program expenditures and 20 percent or less on administration and fundraising. Efficient use of your funds is actually a great way to encourage fundraising because donors appreciate knowing their money is used wisely.
Above all, the biggest tip to keep in mind is patience. Build your organization to last with thoughtful planning, slow expansion (supported by efficient fundraising), and passion. Starting any endeavor is a lot of work. It requires grit, persistence, and the wisdom that you are doing good work worth doing.
Of course, the best way to continue that work is to find enthusiastic partners, donors, and employees who can help make your vision a reality. Reach out to others both in and outside your community and share your passion with them. Tell your story and the story of the people you are trying to help. Remember, the best time to start creating a better world isn’t tomorrow—it’s today.