Before You Seek A Grant
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Transcript of Before You Seek A Grant
Before You Seek A grant
Andrea Snyder(410)396-5320
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
[email protected](410)396-5320