Five Steps to Taken When Starting a Charity

Putting together a charity is almost like setting up a business. There is a lot of paperwork you have to sift through, legal stuff you have to take into consideration and other important factors. Therefore, unless you are ready to take on such responsibility, do not venture into setting up a charity. Ensure that you look into all aspects first, and carefully plan everything out before you start. Here are five essential steps you should take into consideration:

Step 1: Decide on what kind of charity you want to set up. If there is a certain cause you have in mind, then, move onto step 2. If not, consider your interests and the available resources that will help you to meet your goals. Look at your community to find what is missing and what is needed. This should give you enough insight in making an informed decision. It is unnecessary to set up a charity that is similar to one being run in the same area. Analyzing the competition is of absolute importance – especially when drawing up a good business plan.

Step 2: Filing requirements. Check with the local authorities regarding relevant registrations and licenses you might need to get when setting up your charity. You might also need to obtain special insurance for the charity, which is over and beyond the usual insurance policy needed for a business. If you are employing people, then that paperwork also must be dealt with. Ensure that all IRS requirements are met.

Step 3: Board members. Find people who you know and can trust, who are experienced, educated and most importantly interested in the mission and goals your charity will set out to achieve.

Step 4: Business plan and budget. While a charity is not a business, setting one up requires careful planning – hence a business plan is needed. The more solid your business plan – the more successful your charity will be. Include your budget as well, ensuring that all costs are taken into consideration, no matter how minute.

Step 5: Patience. Setting up your charity will be no easy task and sometimes could pan out after a long time. Hang in there and set yourself to the task. On average, setting up a charity could take at least a year.