The 5 Tragic Mistakes When Starting A Nonprofit

Starting a nonprofit can be the greatest challenges a person can make, but just as rewarding. You can not only help those who need it in your own community, but also in other communities. Whether it’s helping people, animals, or something else, it can be a wonderful, lifetime experience.

With this in mind, if you want to have an organization that is going to last a while, then there are mistakes that many nonprofits make that you want to avoid. Be sure to know these top mistakes people make when starting a nonprofit:

1. Top of the list really is knowing what you’re getting into. While you may have a love of animals, or volunteer in your local community for other charities, starting your own is going to take most of your effort and a lot of knowledge of what your organization is going to be about. You need to know what you’re doing.

2. The next tragic mistake that people make when it comes to starting a non profit organization is fundraising. It costs a lot to keep an organization going, and if you think you can do it on your own, you will end up broke, taking out loans that will be hard to repay, and putting yourself in a hole trying to help others. One of the things that people don’t do is fund raising as often as possible, and in places where there is going to be a lot of people. One thought, try setting up at fairs, craft shows and concerts. A lot of times, if you tell the organizers that you are a non profit group seeking fund raising, they will often let you set up a booth for free.

3. In addition to the lack of fund raising, many people don’t utilize all of their resources, or even know about them when it comes to getting money to run you group. There are an abundance of grants, and programs available from the government, on both the state and federal levels. It is important that you send in as many applications as possible, to get the funds you need.

4. Another big mistake that people make is hiring the wrong people. Sure you want to get your friends and family involved with your nonprofit, but there are times when conflicts may arise, and this can cause a bitter taste in your mouth. Hiring people you don’t know needs to be done delicately as well, because there are some unscrupulous people out there that are bent on taking your organization’s money. You need to investigate and make sure these people have your best intentions in mind.

5. When you are starting a nonprofit, one of the most important things that many people don’t think about is tax exempt status. It is important that you go down to your local tax office and get a tax exempt identification number immediately. What this does is allows you to make purchases, big or small, without paying sales tax. This is important, especially if you are making large purchases like computers software, and even vehicles.

Now this isn’t designed to deter you from starting a nonprofit organization, honestly. However, in order to succeed, you should avoid making mistakes, and these just some of the things you should be aware of.


Joe Adams is an expert in the area of nonprofit organizations. Read more about starting a nonprofit at his website

When you’re Uk marriage visa starting a nonprofit, make sure to get everything in order before you start. Many people Uk marriage visa starting a nonprofit have greatly benefited with a little more research.

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