Everything About Starting a Nonprofit Organization: A Step-by-Step Guide

Smart Movers,

Is there any social or environmental issue that bothers you? For example, climate change, Poverty, Inequality, Discrimination, Environmental degradation, and more.

Are you passionate about making a difference in the world, helping people, and solving these problems? If yes, then this video is for you.

“NGOs are the heart and soul of civil society, but it is not in some countries.

In this video, I am going to provide complete information about NGOs and Nonprofit organizations. This video might be a bit longer, but it will have everything about NGOs.

 

According to the World Bank report, there are over 10 million NGOs worldwide. However, other sources estimate over 40 million NGOs in the world.

 

There are 1.3 million charitable nonprofits in the USA and more than 12.3 million people work in these nonprofits. There are more than 64 million nonprofit board members and volunteers. The good news is that there are tens of millions of donors who support these NGOs.

To establish an NGO, you will need to:

First: Choose a cause or find a problem. What are you passionate about? What social or environmental issue do you want to address? Once you know your cause, you can start to develop a mission statement and goals for your NGO. I am going to put the mission statement sample in the description.

Second: Do your research. Learn about other NGOs working in your chosen area. What are they doing well? What could they be doing better? This information will help you to develop a unique and effective approach to your work.

Third: Create a business plan. This document will outline your NGO’s goals, strategies, and financial projections. It will also be helpful in attracting donors and partners.

Fourth: Register your NGO. You will need the following documents: The specific documents required to register an NGO will vary depending on your country and state. However, some common documents include:

    1. A completed application form. This form can usually be found on the website of the government agency responsible for NGO registration. I will insert more information and the website link in the video description.
    2. A copy of the NGO’s constitution or bylaws. This document should outline the NGO’s mission, goals, and structure.
    3. A list of the NGO’s board members and officers. This list should include the names, addresses, and contact information of each person. There must be at least three board members.
    4. Business plan. This document should outline the NGO’s goals, strategies, and financial projections. Comment on your email to send you a copy of a business plan.
    5. Proof of address. This could be a copy of a utility bill or lease agreement.
  1. Registration fees: The registration fees to start a nonprofit organization in the world are different. In the United States it is between $100 and $ 500 depending on the state. For example: California: $100, Texas: $300, Florida: $350, New York: $200, and Illinois: $150

Fifth: Raise funds. NGOs rely on a variety of funding sources, including donations, grants, and government funding. You will need to develop a fundraising strategy to attract the resources you need to operate your NGO. We will talk more about this, wait till the end.

Sixth: Start working! Once you have everything in place, you can start working to achieve your mission.

 

What are the sources of revenue for NGOs?

Nonprofits can have different sources of revenues, including:

  • First, Sales of goods and services: 49% of Nonprofits EARNED from their Private Fees for Services. Some nonprofits sell goods and services to generate revenue. For example, a nonprofit that provides job training may sell products made by its trainees. Selling goods and services can be a way for nonprofits to generate revenue while also supporting their mission.
  • Second, Government grants, 31.8% EARNED from the Government Grants/Contracts. These grants can be used to support a variety of programs and activities, and they can be a significant source of revenue for many nonprofits.
  • Third, Individual donations: 8.7% DONATED by Individual.
  • Fourth, Foundation grants: 2.9% DONATED by Foundations. Foundations are charitable organizations that provide grants to other nonprofits.
  • Fifth, Bequests: 1.5% donated by bequests. A bequest is a gift of money or property that is made in a person’s will. Bequests are often made to charities because people want to support the causes they care about even after they are gone.
  • Six: Corporate sponsorships: 0.9% donated by the corporations. Corporations often sponsor nonprofits as part of their corporate social responsibility initiatives.
  • Seven: Other donations such as Event fundraising, Membership dues, and more:

 

Flow of Funds in the USA by the government.

  1. Federal Government funds
    1. States
      1. Municipalities
      2. Community-Based Nonprofit.
    2. Municipalities
    3. Community based organizations

 

Scope of work for nonprofit organizations:

Nonprofits can work in a wide range of sectors, including:

  • Arts and culture: Nonprofits in this sector support museums, theaters, dance companies, and other arts organizations such as: The Metropolitan Museum of Art, The Lincoln Center for the Performing Arts, and the American Film Institute
  • Education: Nonprofits in this sector support schools, colleges, universities, and other educational institutions such as Harvard University, the Khan Academy, and the Sesame Workshop
  • Environment: Nonprofits in this sector work to protect the environment and promote sustainability such as: The Sierra Club, the Environmental Defense Fund, and the Natural Resources Defense Council
  • Health: Nonprofits in this sector provide healthcare services, support medical research, and advocate for public health initiatives such as: The American Cancer Society, the American Heart Association, and the March of Dimes
  • Human rights: Nonprofits in this sector work to protect and promote human rights around the world such as Amnesty International, Human Rights Watch, and the Southern Poverty Law Center
  • International development: Nonprofits in this sector work to improve the lives of people in developing countries such as Oxfam, Save the Children, and the United Nations Children’s Fund (UNICEF)
  • Social services: Nonprofits in this sector provide a wide range of social services, such as housing assistance, food assistance, and job training for example The Salvation Army, the United Way, Habitat for Humanity, Refugee One, MWRC, GEC.

 

Here are some additional tips for creating a successful NGO:

  • Be clear about your mission and goals.
  • Be realistic. Don’t try to do too much too soon. Start with a small, achievable goal and build from there.
  • Be transparent and accountable. Be open and honest with your donors and supporters about how you are using their money. Be accountable for your results and be willing to learn from your mistakes.
  • Be patient. It takes time and effort to build a successful NGO. Don’t get discouraged if you don’t see results immediately. Just keep working hard and focus on your mission.
  • Connect with the council of nonprofit organizations.

 

This video ends here, but your future starts now. Best of luck with your Nonprofit.

Thank you

Siam