Starting a nonprofit organization is a commendable move. However, there are quite a few considerations you have to make in order to ensure you are getting started off on the right foot and that you have everything you need for a solid organization. Here are four major things you have to get in order before your business officially starts business.


It’s essential for a nonprofit to have a clear mission or goal as explained by USC Online. This needs to be stated clearly and should form the basis of everything else you do in your organization. Your goal is the whole reason why you created the organization. It is what you want to accomplish or the cause you are working for. Having a specific, detailed mission can help you to better gain support, entice people to donate and encourage volunteers to get on board. Make sure that you spend some time creating it so it is polished and ready before you go.


Choosing the leaders in your organization is another important decision that needs to be made early. The leaders will shape the organization and, hopefully, lend it some creditability. It is essential to choose people who are trustworthy, knowledgeable and capable of running a nonprofit. You have to always be aware of the possibilities that something could go wrong with your leadership that could bring down the whole organization. White collar crime, like that in this infographic from USC Online, can ruin a nonprofit’s reputation and is usually something that originates with a leader in an organization.

Economic Concerns

Nonprofits exist due to the kindness and dedication of its donors. When the economy isn’t doing well, it can be difficult to move people enough to get them to donate. You have to have backup plans for when times get tough. This can include alternative funding or marketing campaigns that get people to donate despite financial hardships. Money is like the blood of a business, without it, you run dry and can’t continue. Even when times get tough, you have to find a way to keep your organization floating, and having solid plans ahead of time is the best way to protect it.

Legal Requirements

While you may be working hard at shaping your organization and getting your ideas in order, you simply cannot forget about the legal requirements. This includes all the paperwork that has to be filed. You have to file standard documents, like claiming your business name. In addition, you need to make sure to get in the properly filled out documentation to claim your tax exempt and nonprofit statuses. You also need to draft your bylaws and articles of incorporation. It is essential to make sure you get all your paperwork filed before you begin business to avoid legal complications.

Making these four considerations early on in the creation of your nonprofit organization is important. These things will help shape your organization and set it up for a bright future. Giving your organization a solid foundation from which to start will get it on the right path towards accomplishing what you set out to do for your chosen cause.

By Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IIT Mumbai, IIT Chennai and IISc Bangalore. She holds 2 patents and over 20 research publications in her name which are highly cited. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.