Difference between revisions of "How to Start an NGO"
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| − | Starting an [[Overview of NGOs|NGO]] can be a very time-consuming process. It requires a strong vision and dedication from an individual or group that share a common concern about a community. If initiated correctly in an organized and | + | Starting an [[Overview of NGOs|NGO]] can be a very time-consuming process. It requires a strong vision and dedication from an individual or group that share a common concern about a community. If initiated correctly in an organized and strategic way, the services implemented to benefit the community can be very helpful and resourceful.<ref>Srinivas, Hari. Starting an NGO from “The NGO Café: Kickstarting an NGO.” Retrieved on June 24, 2008 from the Global Development Research Center <http://www.gdrc.org/ngo/start-ngo/index.html></ref> |
The following presents ten steps, in general chronological order, that are useful in the formation of an NGO. This paper acts as a broad “how to” guideline and these issues may vary depending on each NGO. It is important to realize that these situations also vary from country to country, as each one has its own specific requirements and recommendations. <membersonly> | The following presents ten steps, in general chronological order, that are useful in the formation of an NGO. This paper acts as a broad “how to” guideline and these issues may vary depending on each NGO. It is important to realize that these situations also vary from country to country, as each one has its own specific requirements and recommendations. <membersonly> | ||
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==1. Establish Purpose/Vision/Goals== | ==1. Establish Purpose/Vision/Goals== | ||
| − | The first essential step in starting an NGO is to determine the purpose of the organization. Do so with a clear and concise written statement that describes the charitable mission of the organization. The statement must be broad enough to reflect the values of the NGO and why it exists. It is important to remember who the target community of the organization is and why it is important to reach out to this community.<ref>BoardSource: Building Effective Nonprofit Boards. (2008). Starting a Nonprofit. Retrieved June 24, 2008 from <http://www.boardsource.org></ref> | + | The first essential step in starting an NGO is to determine the purpose of the organization. Do so with a clear and concise written statement that describes the charitable [[Mission Statement|mission]] of the organization. The statement must be broad enough to reflect the values of the NGO and why it exists. It is important to remember who the target community of the organization is and why it is important to reach out to this community.<ref>BoardSource: Building Effective Nonprofit Boards. (2008). Starting a Nonprofit. Retrieved June 24, 2008 from <http://www.boardsource.org></ref> |
| − | It is also necessary to envision what the organization will become and what the long term goals and objectives are. This should be done through short-term planning (an annual plan) as well as long-term planning (a strategic plan).<ref>Hummel, Joan M. (1996). Starting and Running a Nonprofit Organization. Minneapolis: University of Minnesota Press. </ref> | + | It is also necessary to envision what the organization will become and what the long term goals and objectives are. This should be done through short-term planning (an annual plan) as well as long-term planning (a [[NGO Strategic Planning|strategic plan]]).<ref>Hummel, Joan M. (1996). Starting and Running a Nonprofit Organization. Minneapolis: University of Minnesota Press. </ref> |
==2. Establish an Initial Board of Directors== | ==2. Establish an Initial Board of Directors== | ||
| − | When setting up an NGO, the founder(s) must recruit the initial board of directors. It is helpful to start with a small group of committed individuals because the first board is the foundation of the NGO. The members must have strong legal, financial, and technological skills and should know that they are expected to serve on the basis of the public’s best interest.<ref>Wolf, Thomas. (1999). Managing a Nonprofit Organization in the Twenty-First Century. New York: Simon & Schuster Inc.</ref> | + | When setting up an NGO, the founder(s) must recruit the initial [[Board Members|board]] of [[The Primary Responsibilities of an NGO Executive Director|directors]]. It is helpful to start with a small group of committed individuals because the first board is the foundation of the NGO. The members must have strong legal, financial, and technological skills and should know that they are expected to serve on the basis of the public’s best interest.<ref>Wolf, Thomas. (1999). Managing a Nonprofit Organization in the Twenty-First Century. New York: Simon & Schuster Inc.</ref> |
People who clearly understand the mission and goals of the organization and who have new and progressive ideas to contribute are essential. Most importantly, the initial board should be able to work as a team in order to help the organization get started and gain acceptance from the community.<ref>BoardSource: Building Effective Nonprofit Boards. (2008). </ref> The size and structure of the board, as well as the people who make it up, may change based on the size and needs of the organization once the NGO becomes officially established.<ref>Hummel, Joan M. (1996). </ref> | People who clearly understand the mission and goals of the organization and who have new and progressive ideas to contribute are essential. Most importantly, the initial board should be able to work as a team in order to help the organization get started and gain acceptance from the community.<ref>BoardSource: Building Effective Nonprofit Boards. (2008). </ref> The size and structure of the board, as well as the people who make it up, may change based on the size and needs of the organization once the NGO becomes officially established.<ref>Hummel, Joan M. (1996). </ref> | ||
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*Filing articles of incorporation<ref>Fritz, Joanne. (2008). How to Incorporate as a Nonprofit: A Check List from “About.com: Nonprofit Charitable Orgs.” Retrieved June 24, 2008 from <http://nonprofit.about.com/od/nonprofitbasics/ht/startingsteps.htm?nl=1></ref> | *Filing articles of incorporation<ref>Fritz, Joanne. (2008). How to Incorporate as a Nonprofit: A Check List from “About.com: Nonprofit Charitable Orgs.” Retrieved June 24, 2008 from <http://nonprofit.about.com/od/nonprofitbasics/ht/startingsteps.htm?nl=1></ref> | ||
*Filing reports | *Filing reports | ||
| − | *Tax issues | + | *[[How to obtain tax-exempt status|Tax issues]] |
*Securing licenses. | *Securing licenses. | ||
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*A statement declaring the NGO is nonprofit | *A statement declaring the NGO is nonprofit | ||
*Location of the NGO | *Location of the NGO | ||
| − | *Number and names of the board members | + | *[[Numbers of NGOs|Number]] and names of the board members |
*Extent of personal liability | *Extent of personal liability | ||
*Whether or not the NGO has capital stock (usually it will not) | *Whether or not the NGO has capital stock (usually it will not) | ||
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== 6. Draft Bylaws == | == 6. Draft Bylaws == | ||
| − | While the articles of incorporation prove the accountability of the organization to the external world, the bylaws represent the responsibilities of the NGO to itself.<ref>Olenick, Arnold J. & Philip R. Olenick. (1991). A Nonprofit Organization Operating Manual: Planning for Survival and Growth. New York: The Foundation Center.</ref> The bylaws of an NGO specify how it will run. They act as a rule book determining structure, power, and organization. The bylaws are self-imposed by the NGO and therefore, should conform to the needs of the specific organization. | + | While the articles of incorporation prove the [[Methods of Enhancing Accountability|accountability]] of the organization to the external world, the bylaws represent the responsibilities of the NGO to itself.<ref>Olenick, Arnold J. & Philip R. Olenick. (1991). A Nonprofit Organization Operating Manual: Planning for Survival and Growth. New York: The Foundation Center.</ref> The bylaws of an NGO specify how it will run. They act as a rule book determining structure, power, and organization. The bylaws are self-imposed by the NGO and therefore, should conform to the needs of the specific organization. |
The bylaws help to resolve and minimize disputes and should be available to all members of an NGO for reference.<ref>Olenick, Arnold J. & Philip R. Olenick. (1991</ref> Though it varies depending on the individual needs of an NGO, some general information included in the bylaws may be: | The bylaws help to resolve and minimize disputes and should be available to all members of an NGO for reference.<ref>Olenick, Arnold J. & Philip R. Olenick. (1991</ref> Though it varies depending on the individual needs of an NGO, some general information included in the bylaws may be: | ||
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== 10. Come Up With a Fundraising Plan == | == 10. Come Up With a Fundraising Plan == | ||
| − | Money required for an NGO to operate primarily goes into their educational and social programs, the overall operation of the NGO (administration, utilities), and projects (surveys, giving programs). Both the board of directors and the executive director should be active participants in fundraising and it is important that writing grants, seeking contributions, and other fundraising skills are acquired skills early in the NGOs development.<ref>Hummel, Joan. (1996). </ref> | + | Money required for an NGO to operate primarily goes into their [[Educational NGOs|educational]] and social programs, the overall operation of the NGO (administration, utilities), and projects (surveys, giving programs). Both the board of directors and the executive director should be active participants in fundraising and it is important that writing grants, seeking contributions, and other fundraising skills are acquired skills early in the NGOs development.<ref>Hummel, Joan. (1996). </ref> |
In order to come up with the best fundraising strategy, it is important to identify what the needs are of the NGO and what sources can best fulfill these needs. Professionalism, communication, and accountability are crucial for building trust with a potential donor. Also, understanding why a person or group is supporting a program, activity, or the NGO as whole is useful in soliciting them to contribute for a second time or even continuously.<ref>Srinivas, Hari. Starting an NGO.</ref> The following presents some examples of ways in which an NGO may choose to pursue funding: | In order to come up with the best fundraising strategy, it is important to identify what the needs are of the NGO and what sources can best fulfill these needs. Professionalism, communication, and accountability are crucial for building trust with a potential donor. Also, understanding why a person or group is supporting a program, activity, or the NGO as whole is useful in soliciting them to contribute for a second time or even continuously.<ref>Srinivas, Hari. Starting an NGO.</ref> The following presents some examples of ways in which an NGO may choose to pursue funding: | ||
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**Most foundations fall under the category of ''independent foundations'' where most of the funding comes from individual, family, or group endowments. | **Most foundations fall under the category of ''independent foundations'' where most of the funding comes from individual, family, or group endowments. | ||
**''Community Foundations'' receive money from local sources and distribute it to local NGOs. | **''Community Foundations'' receive money from local sources and distribute it to local NGOs. | ||
| − | **''Corporate Foundations'' are set up legally through business corporations and | + | **''Corporate Foundations'' are set up legally through business corporations and are governed by trustees. They tend to support communities in which the corporation operates.<ref>Hummel, Joan. (1996). </ref> |
*''Corporations and businesses'' that have staff working in community relations or public relations departments. These departments fund many charities in communities where the company operates and usually provides grants to NGOs regardless of location. | *''Corporations and businesses'' that have staff working in community relations or public relations departments. These departments fund many charities in communities where the company operates and usually provides grants to NGOs regardless of location. | ||
*''Religious groups'' tend to fund organizations regardless of location. | *''Religious groups'' tend to fund organizations regardless of location. | ||
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*Holding orientation.<ref>Srinivas, Hari. Starting an NGO.</ref> | *Holding orientation.<ref>Srinivas, Hari. Starting an NGO.</ref> | ||
| − | After this point program activities can be discussed and implemented. It may take about a year before these prove to be successful. Finally, at the end of the first year, it is important to review the mission, goals, and vision to make sure the NGO has stayed on track. Critiquing programs and activities to see what can stay or be changed is also beneficial.<ref>Hummel, Joan. (1996). </ref> | + | After this point program activities can be discussed and implemented. It may take about a year before these prove to be successful. Finally, at the end of the first year, it is important to review the mission, goals, and vision to make sure the NGO has stayed on track. Critiquing [[Project and Program Evaluation|programs]] and activities to see what can stay or be changed is also beneficial.<ref>Hummel, Joan. (1996). </ref> |
== Footnotes == | == Footnotes == | ||
| + | The original version of this article was developed by Joanna Moshman. | ||
<references/> | <references/> | ||
Latest revision as of 13:38, 11 February 2009
Starting an NGO can be a very time-consuming process. It requires a strong vision and dedication from an individual or group that share a common concern about a community. If initiated correctly in an organized and strategic way, the services implemented to benefit the community can be very helpful and resourceful.[1]
The following presents ten steps, in general chronological order, that are useful in the formation of an NGO. This paper acts as a broad “how to” guideline and these issues may vary depending on each NGO. It is important to realize that these situations also vary from country to country, as each one has its own specific requirements and recommendations.
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