Library

As many of you know, there are two roles that the Founder can take in the organization. You can either be a volunteer board member who votes to make major decisions for the organization, or a paid executive who makes the day-to-day decisions (usually referred to as executive director or CEO). Most of our Founders choose to take a role as a paid executive, in the hopes of eventually pursuing their position running the nonprofit part time or even full time. However, the concern becomes that at any point in time, board members can vote to "fire" the Founder of the organization, as seen by Kimberly Bryant , who had established 15 chapter cities in the U.S. and offered opportunities to close the gap in technology education for over 30,000 black girls, woke up to a personal email 3 days prior to Christmas informing her that she had been suspended from her role indefinitely. With these fears in stow, it's no wonder that Founders are hesitant to invest their time and energy into their organizations. What most don't know is that there are in fact 3 different roles that Founders can hold in their organization. The first two are volunteer board members and paid executives, and the third is a membership role. Click the video below to learn more about holding a membership role in the organization.

509(a)(1) This includes the entities that the we generally associates with the term non-profit, including charities that receive their public support primarily from gifts, grants and donations from the community. 509(a)(2) Similar to 509(a)1 charities, these include the charities typically associated with non-profit status. However, these organizations usually receive most of their support from investments, membership dues, or program revenue. 509(a)(3) These are not publicly supported organizations, but are typically supporting publicly supported organizations. Examples include foundations created to support fire departments and police stations. 509(a)(4) These charities test for public safety, such as the American Fireworks Standards Laboratory. Private Foundation A private foundation is usually funded by one source rather than by the public, generates revenue from investments, & focuses on giving grants to other charitable organizations. An example would be Walmart Foundation.

Have you been thinking about applying for grants, but not sure if you qualify? Or, have you applied for a few small foundation grants and ready to take your nonprofit's funding abilities to the next level? Whether you want to increase your impact, start a new program, become sustainable, or go full time in your nonprofit, grant funding can help you get there. Nonprofit For Newbies can connect you with qualified grant writing coaches to walk you through grant applications or apply for grants for you. However, there are a few elements that you should have in place to ensure that you have the best chance of winning funding. This article discusses the core 4 requirements for a nonprofit organization to be considered 'grant ready'. You'll learn about the questions your organization should be able to answer and items that you should have in place. If you have questions or need assistance with any of these requirements, join our ongoing live weekly workshops here . During our coaching workshops, we will help you further evaluate your eligibility for sustainable grant awards, answer any questions, and hold your hands through the process of building a master grant proposal. You'll walk away from each session with at least one action item checked off your to do list. Side Note: Nonprofit For Newbies has created tons of free & low cost resources to help you along your journey. As an added benefit, we've hyperlinked some of our tips (in purple) to the resources that you can use to learn more about each action item. If you are truly committed to building your organization's stability, I recommend you bookmark this article, read through once, and create a checklist of all the items your organization is missing. Then, go back and work your way through the additional resources provided. If you'd like hands-on support, we meet as a community every Monday at 7 pm EST to walk through each of these steps together in our Learning Academy. Our Core 4 Grant Readiness Framework Is your infrastructure strong? What's your unique selling proposition? Is your program structured? Are you measuring outcomes? Let's get started! 1. IS YOUR INFRASTRUCTURE STRONG? The majority of grant funders will want you to have your 501(c)3 tax-exemption. If your organization hasn't received tax exemption, you have the option of seeking fiscal sponsorship. Fiscal sponsorship is when an organization that is 5 or more years older than yours partners with your organization and agrees to be your fiscal manager, enabling you to apply for grant funding. When you partner with a fiscal sponsor, the organization that is granting to you looks at your fiscal sponsors' history and not yours. So, if you're a brand new organization, but your fiscal sponsors 10 years old, they're going to count you as a 10 year old organization when they look at your grant application. This opens you up to more opportunities for funding. For example, instead of applying to $1,000 dollars seed grants, you could apply for some substantial funding. Fiscal sponsors typically require a fee because they do a lot of fiscal management and accounting for you. Typically you're looking at between 7-13% of your overall budget going into your fiscal sponsors. If you're a newer organization, your budget might be $50,000. That's not a ton of payout. Even if you don't have fiscal sponsorship, there are still funding options available for you. Your organization will focus heavily on building relationships and providing outcomes, which we will discuss in detail further down in this article. Effective mission and vision statements are also important. I have rarely seen a grant application that does not want to know your mission, and so you might in your heart, know what you want to do and how you want to do it, but funders want to see something official. Questions to Consider: Have you invested in your idea? Is your paperwork filed correctly? Do you have a clear mission and vision? Are you showing up online? Is your board of directors strong? Do you have a niche target market? Are you registered to fundraise? Action Items: Articles of Incorporation Corporate Binder with Policies & Meeting Minutes (Bylaws, Conflict of Interest Policy, Budget Policy, Executive Compensation Policy, Whistleblower Protection Policy, Fundraising Policy, Donor Privacy Policy, Document & Records Retention Policy) EIN Number 501c3 Determination Letter or Strong Fiscal Sponsor 3+ Board Members (less than 50% family) List of Board Members with Photos & Affiliations 100% Board Giving Past 990s Current W9 Mission, Vision, & Value Statement Goals & Objectives (Year 1-5) High Quality Logo Visual Style Guide Professional Website Facebook, Instagram, & Linked In 2. WHAT'S YOUR UNIQUE SELLING PROPOSITION? Advanced grants will require your organization to have partnerships and a unique reason that your organization exists. Partnerships don't necessarily have to mean you're working with an organization. But if you offer the same services as an organization, it is really cool to formalize a partnership that says "I'll provide you with this, and you'll provide me with that", for example, or if you're both serving the homelessness , say your organization and the other organization agree if you can't serve somebody, you'll send them to them, and partnerships are solidified with memorandums of understanding, which are a lot like contracts, and partner letters, which are required for a lot of different grants. We just submitted a grant that required 5 of them. So 5 major partnerships, but partnerships are really good because if you really solidify partnerships in your community, you're being seen not only by the community at large, that you already served, but you're being seen by community served by these partner organizations, and once you get these partnerships together, it can really increase the trajectory for your organization. In order to form effective partnerships, you must ensure that you are meeting an unmet need and not duplicating services. Questions to Consider: Did you ask the community what they need? Have you connected with potential partners? What makes you different than competitors? What data supports the need for your program? Action Items: Elevator Pitch Business Plan Case Statement (think of this as your elevator pitch part 2) Letter of Support Partner Agreement Letters 3. IS YOUR PROGRAM STRUCTURED? Another item that needs to be included for advanced grant readiness is a strategic plan. So, a strategic plan is a plan that takes your organization and it looks at what you are, where you are currently, where you are going to be in the next year, two years, five years, and how you're going to accomplish your goals. Your organization's strategic plan may talk about how you are going to grow the organization by partnering with local community partners, applying for grants, securing funding, and eventually get to a point where you can achieve a large goal for your nonprofit organization. Questions to Consider: Do you have a clearly defined program/service? Do you have a well thought out budget? Do you have a plan for sustaining services if one revenue source dries up? Do you have a plan for staffing your program? Action Items: Program Narrative Customer Journey Map Operational & Program Budget Fundraising/Sustainability Plan Strategic Plan (Strategies & Tactics) Implementation Plan 4. ARE YOU MEASURING OUTCOMES? Your organization must have a framework for how you collect data for your organization and who it impacts. This is typically communicated through an impact and evaluation framework, as well as annual reports, which are the graphic designed end of year reports that you send to donors indicating what your accomplished this year ( many funders actually do require them). Questions to Consider: Are you starting with what you have and navigating challenges well? Are you keeping track of who you help and how? Are you setting goals for your program? Are you keeping track of accomplishments? Action Items: Impact & Evaluation Framework Logic Model Annual Reports Organizational History & Accomplishments This seems like a lot?! Right? Well it is, but it's easily manageable if you have a knowledgeable coach to hold your hand and walk you through the process. In our academy, we offer weekly group coaching and 1:1 coaching to help your organization reach its goals! Click Here to Join Blog forwarded from free training: Intro To Grants & Funding For Nonprofit Startups

1. Canva For Nonprofits If you aren't using Canva for yournonprofit organization you aremissing out! Canva is a design toolthat allows anyone, and I do meanANYONE, to design high-impactsocial media graphics andmarketing materials. With over420,000 templates, 75 million+images, and 3,000+ fonts, Canva isour go-to for creating social mediaposts, presentations, infographics,websites, reports, posters, and flyers.Best of all, tax-exempt organizationscan apply to have access to Canva Premium 100% free. Learn More 2. Office 365 How many of us graduated andcancelled that Microsoft officesubscription immediately?! Withfree tools such as Google Docs,many don't see a need for Office 365(especially with its hefty annual pricetag!). However, in the business world, it is imperative to be able to access, view, and edit any document that was created in Microsoft. Fortunately, tax-exempt organizations can score Office 365 for as low as $1/mo. Even better, the365 cloud offers ongoing updates, so you don't have to keep paying for updated software. Learn More 3.GrantStation Did you know that most Foundations do not post their grant opportunities online? That's probably why you couldn't find any for your NPO! In fact, mostgrantseekers use a paid database tofind grants. We recommend GrantStation because it's easy to use and with NFN's connections, you can access it at only $95 for the entire year. Learn More 4. $10K Google Ad Grant Attract donors, raise awareness for your organization, and recruit volunteers within-kind advertising on Google Search. Ad Grants provides access to $10,000 US of in-kind advertising every month for text ads. Learn More 5. Professional GMAIL A professional email address goes a long way inconvincing donors that you are serious about yourorganization. Fortunately Google offers free Gmail accounts to tax- exempt organizations. Learn More 6. iPostal1 & Northwest Registered Agent When you file your aticles ofincorporation, everything that you list iseasily searched on your secretary ofstate's website. This means that if you use your home address, anyone can find it online. Although you can't use a PO Box on you paperwork, there are still other ways to protect your privacy. To avoid sharing your home address with the public, first you want to purchase a virtual office address. We love iPostal1 because they have over 2,000 mailbox locations across the U.S.and abroad, starting at only $9.99/mo. Learn More Then, you will want to hire Northwest tobe your registered agent, which means you'll never miss a legal notice. If you were to be your own registered agent, your information would also be public.We love Northwest because they offer annual compliance filings as well. Learn More 7. DonorBox In order to encourage your potential donors to take the next step and donate to your organization, a professional web presence is a must. We love donor box for its onetime and recurring donation options, option to add pictures on the donation page, and the option to describe the amount of impact each donation makes.Best of all, there are no monthly fees and donors can choose to pay the transaction fee on behalf of the organization. Learn More 8. FloDesk This is a new one for us! We have used many emailbuilders over the years, from MailChimp to ConvertKit,and have spent 1,000s of dollars sending out emails toour subscribers. When I heard about Flodesk, I wasweary. For $20/mo, I thought it was too good to betrue. But no sooner did we switch to Flodesk, oursubscribers started to respond telling us how muchthey LOVE our emails. The content hadn't changed, but the layout and design made all the difference. For nonprofits, it is much easier to retain a current donor than to find new ones, so we highly recommend you launch your website and get your email campaign started right away. Learn More 9. Honeybook If you offer any type of program that requires case management (mentoring, workplace development, financial literacy, life skills training, etc.) and you are still managing your participants with notebooks, folders, and spreadsheets ,it might be time to switch to Honeybook. We loveHoneyBook because at $9/mo (for small organizations) you can create a profile for your client, send your client forms to complete, and send emails, contracts, and invoices all in one place.Then, you can invite others staff members or partner organizations to view your client's profile and monitor their progress. Learn More 10. Quickbooks for NPOs If you're not a math and accounting wiz (or just don't have the time) Quickbooksis a great software for automatically tracking revenue and categorizing expenses, helping you maintain the great banking records that are so vital to running an ethically-sound organization. We also love that you can give your board members access to financials without having to share banking information.Nonprofits can snag Quickbooks for $75/year with a free Techsoup membership. Learn More

This extensive list takes you through the full process of starting your 501(c)3! Be sure to read through this list, check off what you've done, and go back and complete the steps that you've missed! Let's get started... Research Phase 1. You know that you want to start a business helping others and have some ideas, but have no clue where to start 2. You learn what a nonprofit is (and isn't) 3. Learn the pros and cons of starting a nonprofit 4. Develop a mission and vision statement 5. Conduct market research to figure out if your idea is needed in the community (determine key competitors) 6. Start thinking about board members (partners) 7. Write out an overview of what programs you want to offer 8. Write out short term and long-term goals for your nonprofit 9. Learn the process to starting a nonprofit Paperwork Phase 10. Research all state specific requirements for starting nonprofit 11. Choose a name and check availability 12. Recruit and structure board of directors 13. Draft bylaws and conflict of interest policy 14. File articles of incorporation 15. Apply for EIN number 16. Learn difference between long form 1023 and streamlined 1023 17. Complete 501(c)3 application Planning Phase 18. Write Program Narratives 19. Determine the price you will charge for services 20. Determine how you will deliver services 21. Determine if you will sell any products/services for revenue 22. Determine the location/space you will need to perform services 23. Determine who your target client is (who you want to help) 24. Determine how to attract clients 25. Determine potential partners 26. Determine how to attract potential donors 27. Determine how to recruit staff, volunteers, and board members 28. Determine potential partners 29. Determine roles and responsibilities of CEO 30. Determined employee roles and responsibilities 31. Determine contracted services roles and responsibilities 32. Determine volunteer roles and responsibilities 33. Determine board member roles and responsibilities 34. Determine keys to success 35. Determine objectives (desired outcomes) 36. Create startup budget 37. Create program budget 38. Create organizational budget Preparation Phase 39. Purchase a website 40. Register for a nonprofit bank account 41. Create Facebook business page and apply for donation button 42. Open tech soup account 43. Apply for Google For Nonprofits (Includes free email) 44. Apply for Canva for nonprofits 45. Set up PayPal business account and PayPal link 46. Apply for SAM.gov 47. Develop a list of startup funders 48. Develop a list of potential candidates for offices/buildings Action Phase 49. Draft and send in kind donation letters 50. Start a donation campaign 51. Write first grant 52. Host your first fundraiser 53. Contact potential partners to find out how they (or you) can help 54. Market programs and services 55. Serve clients!! Wouldn’t it be nice if you had one place where you could go to learn everything about starting and funding your nonprofit? Learn more about Nonprofit For Newbies Learning Academy

Financial literacy is essential to managing money effectively. What's that phrase.... "If you give a man a fish he is hungry again in an hour. If you teach him to catch a fish you did him a good turn " Whether you are feeding the homeless, mentoring teenagers, or cleaning for the elderly, there are two services as a nonprofit that your organization should always try to have available (or partner with a nonprofit that does). 1. Basic Needs Food, shelter, transportation, and clothing 2. Financial Education Skills that teach people to make smart decisions about their money As nonprofits, our goal is not only to provide our clients with the necessities for them to survive, but also to help them reach a point where they no longer need our services. Financial literacy is typically not taught in schools, or even at home. Especially for low income individuals, information about money management is usually learned by observation and listening to family and friends. Without a formal financial education, our clients lack a solid foundation for success. You may not be surprised to know that: Nearly half of Americans don’t expect to have enough money to retire comfortably Credit card debt has reached its highest point ever Forty percent of Americans can’t afford a $400 emergency expense Fortunately, the FDIC offers a free financial education program, FDIC Money Smart, that ensures your clients can have the tools they need to succeed. FDIC Money Smart has an individualized program for each age group, from coloring books and money management games for Pre-K, to instructor led courses for ages 60+. The program includes a full curriculum, lesson plans, resources, and materials that anyone could use, whether they are a new or experienced instructor. Click here to access FDIC Money Smart Why do your clients need financial literacy? Please share in the comments.

If you are organizing a brand new nonprofit and want to receive tax-exempt status with the IRS, you may be wondering why there are two different forms and what the big difference is. Both forms are applications for 501(c)3 status with the IRS. Keep reading to learn more about what form is best for your organization.

Step 1: Choose your target program Most organizations offer many programs and services under one mission. The easiest way for you to get others on board is to select a specific program that you are hosting your fundraiser for. This also helps when you are trying to determine outcomes. For example, you may know that selling 100 tickets for $30 will pay for a haircut for 100 homeless friends. When you are able to communicate the specific impact of your donor’s contribution you will be able to convince more individuals to get involved. You’ll want to make this information the primary message when it comes to the marketing for your fundraising event. Step 2: Identify your ideal donor and choose an event Choosing an event isn’t just about what you think would be fun to do on a Saturday. You also have to consider your ideal donor. How to identify your ideal donor? First take a look at your mission statement and who your organization serves. Then, think about who benefits from what you do. For example, if you provide emotional support and entertainment for the elderly, you may attract men and women donors between the ages of 40 and 50 who have parents that use your services. You’ll want to choose an event that fits their interests, such as a bowling tournament or BBQ throwdown. If you provide extracurricular activities for young girls, a mommy and me event would fit your donor. Think more along the lines of a basketball tournament when supporting young boys. Step 3: Create a budget and end goal Think about what you are trying to accomplish and how much this will cost. If you haven’t started your organization’s budget yet, this may require a bit of research and window shopping. Also, make sure that you have a clear understanding of what the expenses are going to be for your fundraiser. You’ll want the event to pay for itself, so If your fundraising goal is $2,000 and your event costs $1,000, you will want to let your donors know that you are raising $3,000. When you price out your budget, nail down every single detail (including the anticipated number of guests you will need in order to reach your goal) and leave a little wiggle room for unforeseen expenses. Some of the things you’ll want to consider: Marketing materials (flyers, business cards) Promotional items with your logo (t-shirts, pens, mugs) Food and Beverages Prize Table Venue Invitation Decor Staff Audio/Video Step 4: Get Sponsored Consider asking for outside help in order to accomplish your fundraising goals. You’ll want to reach out to companies that may be interested in sponsoring your event. Your first step should be to send an email or letter and follow up via phone to the point of contact describing your organization, mission, fundraiser, and offering different tiers of recognition in exchange for their financial support. Check to see what sponsorship opportunities other similar organizations in your area are offering so that you don’t price too high or too low. Tiers of recognition can include their logo on monthly newsletters, your website, promotional items such as t-shirts, providing tickets to the fundraising event, and even naming the event after them. Step 5: Find Volunteers and In-Kind Donations Recruiting reliable volunteers among family and friends and requesting in-kind donations can save you a ton of money and make it so much easier to achieve your goal. In-kind donations our donations that come as anything other than an actual financial contribution. They can be collected from families, friends, and businesses and include catering, tables, chairs, decor, services, and even venues. Step 6: Choose a venue Choose a venue that fits within your budget, will be able to comfortably fit the anticipated number of guests, and is easily accessible to your ideal donor. The best way to estimate your number of guests is to assume that 40-50% of those who are invited will actually be able to attend. When choosing your venue, make sure you are working with a company whose staff is reliable and easy to communicate with, as well as a place that has the proper audio and video capabilities for the designated event. Step 7: Market Your Event Once you’ve found a venue and have reserved a time and date, you’ll want to start promoting your event. Spreading the word about your fundraiser is crucial to its success. This can include mail invitations, email marketing, posting on social media, Facebook ads, press releases, and more. Choose a color palette and contact NFN consulting to have a logo created for your event. Set up an event page on your website and on Facebook so that your attendees can easily spread the word. The Big Day On your big day, just like any other event, you’ll want to make a checklist and make sure that all volunteers and staff know what they are supposed to be doing, so that you can focus on managing your guests. Hire a professional photographer or videographer to capture every moment of your event and encourage your guests to post on social media as well. At some point in between the fun, you’ll want to take some time to acknowledge your sponsors and speak about the impact that your organization has had on the community. It would be even more impactful if a previous client was willing to speak on how your organization helped them personally. Set up a text to donate system and encourage your guests to participate in giving during the duration of the event.