Yes I said it...free. The most daunting part of starting a nonprofit is finding the resources to run your programs with a small out of pocket operating budget.
There are many reasons why you should start looking for office space as soon as possible.
1. Attract More Clients and Supporters
You need a place to serve your clients. Unlike a for-profit business, with most nonprofit services you need to get involved with your clients and donors. While in the beginning, you may get by with "pop-up shops" and utilizing free space, at some point, you will need a consistent location where clients can come and meet with you. Not all services require you to engage with clients everyday, but nothing beats face-to-face interactions. Nonprofits that operate from an office space give off a more professional image than those that work from home. The more professionally you present your business, the more serious others will take it.
2.
Increase Productivity
It is next to impossible to run an entire nonprofit organization by yourself. If you want to increase your staff, you must have the space to do it. Having a safe and effective space to meet with and train volunteers is imperative to taking your nonprofit to the next level. Not to mention the distractions that come along with working from home. Even if kids aren't home, the dogs barking, then the doorbell rings, and the refrigerator is constantly calling your name. A professional environment is conducive to growth.
3. Protect Your Privacy
As you may know, when your nonprofit is incorporated with the state and applies for 501(c)3 tax exempt status, the government asks for a business address. If you don't have an office address, you may have to use your personal address. This should be a temporary accommodation. In many states, the filed Articles of Incorporation is available online for anyone to search for and retrieve. The IRS may also make public any information that you give to them as well. Even though it is unlikely that any one is out looking for your address, it's better to be protected and keep your information private.
With all of this in mind, it is important to start looking at office space as soon as possible. But what do you do if you can't afford it? One way to get free office space is by requesting an in-kind donation from a company that has the space available. One of the most important benefits of operating a 501(c)3 tax-exempt nonprofit organization is that any donations that are made to your nonprofit are tax-deductible to the donor. Large donations, such as office space, can give donors a huge tax break and a sense of company morale. The IRS encourages in-kind donations by allowing the donating company to deduct for the fair market value of the office space. Doing good in the community and having a strong mission will increase your likelihood of receiving an in-kind donation of office space.
If your nonprofit doesn't already have a relationship with a business, then it is time to start seeking out donors and looking for the right location to serve your clients. Draft a written request for office space and explain what it will be used for and how it will be beneficial to the community you serve. Feel free to steal my template to write your donation letters. Use the first part of your letter to come up with a header that will draw your donor's attention. Under the header, write a compelling story about your organization's accomplishments, or if you don't have too many just yet, explain why your clients need your organization's help. Make sure to tell a story that will appeal to the donors' emotions and draw the reader in to read more. Follow up by letting the donor know what the office space would be used for and why you need their support. Finish by including information about the background of your nonprofit, such as your mission and why your organization was started. With a strong fundraising letter and a bit of determination and persistence, you should be sure to find a business that wants to help their community.
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Grab the Office Donation Letter Here https://docs.google.com/document/d/16-DaBKitJC53a5TJDLeIfwcJndGkgfWiAG3aON8FVFU/edit?usp=sharing
This article is just for informational purposes. It is not intended to be legal advice. Check other sources, such as the IRS, and consult with legal counsel or an accountant.