How to Start a Nonprofit | Jackson Free Press | Jackson, MS

How to Start a Nonprofit

"Anybody can start a nonprofit. When we're talking to people, we say you have to have a passion, you have to have a drive. There needs to be a need for someone to start an organization. There's got to be a problem that's got to be solved, and that can only be solved by either your nonprofit or your nonprofit working with other nonprofits." –Kitty Cook Ramsey, Director of Development for Mississippi Center for Nonprofits

Despite popular belief, starting a nonprofit requires no more than personal drive, patience and a group of people who care. Will Webb, 20, a sophomore at Millsaps College, began his nonprofit organization, Operation Rehydration, in the summer of 2009. His idea came from a friend who traveled and volunteered at an AIDS clinic in Lesotho, Africa.

Even though AIDS is the number-one cause of death in Africa, Webb and his friend were amazed to see the vast number of children dying from dehydration. Rotaviruses and cholera—problems now uncommon in the western world—are lethal in Lesotho.

"I knew that oral rehydration salts are very cheap and can treat hydration; people are dying, and they don't need to be," Webb says. In order to change this statistic, Webb and a group of friends contacted a clinic in Lesotho and asked what they could do to help.

For as little as 30 cents a donation, Operation Rehydration is able to buy one dose of oral rehydration salts and ship it to Lesotho. Recently, the organization shipped 12,500 doses to the clinic. The organization also works to raise awareness through educating college and community organizations.

Webb's advice: "Whenever you do something charitable like this, you want to make sure you're not spinning your wheels. Make sure you're actually doing some good, and you're allocating resources where they are most needed."

Below are tips on how you can start a nonprofit and the steps Webb took to save the lives of children:

1. Find a purpose.

Webb wanted to help treat dehydrated children in the developing world. Your purpose could be providing aid to low-income families, raising awareness about an issue or providing educational opportunities for children, but clarify it specifically and focus on it.

2. Conduct independent research.

Important questions to ask yourself:
• Do people really need my service?
• Are current nonprofits already addressing this public need?
• What can my nonprofit add to what is already happening?

"The Internet is an invaluable tool, and don't be afraid to read books on the subject," Webb says. "I also made a big point of talking to doctors on the ground to make sure this was needed and how we could be most effective."

3. Make sure you have time to dedicate long term.

"When you know what you're getting into, and you know you're going to have time, and you want to spend your time doing it, then yes, anyone can do it. It's just a matter of being willing to do it," Webb says. "In the first couple weeks when we were laying ground work, we worked for four to five hours a day; after we got a routine and a schedule, it became very manageable. Now it's less than five hours a week."

4. Pick a name.

Your name should reflect your mission and what services you'll provide and to whom you'll provide them.

"Our vice president Erin Brani came up with the name Operation Rehydration, and all our board members voted on it," Webb says.

5. Form a board of directors.

Mississippi requires one board member for a nonprofit. Most nonprofits have a chief executive officer or executive director, who is responsible for carrying out the organization's strategic plans and policies.

"Our board of directors is made up of a network of college students from six universities throughout the south," Webb says. "I know them all personally."

6. Draft the GROUPS bylaws and a mission statement of how the organization operates per the board's approval.

Borrow another organization's bylaws and mission statement as a template or create your own. "The mission statement is a lot of fun. The best mission statements need to be concise, and you should be able to tell someone your mission in a short sentence," Webb says.

7. Draft articles of incorporation and set up a bank account.

The articles of incorporation are what you submit to the secretary of state's office to outline the purpose of your organization. Also, many banks such as Regions will allow nonprofits to set up a bank account free of charge.

"We drafted articles of incorporation and sent them into the secretary of state's office. Once we were incorporated, we were able to open a bank account, start raising money and apply for our tax-exempt status with the IRS," Webb says.

8. File for 501(c)(3) and tax-exempt status.

File for 501(c)(3) status with Form 1023 and Publication 557. Download the forms from http://www.irs.gov.

File for state and local tax exemption by contacting the Mississippi Department of Revenue or the Tax Commission. The Mississippi Tax Commission's Web site is http://www.mstc.state.ms.us, or call 601-923-7000.

9. Develop a budget, an accounting system and a record-keeping system.

Be organized and have an understanding of accounting. If this is too much to handle, elect an accountant to be your board treasurer.

10. Advertise and raise money for your cause.

Set up a Web site and draw people by regularly updating information about your organization's accomplishments and needs.

Talk to community artists and musicians and set up a fundraisers such as benefit concerts, T-shirt sales and information booths at events.

Ask family, friends, and churches for monetary aid.

"You'll find this out when you're on the board of a nonprofit, but you kind of exist just to raise money, and you have to be creative with your ways of doing that. It's a big chore, but it's what nonprofits live off of," Webb says.

"For the seed money, we went to churches, community service clubs and groups explaining our mission. It's a great nonprofit for college students to get excited about because it doesn't cost a lot to make a difference."

11. Have fun learning and making the world a better place.

"It's been a real fun experience, and you learn a whole lot about the law and running a business," Webb says.

For more information about Operation Rehydration, email Will Webb at [e-mail missing] or visit http://www.operationrehydration.org.

What not to do:
• Do not forget about articles of incorporation. These protect the board of directors from potential legal liabilities of the organization, in addition to making the corporation the holder of debt, not the individuals running it.
• Do not assume that you can run the entire organization alone. A board of directors is extremely important in forming a successful nonprofit.
• Do not form a nonprofit if there is not a demonstrated need or if another similar organization exists.

How to avoid compassion fatigue:
• Take care of yourself. Exercise, eat healthy, drink plenty of water and get plenty of rest.
• Manage your time wisely. Say "no" if you do not have time to do something.
• Pick your battles. Fight for the most important things first and the least important last.
• Surround yourself with people who care about you, listen well and contribute to your self-esteem.
• Think positively, not negatively.

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