Start right. Stay standing. Get read by money.
People ask us three things: how to start a nonprofit, how to set up an office of sustainability, and how to become credible to money. Here are the answers, in the order you need them, with the templates to do each step. A person is close by the whole way.
Start Right
How do I start a nonprofit?
You already know the people, the need and the work. Many of you have been doing it for years without a name on the door.
Why this comes now
The legal home comes first because every funder asks what entity will hold the money. Get this right once and you never argue with it again.
The steps
- Decide: your own nonprofit, or a fiscal sponsor firstA fiscal sponsor is an existing nonprofit that holds money for your project. It can get you funded sooner while you build.
- Incorporate as a nonprofit corporation in your stateEach state has its own form and fee. Check your state's secretary of state website.
- Get an EINYour federal tax ID number. It is free from the IRS. Never pay a site to get one.
- Adopt bylaws and a conflict-of-interest policyYour board adopts both at its first meeting and records the vote in minutes.
- Apply for 501(c)(3) recognitionFile Form 1023-EZ or Form 1023 with the IRS, depending on your size.
The facts to know
- Form 1023-EZ is filed online only and is for smaller organizations: generally projected annual gross receipts of $50,000 or less for the current year and the next two, and total assets of $250,000 or less.
- Everyone else files Form 1023.
- There is a user fee. Check the current fee on IRS.gov before you file.
- After recognition, you file the Form 990 series each year. The smallest organizations file the 990-N e-Postcard.
- Many states also require charity registration before you ask the public for money. Check your state.
Templates for this stage
- Start-Right Decision Sheet
- Founding Documents Checklist
- Bylaws Outline
- Conflict-of-Interest Policy Starter
- First Board Meeting Agenda + Minutes
Done when
You have articles filed, an EIN, adopted bylaws and a conflict policy, and a filed 501(c)(3) application, or a signed fiscal sponsor agreement.
Set Up Your Office of Sustainability
How do I set up an office of sustainability?
You already know how to stretch a dollar and keep the work going. This stage writes down the systems you are already carrying in your head.
Why this comes now
Money follows systems. Before you ask for more, show that the money you have is owned, tracked and filed on time.
The steps
- Name who owns money decisionsWho approves, who pays and who reviews. Different people where you can.
- Keep a simple ledger by funding sourceEvery dollar in and out, tagged to the funder it belongs to.
- Build your Funder FolderArticles, bylaws, EIN letter, determination letter, latest 990, board list, budget, and audit or financial statements if you have them.
- Set a yearly calendarYour 990 date, state renewal, board meetings and every report due.
- Write your Sustainability PlanHow the work continues: what it really costs, the labor no one has priced, and where the next three years of money come from.
Templates for this stage
- Funder Folder Checklist
- Yearly Compliance Calendar
- Simple Ledger by Funding Source
- Money Roles One-Pager
Done when
One person can answer any funder's document request in a day, and you have a written plan for how the work continues.
Be Credible to Money
How do I become credible to money?
You already know your work is real. This stage makes sure a funder can see that before they read a word.
Why this comes now
Many funders look you up first. What they find decides whether they read your proposal with trust or with doubt.
The steps
- Fix what a funder checks firstA clear website, board list, EIN, latest 990 and a real contact. Complete your Candid profile.
- Turn outputs into outcomesNot only how many came, but how many enrolled, attended, how often and how long they stayed.
- Right-size the askMatch the request to what your budget can carry. The worksheet shows you where the line sits.
Templates for this stage
Download this stage's templatesDone when
A funder who looks you up finds a complete, current footprint, and your numbers show change, not only headcount.
Make the Ask
How do I ask for money with confidence?
You already know what the work needs. Now you ask for what it costs, in the language money reads.
Why this comes now
With a legal home, working systems and a credible footprint, your ask is read as a plan, not a hope.
The steps
- Draft it free with Grant BuilderAnswer plain questions and get a first draft built from your own words.
- Take one project to funding in The Room$495, or $295 with the founding code FOUNDING. Your $149 Sustainability in a Box credit applies.
- Bring in FrederickaFor the high-stakes ask, a review and a next-step call with Fredericka.
Templates for this stage
Download this stage's templatesDone when
You have a sized, budgeted ask on its way to a funder who can read it.