Starting a nonprofit organization can be the most incredible challenges a person can make, but just as rewarding. You can not only help those in need in your own community, but also in other communities. Whether it’s helping people, animals, or something in between, it can be a wonderful, lifetime experience.

With this in consideration, if you want to have an organization that is going to stand the test of time, then there are mistakes that a lot of people make that you want to avoid. Be sure to know these top mistakes people make when starting a nonprofit:

 

1. 1. First up is knowing what you’re getting into. While you may have a passion for animals, or volunteer in your local community for other charities, starting your own is going to take most of your effort and a lot of knowledge of what your organization is going to be about. You need to know what you’re doing.
2. 2. The next big mistake that people make when they are starting a non profit organization is fundraising. It costs a lot to keep an organization going, and if you believe you can do it on your own, you will end up spending your life savings, taking out loans that will be hard to repay, and putting yourself in a hole trying to help other people. One of the things that people don’t do is fundraising as frequently as possible, and in places where there is going to be a lot of people. One thought, try setting up at fairs, craft shows and concerts. In many cases, if you tell the organizers that you are a non profit group seeking fund raising, they will often let you set up a booth for free.
3. 3. Additionally, the lack of fund raising, many people don’t utilize all of their resources, or even know about them when it comes to getting money to run you group. There are tons of grants, and programs available from the government, on both the state and federal levels. It is important that you send in as many requests as possible, to get the money you need.
4. 4. Another big mistake that people make is hiring the wrong people. Sure you want to get your friends and family involved in your cause, but there are times when problems may arise, and this can destroy relationships. Hiring strangers needs to be done delicately as well, because there are some unscrupulous people out there that are bent on taking your organization’s money. You need to investigate and make sure these people have your best intentions in mind.
5. 5. When you are starting a nonprofit, one of the most important things that many people don’t think about is tax exempt status. It is important that you go down to your local tax office and get a tax exempt identification number immediately. What this does is allows you to make purchases, big or small, without having to pay sales tax. This is important, especially if you are making big purchases like computers software, and even vehicles.

Now this isn’t supposed to deter you from starting a nonprofit organization, by no means. However, in order to succeed, you want to avoid making mistakes, and these just some of the things you want to be aware of.