Starting a NPO Essay Example

Starting a NPO Essay The proposed Not for profit (NPO) will be a charitable organization with interests in assisting students from low-income backgrounds in their preparations for ACT/SAT.   The first step before starting an NPO is to identify the felt needs of the community.   In this case the problems and challenges majority of the people undergo while preparing for ACT/SAT is a truly felt need amongst the local community members. The above is the major reason for setting up a NPO. Lack of enough funds leads to such students’ mission opportunities which means they are likely to continue being marginalized even in the job market. The urge to help out the people is what drives the need for forming the NPO. Once the need is established, the next step involves registering the NPO in the suitable category, in this case, as a charitable organization.   The Board of Directors plays managerial roles touching on the day-to-day activities of the organization such as fund raising, financial management as well as planning (Anderson, Dunkelberg, 1990).   To select Board members, the criteria involve selection of individuals who are experienced and are of unquestionable character. The chief executive requires being experienced in entrepreneurial management and with an experience of not less than 5 years in a similar capacity. During the incorporation, filing of articles of incorporation is required; this requires signatures of the Board of Directors to be appended in the application.   The articles of association are very crucial in the setting up of an NPO since the stipulation steps necessary for amendment of laws, process such as nomination, expulsion, financial processes, management cyc le, as well as steps to follow up in winding up. We will write a custom essay sample on Starting a NPO specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Starting a NPO specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Starting a NPO specifically for you FOR ONLY $16.38 $13.9/page Hire Writer In setting up a NPO, the first thing is counter checking whether the chosen name is already in use by another group, if the proposed name is in use, then a unique name should be used and once verified, the NPO should be registered.   It is very necessary for the NPO to be filed with the local state authority through the NPO local offices.   Minutes of Board of Directors meeting and references are all necessary before setting up of an NPO and have to be produced in registration.   The identification of credible funding sources is also very crucial, in reality; a NPO has to incur costs hence the need to s solicit funds for its charitable works. The other necessary step in setting up a NPO is to identify sponsors willing to contribute towards the mission of the NPO. Sponsors can be corporate sector, churches and individuals all of which can gain from their goodwill activities in terms of receiving publicity. Once donors have been identified, one needs to establish communication structures to avoid conflicts and to ensure accountability and therefore achievement of NPO’s goals and objectives. NPOs usually are faced by financial problems and therefore are supposed to take every step to save operational costs. To minimize expenditure, NPOs can file for tax exemption. To file for tax exemption at the local tax authorities the NPO is supposed to have been incorporated with proper articles of association.   NPOs are also supposed to fill forms clarifying the purpose of the NPO as well as financial information form. Conclusion Setting up a NPO is a tedious and cumbersome exercise in the U.S. with a lot of duplicating functions, there is a need for different states to streamline the registration process in order to make it possible for those who have the will to help out in certain causes. There needs to be a one-stop shop in every state and county to help sort out all registration hassles.