How to Set Up a Fund Raising Foundation
- 1). Find a mission that inspires both you and your potential donors. It should be a mission that truly makes a difference; enough so that others would be willing to part with their hard-earned money to make it happen.
- 2). Create a high-quality program that puts that mission into action. It's much easier to get donors if you have proven results. If you need money to accomplish your initial set of results, then come up with a solid plan to show donors. Donors want to know what will be done with their money when they make a contribution.
- 3). Find first-class board members. Your board members are responsible for keeping everyone, including you, accountable for their actions and for spending your donors' money responsibly. Great board members should bring experience, contacts and credibility to the table. Good places to look for board members include local business events, personal business contacts, and through friends. Often you'll be able to get a meeting with high-powered business people through LinkedIn.
- 4). Decide on a corporate structure. Typically, all non-profit organizations are considered private foundations. On the other hand, if you receive money from the government or from the general public, then your organization might be considered a public charity.
- 5). File for 501(c)(3) status. The most professional way to do this is to find a professional non-profit attorney or accountant to handle the paperwork for you. If you're on a budget, you can do this yourself by printing out and sending the IRS forms. Typically, you'll need the name of the organization, address you're operating out of, name of the operators, how long the non-profit will be in existence, it's statement of purpose and the names and addresses of it's board members.
- 6). Start raising money. Talk to donors one-on-one and get them motivated and inspired about your mission. Ask for donations. It helps if you can explain exactly how donating to your cause can help them with tax breaks.
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