Starting a Nonprofit

Useful Links

For more information regarding the steps to start a nonprofit, visit National Council of Nonprofits.

Other Resources:

• CANDID - Nonprofit startup assessment | Candid Learning
• NPQ - https://nonprofitquarterly.org/to-501c3-or-not-to-501c3-is-that-the-question/

Starting a Nonprofit

The Center does not assist organizations with the application for 501(c)(3) tax-exempt status.

We can help you understand the process to gain 501(c)3 status and offer several helpful resources.

For legal issues regarding establishing a nonprofit, please contact the Toledo Bar Association’s program, Non-Profit Connect, to apply for assistance.

Before filing to establish a nonprofit with the appropriate state and federal agencies, The Center recommends the following steps:

• Do Your Research

Identify other organizations with same or similar mission. What can you learn from them?  Would you be filling a gap in services? How are your mission and services different?

• Develop a Strategic Plan
  Clearly define how your organization will achieve its mission. A solid plan provides direction and serves as the foundation for all other decisions.
• Prepare a Budget
  Build a realistic budget based on your strategic plan. This will help you determine how much funding you need to operate your nonprofit effectively.
• Identify Potential Funding Sources
  Research and evaluate possible sources of funding to assess your nonprofit’s financial sustainability. Consider the following categories:
  • Individuals
    Research shows that most of the nonprofit funding comes from individual donors. Do you have a list of people who are likely to support your organization? Have you estimated how much they might contribute?
    • Grants
    • Foundations
      Identify grant opportunities from private, community, or family foundations that align with your mission.
    • Corporations
      While corporate support is typically the smallest portion of nonprofit funding—often in the form of sponsorships—it can still be a valuable source.

Grants are highly competitive, could be time-consuming and most are awarded for one year. Most funders do not award grants to start-up organizations since a history of success cannot be evidenced. 

Your local public library can be a great resource for accessing databases to help you research and identify potential funders. For services in Lucas and nearby counties, click here to access the library services addressing Small Business and Nonprofits.

Important Considerations:

• Most start-up nonprofits fail due to a lack of funding and a comprehensive, well-thought-out plan.
• With over 4,000 active nonprofits in the Toledo area alone, launching a sustainable organization is challenging.
• Funding sources are limited, highly competitive, and often come with strict requirements and restrictions.
• Filing the paperwork is the easy part. Successfully running a nonprofit takes time, dedication, strategy, and ongoing effort.

Alternatives to Starting a Nonprofit Organization

• Identify an existing 501(c)(3) organization willing to partner with you and act as a fiscal sponsor for the program you want to start.
• Volunteer, join a board or even become a staff member of a similar organization in your area that is doing the work you would like to do and find out what it takes to run a program and/or a nonprofit organization. Nonprofit jobs. Volunteer.
• Create a special program at an existing organization. Meet with area nonprofits to explore creating a special project or initiative and negotiate your involvement. They may even be able to collaborate in grant writing.
• Open a donor advised fund at a Foundation like the Greater Toledo Community Foundation, so that you can make tax deductible donations to the fund and direct those funds to nonprofits that are doing good work in the sectors you are most passionate about. A donor-advised fund offers the opportunity to create an easy-to-establish, flexible vehicle for directed charitable giving, as an alternative to starting your own foundation or organization.
• Start a local chapter of a national or regional organization, where the headquarters acts as the nonprofit fiscal agent.

For additional information, please submit a Nonprofit Consulting Request Form.