The Olin Group is dedicated to raising the standard of business practice among nonprofits and to fostering collaboration and resource sharing throughout the nonprofit community.
In our work with nonprofits, we recognize the struggle that agencies face operating on a day-to-day basis. The ability of organizations to meet growing social needs is becoming increasingly challenging, as traditional sources of income decline. We support nonprofits in their efforts to find diversified sources of income to sustain operations, as well as exploring new business models to carry their missions more effectively into the community.
And while we offer an array of services to all types of nonprofit agencies, we recognize that new nonprofits and evolving charitable projects have unique needs. If you are a new nonprofit or are thinking about seeking a 501(c)(3) designation from the Internal Revenue Service, and you are seeking supportive services, it is important to prioritize your needs and to do a realistic assessment of the resources available to help you. |
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When incorporating or applying for your 501(c)(3) tax status, The Olin Group strongly recommends
seeking legal guidance. Legal counsel will ensure that all forms and documents requested by the
government are completed as required. Before you begin your application process, your organization
will need to create a business plan and this will in turn help develop the narrative for your 501(c)(3)
application. Friends and mentors often can serve as free resources to help talk through your plan, and make sure you check with your local public law center for free legal resources for nonprofits. A
business plan should be thoroughly researched, addressing the needs of the community (Why is your
program important?) and the feasibility of the program (Who will fund this project and is it sustainable?
Is your mission clear and actionable?). Some states also require that a nonprofit file Articles of
Incorporation and still fewer may require that you submit paper work for state tax exemption. California
is one of those states. Once you have your 501(c)(3), you can begin to seek donations that are tax
deductible to your donors, and apply for larger grant amounts to build your programs and
infrastructure. |
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Please see our Resources section for
more information about this topic. |
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Getting your 501(c)(3) letter from the IRS is a great achievement. But now the real work begins. As you begin to create your infrastructure so that you can achieve your mission, you will need to grapple with some of these larger questions.
- Who/what is the basis of any financial support?
- Do we have an angel investor? A first donation?
- Do we have an income stream tied to our services? Social enterprise?
- What kind of Board do we want?
- What is our fundraising plan?
- How can we best use volunteer support?
- How do we capture and measure our yearly achievements?
- Who needs to be aware of our services?
- What other nonprofits can we partner with?
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Please see our Resources section for
more information about this topic. |
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This is a critical time in the life of a nonprofit. Not only do new nonprofits have to work to create systems and invest in their ability to provide services in the community, they also have to find a way to fund those activities and broadcast to potential donors that they are working in the community. Among the competing priorities of a newly incorporated nonprofit are:
- Fundraising – pursuing individual and grant donations right out the gate is critical
- Financial Planning – getting your systems and consultants in place early will save you a lot of headache down the road
- Service Provision – if you cannot provide services immediately, you need to be able to speak to your plans (and timeline) to bring your services to the community.
- Volunteer Recruitment – chances are you will need to rely on volunteers before you can rely on trained staff. Committing to recruitment, retention and training will provide you the early capacity you need to function.
- Capacity Building – identify the large investments you will need to solicit to grow your business
- Systems Creation - identify the systems that you will need to function effectively, and work on building them/investing in the now
- Community Outreach – it is critical that the community knows you are available and working; marketing might be out of reach at this stage, but there are plenty of ways for you to communicate your presence to the right people for free.
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