Ever since graduating from college, I have worked in the social impact sector: first as a program assistant at a small nonprofit and now as a philanthropy consultant at Geneva Global. Nonprofits have played a vital role in my development, so I’m happy to share more about why and how you can start one.
Why Start a Nonprofit?
Philanthropy and altruism are intrinsic to who we are as human beings. Across cultures and continents, people have always found ways to care for each other, filling gaps left by governments or corporate interests. Today’s nonprofits are just one formalized structure to carry on that legacy of service.
Sometimes the systems meant to protect and support communities fall short. If you’ve identified a need in your community that no one else is meeting, starting a nonprofit can be a way to make the world better for future generations.
But it starts with a question: What’s your “why”?
Are you passionate about youth development? Food access? Racial justice? Climate resilience? Your mission should be grounded in both your values and the needs of the people you serve.
Examples of the “Why”
Many successful nonprofits were founded because individuals saw urgent needs that weren’t being addressed:
- Minds Matter was founded over 30 years ago with a simple belief: high-achieving students should have the chance to go to college. What started as a handful of students and volunteers in New York City has grown into a nationwide network of 14 chapters serving more than 1,000 students.
- Partners in Health emerged from the conviction that healthcare is a human right. Created to address gaps in healthcare for the poor worldwide, they have since facilitated millions of outpatient visits and established enduring systems of care.
- Feeding America grew out of one man’s vision to reduce food waste and fight hunger. Today, it’s a nationwide network of food banks that serves millions of families each year.
- Girls Who Code was born out of frustration with gender disparities in technology. By focusing on mentorship, coding clubs, and visibility, they’ve inspired thousands of young women to pursue STEM careers.
These stories remind us that nonprofits are often sparked by a clear sense of injustice, urgency, or opportunity for transformation.
How to Start a Nonprofit
There’s no one “right” path, but here are the main routes:
Route A: DIY with an EIN + 501(c)(3)
The requirements for launching a nonprofit in the United States are the following:
- Get an EIN (Employer Identification Number). This unique number assigned by the IRS is like a social security number for organizations. You’ll need it to open a bank account, hire employees, and file for tax-exempt status.
- Draft bylaws and a conflict-of-interest policy. These governing documents outline how your nonprofit will operate and ensure accountability.
- Identify at least 3 board members. The IRS requires this because nonprofits are meant to be community-driven. Your board should bring diverse perspectives, provide strategic guidance, and help with fundraising.
- Incorporate with your state. This step creates your legal entity and protects your board and staff from personal liability.
- Apply for 501(c)(3) status with the IRS. This can take 6–18 months, depending on IRS backlogs and your application’s completeness. While you wait, you can operate as a nonprofit with your EIN, though donations won’t be tax-deductible until approval.
Tips for Route A
- Budget for time and money. Legal fees, state filing fees, and IRS application fees can add up.
- Develop a clear mission statement early. This will guide your programs, fundraising, and branding.
- Prepare to wear many hats. As a founder, you may initially handle fundraising, operations, communications, and program delivery.
- Engage community input. The best nonprofits are co-created with the people they serve.
Route B: Start with a Fiscal Sponsor
A fiscal sponsor is an established nonprofit that “houses” your project so you can raise tax-deductible funds immediately—without your own 501(c)(3). It’s great for pilot projects or initiatives in early stages. Fiscal sponsorship can also allow you to focus more on your mission and programming early on without getting overwhelmed by the administrative burden.
Look for sponsors that are:
- Financially stable
- Mission-aligned
- Transparent and experienced
Final Thoughts: My Personal Why
For me, nonprofits have always been critical to my success and growth as a first-generation college graduate entering the professional workforce. I’ve seen firsthand how a passionate group of people can mobilize resources, shift narratives, and transform lives.
There’s so much more that can be said about nonprofits and how to be successful. You can reach out to me or my colleagues on LinkedIn, or consider checking out some of these free or low-cost resources below to learn more:
- NonprofitReady.org – Free courses on nonprofit management
- Catchafire – Find skilled volunteers
- TechSoup – Discounted tools and software
