Posts filed under ‘Getting Started’
Things to Remember When Starting a Business
Believe in what you do or don’t do it. It’s that simple. We only get one life to be who we are called to be, so if you are passionate about a certain topic, whether it’s helping kids or selling tofu, give it all you have, and then make a commitment to finish what you start!
Distractions are temporary! There will ALWAYS be a handy excuse preventing you from fulfilling your dreams. Don’t allow temporary distractions to strip you of fulfilling your life’s dream. If you know what you want to do, then DO IT. Money isn’t everything. Many organizations and businesses start out on a shoestring budget. It takes hard work and persistence, not a big bankroll. A little internet research will find you many low-cost resources to get you started – all it takes is you doing it!
It’s okay to start out small. If you want to sell herbs, you don’t have to build a 10,000 sq. foot greenhouse. Start one plant, grow it, sell it, and then plant another. That’s the way all businesses grow. One day at a time, one-step at a time, and then one day you’ll look up and discover YOU DID IT!
Never give up on a dream. Do you know how many times Edison failed before he succeeded? What if he would have given up, would we still be living in a dark world? Of course not. You have a great idea, but if you give up, somebody else will succeed and live the dream you only imagined.
Free and Low-Cost Business Resources
- Get a Plan – Business plans are easy to write if you know the basic outline. My Own Business, Inc. is a nonprofit organization committed to helping people succeed in business. This organization is a great place to get your feet wet, offering a free course in business start-up, creating a business plan, and all the other little details people often don’t think about when they start a new business. http://www.myownbusiness.org
- Strategy Session Self-Assessment – Whether you are in the planning stages or just getting started, want to launch your next phase of business growth, or have experienced business losses but aren’t ready to throw in the towel, A Mighty Ventures Strategy Session is one of the smartest things you can do for your business. http://www.strategysessionnow.com/
- Organize – However you decide to organize your business, Secret-Angels can help walk you through the process and mentor you step-by-step. https://nonprofitassistance.wordpress.com/need-help/
- Get a Website – Don’t think it’s too complicated! Domain Registration and Hosting is getting easier and cheaper every day. Most hosting companies offer cheap website builders, which means you can have a website up and running in minutes. Gossimer LCC offers domain registration, email hosting, website hosting as well as an easy to use website builder. Once you register your domain (usually under $10 dollars per/year), your website can cost as little as $2.99 per/month through Gossimer Web Hosting. http://gossimer.biz/
- Start Networking – The greatest way to market your business is to get out there and start selling it yourself. Nobody will ever have the same drive or commitment that you do, and it’s easy to talk about things that you are passionate about. The internet is full of free Social Media Sites, such as:
a. Linked In – http://www.linkedin.com/
b. Blogging Sites – http://www.wordpress.com/
c. Other Social Media Websites
i. www.Facebook.com
ii. www.Myspace.com
iii. www.twitter.com
There are countless others, for a more comprehensive list visit http://www.prelovac.com/vladimir/top-list-of-social-media-sites or just Google Social Media Websites and browse through them yourself!
Board of Directors
The Purpose of a Board of Directors
Your organizations board of directors will help manage, discuss, implement and maintain your mission and goals. They should be able to attend regular meetings to ensure successful organizational planning and see that all resources are managed effectively.
Directors supervise all aspects of the organizations operations and evaluate its performance and success. Directors need to follow all activities that affect the mission or goals. All directors must be able to set aside any potential conflict between their personal or individual business interests to support the ongoing growth of the organization.
A Board of Directors gets its authority from the articles, which will be discussed in the next lesson. This governing document specifies, for example, its name, the purpose or mission of the organization, place of business, primary officers, etc.
Duties of a Board of Directors
Several states have statutes adopting duties, which can be used in court to determine whether a board member has acted improperly. These standards are usually described as the duty of care, the duty of loyalty and the duty of obedience.
Duty of Care
The duty of care describes the level of competence that is expected of a board member, and is commonly expressed as the duty of “care that an ordinarily prudent person would exercise in a like position and under similar circumstances.” This means that a board member owes the duty to exercise reasonable care when he or she makes a decision as a steward of the organization.
Duty of Loyalty
The duty of loyalty is a standard of faithfulness; a board member must give undivided allegiance when making decisions affecting the organization. This means that a board member can never use information obtained as a member for personal gain, but must act in the best interests of the organization.
Duty of Obedience
The duty of obedience requires board members to be faithful to the organization’s mission. They are not permitted to act in a way that is inconsistent with the central goals of the organization. A basis for this rule lies in the public’s trust that the organization will manage donated funds to fulfill the organization’s mission.
Requirements of a good Board of Directors
The people you elect to serve on the board of directors should have:
· Passion about the mission
· Knowledge of all the ins and outs of the organization
· A wide variety of expertise
· Understanding of the overall mission and vision
· Commitment to the mission and it’s goals
· Time available to serve the organization
Job Descriptions of a Board of Directors
Most states require at least 3 members on the board of directors, which constitute the organizations officers. These must include a president (board chair) and a secretary. For this lesson I am including the basic job descriptions of the President, Vice President, Treasurer, Secretary and the basic Board Member
PRESIDENT / CHAIR / CHIEF VOLUNTARY OFFICER (CVO)
(adapted from The Board Café)
General: Ensures the effective action of the board in governing and supporting the organization, and oversees board affairs. Acts as the representative of the board as a whole, rather than as an individual supervisor to staff.
Community: Speaks to the media and the community on behalf of the organization (as does the executive director); represents the agency in the community.
Meetings: Develops agendas for meetings in concert with the executive director. Presides at board meetings.
Committees: Recommends to the board, which committees are to be established. Seeks volunteers for committees and coordinates individual board member assignments. Makes sure each committee has a chairperson, and stays in touch with chairpersons to be sure that their work is carried out; identifies committee recommendations that should be presented to the full board. Determines whether executive committee meetings are necessary and convenes the committee accordingly.
Executive Director: Establishes search and selection committee (usually acts as chair) for hiring an executive director. Convenes board discussions on evaluating the executive director and negotiating compensation and benefits package; conveys information to the executive director.
Board Affairs: Ensures that board matters are handled properly, including preparation of pre-meeting materials, committee functioning, and recruitment and orientation of new board members.
VICE PRESIDENT / VICE CHAIR
(adapted from The Board Café)
General: Acts as the president/chair in his or her absence; assists the president/chair on the above or other specified duties.
Special Responsibilities: Frequently assigned to a special area of responsibility, such as membership, media, annual dinner, facility, or personnel.
Some organizations choose to make the vice president, explicitly or implicitly, the president-elect.
TREASURER
(adapted from The Board Café)
General: Manages the board’s review of, and action related to, the board’s financial responsibilities. May work directly with the bookkeeper or other staff in developing and implementing financial procedures and systems.
Reports: Ensures that appropriate financial reports are made available to the board. Regularly reports to board on key financial events, trends, concerns, and assessment of fiscal health.
Finance Committee: Chairs the Finance Committee and prepares agendas for meetings, including a year-long calendar of issues. In larger organizations, a separate Audit Committee may be chaired by a different person.
Auditor: Recommends to the board whether the organization should have an audit. If so, selects and meets annually with the auditor in conjunction with the Finance and/or Audit Committees.
Cash Management and Investments: Ensures, through the Finance Committee, sound management and maximization of cash and investments.
Board Secretary Job Description
The following description was adapted from materials from the National Center for Nonprofit Boards.
1. Is a member of the Board
2. Maintains records of the board and ensures effective management of organization’s records
3. Manages minutes of board meetings
4. Ensures minutes are distributed to members shortly after each meeting
5. Is sufficiently familiar with legal documents (articles, by-laws, IRS letters, etc.) to note applicability during meetings
Board Member Job Description
(The following description was adapted from materials from BoardSource)
1. Regularly attends board meetings and important related meetings.
2. Makes serious commitment to participate actively in committee work.
3. Volunteers for and willingly accepts assignments and completes them thoroughly and on time.
4. Stays informed about committee matters, prepares themselves well for meetings, and reviews and comments on minutes and reports.
5. Gets to know other committee members and builds a collegial working relationship that contributes to consensus.
6. Is an active participant in the committee’s annual evaluation and planning efforts.
7. Participates in fund raising for the organization.
All information provided is for educational purposes only. If you forward this information please leave copyright and disclaimer intact
Basic Startup
Steps to Form an Unincorporated Nonprofit
1. Develop vision and mission statements
2. File articles of association if required by your state
3. Obtain an employer identification number (EIN)
4. Open a bank account and establish check signing procedures
5. Establish an accounting system
6. Develop an overall fundraising plan
Steps to Form an Incorporated Nonprofit
1. Develop vision and mission statements
2. Establish bylaws and board policies
3. Select individuals to serve on the board of directors
4. File the certificate of incorporation
5. File for federal tax exemption
6. Follow state and local nonprofit regulations
7. Procure necessary insurance coverage
8. Establish an accounting system
9. Develop an overall fundraising plan
Types of nonprofits
Types of nonprofits:
· Unincorporated associations
· charitable trusts
· corporations
Advantages and disadvantages:
Unincorporated associations require less paperwork and are not as closely regulated or monitored by the IRS. Laws have recently (1999) changed (see the UUNA Act) to protect unincorporated nonprofit founders from being personally sued as well as allowing them to hold assets such as property. Before this law went into effect liability was one of the greatest disadvantages of not incorporating. It is difficult to receive tax-exemption without incorporation and nonprofits without exemption are not eligible for most grants. Charitable trusts can be recognized as tax-exempt, but they are at greater risk from personal liability Corporations require much more time, money, planning and organization. Your organization will be completely under the control of an elected board of directors (or board of Trustees). Founders are covered from personal liability.
Five Reasons to Incorporate – (source www.nolo.com)
1. Your Association Makes a Profit From Its Activities
2. You Want to Solicit Tax-Deductible Contributions (tax-deductible being the key word)
3. You Want to Apply for Public or Private Grant Money
4. You Want Protection From Personal Liability for the Group’s Activities
5. Your Advocacy Efforts Might Provoke Legal Quarrels
Goals and Projects
The best way that I have found to start any new project is to start writing it down! Go buy yourself two small spiral notebooks that you can carry with you everywhere. The first notebook is a CREATIVE JOURNAL. Start your creative journal with a question… What PROBLEM do I want my mission to ANSWER? With that question, start a running list of notes, ideas, goals, projects and similar organizations. ANYTHING relevant to your idea, the problem, or the solution. This will help you develop a broad mission statement. Any changes to your articles of incorporation or your mission will cost you money in the future, so it’s best to be as broad as possible to consider the twists and turns your organization might eventually take.Take another page and imagine that you have ALL THE MONEY IN THE WORLD. Start listing projects that you think would help solve your problem, no matter how far-fetched. DO NOT question, evaluate or criticize these ideas. Keep this journal with you at all times! You would be amazed how many ideas come to you while sitting in traffic! This journal should be on-going. Reread it often to refresh your mind during lulls of inspiration.The other notebook will be your GOALS & PROJECTS. Pick at least three projects/goals that you believe will be the easiest to implement or the most beneficial. Prioritize according to the values you MOST want to establish through your organization. For each project ask yourself these questions:
1. What makes this idea original?
2. What needs am I answering?
3. Who do I want to reach?
4. When do I want to reach this goal?
5. How do I plan to reach this goal?
6. Define the biggest roadblocks and obstacles between you and your goal.
Then write AT LEAST one daily goal per day (Monday – Friday) to accomplish this project and overcome the roadblocks ( you can be as brave here as you want to – I personally get more satisfaction from going above and beyond my daily goal rather than having a list of goals I never get completed). I try to do all my goals for the week on Sunday and lay them out in order of importance. Day-to-day issues come up, they are and always will be unavoidable. Try not to lose site of what you are trying to accomplish but remember that YOU are the master, the DEADLINE is not. All things in God’s time not ours ;o)
Nonprofit Assistance 