Are you keen to set up a non-profit organisation? Setting up a charitable business is a great way to make a living while helping others. It can be extremely satisfying and rewarding, but without adequate planning and research, it can also be extremely challenging.
Here, you’ll discover some of the main things to consider before starting a non-profit organisation.
Is there a need for the service you’ll be offering?
The first thing you should look into is whether there’s actually a need for the type of non-profit you’re looking to create. If you haven’t already, look up local charities in your area to see what’s currently on offer. If there are similar organisations out there, will you be offering something different?
Establishing the need for the type of charity you’re looking to set up is crucial if you want it to be a success. You should also look at whether there’s any better ways to help than by starting a non-profit organisation. Is a charity really the best way forward?
Do you understand the legalities?
Understanding the legalities of non-profit organisations in your area is also important. When it comes to starting a charity, it isn’t as simple as you might think. Recently, the public sector has been provided with the opportunity to operate with the same type of freedom as the private sector. However, while this can deliver clear benefits, it’s crucial to get it right.
For this reason, you’ll want to research as much as possible and seek advice from local authorities and independent advisors. That way, there will be no nasty surprises when it comes to opening and operating the organisation.
Finding the right funding
One thing you’re likely going to need help with is finding the right funding. Each county within the UK will have its own funding rules and opportunities. For example, Manchester has the “Forever Manchester” funding and support for community activities. So, it’s worth taking a look at this to see whether there’s funding available for the type of charitable business and activities you’re setting up.
Government based funding is available, but it’s much harder to get these days. A lot of charities have seen their funding dramatically cut in recent years. So, you may want to turn to alternative sources such as crowdfunding. This has become a really popular way to raise the funds you need, without having to pay a huge amount of interest. Crowdfunding tends to be one of the best ways to fund a charitable business in today’s digital world.
Overall, setting up a non-profit organisation is a valuable and selfless thing to do. However, when you take into account that fewer than half of the non-profits which are set up, manage to operate for longer than 5 years, you soon see the challenges the industry faces. Problems with running costs tend to be the biggest issue faced. So, figuring out how you will sustain the charity should be one of your foremost concerns.