How to Start a Nonprofit Charity

Nonprofit applications have been under greater IRS scrutiny in recent years, so Mancuso recommends being scrupulously honest in describing what your charity will do. One other tip: Request an advance ruling that will allow you to operate as a 501(c)3 sooner.

3. Register to raise money. If your nonprofit intends to solicit the public for donations, the organization must register as a charitable solicitor in many states. Obtain forms from the attorney general, secretary of state or other appropriate agency.

4. Convene a board. To qualify as a nonprofit, a board of community stakeholders must be created to help the nonprofit raise money, hire staff, shape group direction and meet goals. The board should not consist of personal friends or people with whom the charity does business.

5. Write bylaws. The bylaws describe your nonprofit's operating procedures. Again, standard forms are available from your secretary of state or state corporations office as a starting point.

Though many people hire a CPA or attorney to help manage the paperwork, you can do it yourself with the help of basic how-to books such as Mancuso's. Otherwise, you can start by trying out your idea as a program or project of an existing nonprofit, which can handle your accounting chores until your group is ready to spin off.

Nonprofit Organization Help Station

Books, organizations and Web sites to help you get started

• How to Form a Nonprofit Corporation by Anthony Mancuso

• Starting and Running a Non-Profit Made Easy by David H. Bangs

• Association of Fundraising Professionals: Ethical standards, training and resources for nonprofit fundraisers.

• BoardSource: Resources to strengthen nonprofit boards

• Foundation Center: Information and viewable tax forms of grant-making foundations

• GuideStar: Comprehensive database of nonprofits, with viewable tax forms

• The Idealist: Extensive online resources for those starting and operating nonprofits

• IRS: Tax information for charitable organizations.