Charitable organizations exist and work for the social well-being. The main goal of a charitable organization is to work for the public good and carrying out operations that are of religious, educational and common good nature. There are certain laws that must be followed by every charitable business or organization. These laws (though having some similarities between them) can vary from country to country and so does the legal definition of a charitable business. A charitable business must not in any circumstances pay for the welfare of its own leadership or any individual entities. Most of the charitable businesses depend on charities from major business corporations in order to run smoothly and achieve their goals. Charitable businesses are usually exempt from tax payments only if they completely fulfill the criterion of a charitable business in the first place. So if you are someone who is willing to help people or support a certain cause, then starting a charitable business or organization is the way to go. Although starting a charitable business is a big undertaking and not exactly what you will call an easy task, there are certain roadmaps that you can follow to get your charity up and running with good effort on your part. This article will explore the steps that you can take to start your own charitable business.

Setting up a charitable business

Before we start, keep in mind that there are no hard and fast rules that you have to follow to setting up your own charitable business or any sort of business for that matter. Setting up any sort of business is not an easy task and you will likely face some obstacles in your way. It will take considerable effort on your part and it will take some time before things start running as envisioned. With that said, let’s have a look at how you can set up a charitable business.

• Define your charity mission and type

If you are going to start a charitable business, then it is important that you first work on your vision of what you want it to be. Whenever you are going to prepare a business plan for launching a business, it is imperative that you take your time to do your research. The same thing is true for a charitable business or organization. Most businesses begin with an idea. If you have a brilliant idea in your mind that can help in serving the cause you care about and help people with it, then it’s important that you go over the finer details of your plan before putting it to action. It is also important that you decide the kind of charitable business you want to run. There are different kinds of charities that serve different purposes. For example, animal charities work for the protection of wildlife, an educational charity for supporting students who can’t afford their education, a health charity to fight against certain diseases like cancer etc. Also decide the nature of your charitable business i.e. whether you want it to be a public organization or a private one.

• Choose a name for charity

The next step will be deciding the name of your charitable business or organization. A good name is pretty much an important requirement for any business. The name should be distinct so that it stands out from other businesses of similar nature. This makes sure that your donors won’t have any trouble finding you. Also make sure that they selected name is not too complex so that it can be easily remembered by people. There are certain things you have to follow while naming your charitable business. First things first, make sure that your selected name is not already taken by someone else operating in your state. If that is the case, then your name will not be approved by the secretary of state’s office. You can contact with the Department of commerce to make sure just in case. The name of your charitable business must end with the words limited, corporation or incorporated. Also certain words are banned in some states and thus can’t be used for an organization so make sure that you do your research. You can go to uspto.gov to run a trademark search or to see if your intended trademark is already in use. Also check out GuideStar.org to see if any other charities have similar names.

• Register with the IRS

After the planning procedure is complete, it’s now time to put your plan into action. The first thing you need to do is to register your organization with the IRS. Your paperwork will mention the fact that you are a charitable business and thus should receive exempt status from your state. Exempt status basically means that as a nonprofit charitable business and organization, you will receive reduced or complete relief from tax depending upon state laws. According to IRS: “The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.” The organization must first go through a complete procedure before they are given tax exemption

• Set up a website

The next thing you need to do is to spread awareness for your cause and organization and the best way to do so is by creating your own website. Now-a-days, people spend most of their time on the internet, thus having an online presence is a must. Your website should be designed to be professional to ensure that you mean business. Also make sure that is user friendly and easy to navigate. Don’t make things too much complex as it can be turn off. Be active in your response to customer requests through phone or emails. You can hire a professional to create your website for you or you can do it on your own by picking templates form sites such as Theme Forest. Make sure that your website has a portal that allows people to directly donate to your cause. Also list any volunteering opportunities to let people know that they can be of help.

• Start fundraising

Finally, we have arrived the actual meat of running a charitable business or organization. It’s time to start the raising funds for your cause. To make sure your charitable business is successful, you will need to raise funds on a consistent basis. In fact, most organizations don’t start their operations until they receive sufficient funds that may take a few months to collect. You can raise funds by doing fundraising events or collect donations by allowing people to donate on your website. You can take multiple approaches to raise awareness for your fundraising. The best tool, of course, is social media that will allow you to extend your reach along with your website. You can also pay for marketing and advertising and run PR campaigns. Establishing a GoFundMe.com campaign also won’t be a bad idea.

Conclusion

By following these simple steps, you will be on your way to start your own charitable business. It is important to do your research and formulate a good business plan before you start putting your plans into action. It is also possible that you may experience a slow start in terms of donations in the beginning period. Always remember that making good business decisions, acting with patience, using the donations in the right way and being disciplined will help you to launch and run your charitable business successfully.