The Southeastern Connecticut chapter of SCORE is a non-profit organization that offers free guidance and counseling to people who want to start-up or better run their small businesses. Each year we meet with hundreds of clients in one-on-one mentoring sessions, at free SCORE workshops, and in online counseling. Our goal at SCORE is to help your business be successful.

Many people seek help from SCORE in starting a non-profit. They share a strong desire to help others in their community and seek guidance on how to start and run their non-profit like a successful business with defined goals, strong financial management, and sources of income that will sustain their organization. Here are 7 steps SCORE recommends to help you get started. 

1. Know what defines a non-profit: An organization that exists to serve the public for educational or charitable reasons. Any money earned by a non-profit organization must be used for its own expenses, operations, and programs. Many non-profit organizations seek tax exempt status under the Internal Revenue Service tax code 501(c)(3). Learn more at the IRS website https://www.irs.gov/charities-non-profits. 

2. Write a mission statement: Your mission statement defines the purpose of your non-profit organization, why there is a need, and who you will serve. Make sure you aren’t duplicating existing non-profits. Individual donors, corporate sponsors, and grant funding organizations may be reluctant to support a new non-profit that offers the same services as others.

3. Make a plan: Once you’ve defined your mission, create a plan of start-up priorities, sources of funding, and who and how you will manage your non-profit. To help set your goals, answer these key questions: Will these programs and activities:

Support your mission?

Generate operating revenue?

Increase awareness for your organization?

Attract new donor and volunteer supporters? 

4. Create a Board of Directors: The board oversees the key activities of the non-profit to insure financial stability, legal and ethical responsibilities are followed, and that all operations and programs are run effectively. A non-profit board is made up of volunteers and has at least three officers serving the role of President, Secretary, and Treasurer. Other board members can be added as needed with each having a well-defined role. 

5. Use success metrics to quantify the results you want: How much money do you need to raise from this event? How many donors or members are necessary to support your cause? What is the number of volunteers required to run the operation? By including and tracking these “success metrics,” you’ll have the data needed to run important programs. 

6. Develop a fundraising to-do list: All successful non-profits work hard at generating enough operating revenue to sustain their organization and support their mission. Add someone on your team with fundraising expertise to:

Create and maintain a donor database with contact information and segment new donors from past donors, amounts given, whether donors are individuals, companies, grant funders, etc.

Cultivate a core group of key supporters who will provide a foundation for funding your organization.

Keep accurate records of all donations – your organization will be required to report on its finances annually to maintain its nonprofit status.

7. Build your volunteer team: Volunteers will provide many skills and services that are essential to the success of your non-profit. Define their roles and responsibilities, give them the tools they need to do their jobs, and acknowledge and thank them whenever possible. Volunteers are also three times more likely than non-volunteers to contribute money to your organization!

Bob Potter is a mentor with SCORE. About SCORE: SCORE is a nonprofit association that offers free and confidential advice on starting your own business or improving and growing your existing small business. All 45 counselors in Southeast Connecticut are volunteers, receive no compensation, and are working or retired business owners, executives, and managers. SCORE’s nine counseling sites in Southeast Connecticut include Guilford, Madison, Old Saybrook, Essex, Waterford, Middletown, Mystic, Norwich, and New London. If you would like to meet with a SCORE counselor for help in starting or running your small business, or for more information on upcoming free workshops and how to schedule a free small business mentoring session with our counselors, visit www.sect.score.org