A Legacy of Giving: Turning Loss into Positive Community Impact
November kicks-off the holiday season. There are many holidays between November and December that center around giving to others, being grateful and gathering with family. For many of us the holiday season will look different than the years prior. Some of us will gather for traditions, celebrations, and holidays much differently because we have lost a loved one. The impact of this person’s death, their absence, ripples for years (I know personally).
When I lose a loved one, I handle the loss by honoring their memory through listening to music they loved, doing activities they enjoyed, and looking at photographs of them through the years. Another way to honor the memory of someone that impacted your life is through starting a nonprofit organization in memorance of them. A nonprofit organization honoring their memory, allows you to share their stories and connects you to causes that were dear to them.
So how do you get started?
Teamwork Makes the Dreamwork. You will need to build a founding team (board) for your nonprofit organization. In most states you need at least 3 board members to file your organization with the state you will operate. Your initial team may consist of other family members or close friends that believe in the mission. However, as you begin to develop the organization you want to be strategic about your board members. Board members are responsible for the operational and financial aspects of a nonprofit organization. You want people that have the knowledge, experience, connections and time to help you operate and fundraise. The Nonprofit Coaching Club has an abundance of resources for individuals starting, operating and funding new and existing 501c3 organizations.
Mission Driven. Nonprofit organizations are mission-driven. All the organization’s activities, programs and even fundraising efforts align with the organization’s mission statement. The mission statement communicates the nonprofit's purpose, what groups it serves, and how it plans to do so. For a new nonprofit, developing the mission statement is a critical first step in defining what the organization plans to do and what makes it different from other organizations in the same field. The mission is the focus of the organization. Here are some examples to focus the organization for your loved one:
The causes they cared about (i.e. children, animals, education, gardening, etc.)
Scholarships (for college or entrepreneurs)
Housing
Food to families in need
Mental health and counseling
The Paperwork. A nonprofit organization is a business. Yes, I know you are in shock, this is the first thing I used to explain to my students when I taught undergraduate nonprofit courses. Not only is a nonprofit organization a business; but they can earn a profit (blasphemy). I love sending my students to Charity Navigator and GuideStar websites to allow them see how much revenue nonprofit organizations generate. The difference between a nonprofit organization and a for-profit business is a tax code designation allowing organizations to become tax-exempt. The designation code is 501 and according to the IRS there are 29 tax-exempt types of 501. You can learn more about the codes in the IRS 557 Publication. This article will focus on organizations with 501c3 status. An organization obtaining the 501c3 status has certain criteria it must meet. Some of the criteria:
has a mission statement
no owners (yes it is incorporated but there are no owners)
if it dissolves all assets must be donated to another organization or given to people as outlined in the bylaws to name a few, but there are many more.
A 501c3 organization is not required to pay taxes on most revenue generated. An organization with a 501c3 status does not pay taxes and they can accept donations that donors can deduct from their personal/business tax liability. I always encourage donors to speak with a tax professional to know of their personal/business tax liability in relation to donations.
Do the Work! Having the 501c3 status will allow your organization to do the work easier by being eligible for grants, donations and even meeting the criteria to collaborate with certain organizations and government agencies. However, you do not need the status or an official organization to do the work. Everyday you can honor their legacy with your actions. Some people feed the homeless every year or clean up the community to honor their loved one. Start doing the work. Then join the Nonprofit Coaching Club to get the guidance you need to start an amazing nonprofit organization to honor the legacy of your loved one.
