Structuring your faith based nonprofit organization


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Educational faith based series on starting a nonprofit

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  • Articles: State your purpose and officially informs the public of your corporate existence. Bylaws are the rules by which your organizations agree to operate under. Government applications are the forms you must fill out when asking for permission to be exempt from Taxes b. allow your donors to claim a deduction for their contribution Board of directors: Is the body of people who govern over your organization, make decisions and assist in raising money. On going compliance is the work you must do every year to make sure your organization obeys the law in regards to reporting your activities and the funds you raise.
  • Know your competitors and your allies because your are competing for 1) funding 2) people or clients Don’t be afraid to go to other nonprofits and ask about how they run things. Many are happy to share. Volunteer to get a sense of the work you must do for outreach.
  • In order to operate in one of these categories you must declare it in your purpose, vision, mission and your organizational documents.
  • Structuring your faith based nonprofit organization

    1. 1. <ul><li>Nonprofit Organizations </li></ul><ul><li>Presented by Jenai Morehead </li></ul><ul><li>Foundation Consultants </li></ul><ul><li> </li></ul>Foundation Consultants - Jenai Morehead
    2. 2. <ul><li>Nonprofit Organizations have a unique business structure that is driven by </li></ul>Foundation Consultants - Jenai Morehead Purpose (core values) Vision Mission
    3. 3. <ul><li>Articles of Incorporation-State Purpose </li></ul><ul><li>Bylaws-Governing rules </li></ul><ul><li>Board of directors- Governing body </li></ul><ul><li>Government applications </li></ul><ul><li>On going compliance </li></ul><ul><li>Biblically the corporate structure is found throughout the Bible but most predominantly in the book of Nehemiah, Book of Acts and Kings and Chronicles. Wherever you see kingdom leadership you will see forms of these documents and structure. </li></ul>Foundation Consultants - Jenai Morehead
    4. 4. <ul><li>Search your heart. </li></ul><ul><ul><li>You will be a servant to God, your community and to your purpose. The rewards are great but the work is challenging. </li></ul></ul><ul><li>Research your nonprofit industry </li></ul><ul><ul><li>know your competitors. You are competing for money and for clients. </li></ul></ul><ul><li>Make site visits to similar nonprofits to see how they run operations. </li></ul>Foundation Consultants - Jenai Morehead
    5. 5. <ul><li>Volunteer in the area of your passion </li></ul><ul><ul><li>My area of passion was housing because I had the experience of homelessness and did not want anyone to go through what I went through. </li></ul></ul><ul><ul><li>What is your passion and why? You will have to explain this when challenged. </li></ul></ul><ul><ul><ul><li>Let your speech be always with grace, seasoned with salt, that you may know how you ought to answer every man. Col 4:6 </li></ul></ul></ul>Foundation Consultants - Jenai Morehead
    6. 6. <ul><li>1. Charitable- relief of the poor, distressed or underprivileged. </li></ul><ul><ul><li>Psa 140:12-13 : I know that the LORD will maintain the cause of the afflicted, and the right of the poor. (13) Surely the righteous shall give thanks unto thy name: the upright shall dwell in thy presence. </li></ul></ul><ul><ul><li>Pro 31:9 Open thy mouth, judge righteously, and plead the cause of the poor and needy. </li></ul></ul>Foundation Consultants - Jenai Morehead
    7. 7. <ul><li>2. Educational Category- Schools, Colleges </li></ul><ul><ul><li>Pro 2:6 For the LORD giveth wisdom: out of his mouth cometh knowledge and understanding. </li></ul></ul><ul><li>3. Scientific Category-Yields knowledge and research </li></ul><ul><ul><li>Pro 9:9 Give instruction to a wise man, and he will be yet wiser: teach a just man, and he will increase in learning. </li></ul></ul><ul><li>4. Religious- institutions dedicated to faith. Such as churches or ministries. </li></ul><ul><ul><li>Acts: 2:47 the Lord adds souls daily to the church. </li></ul></ul>Foundation Consultants - Jenai Morehead
    8. 8. <ul><li>A non-profit organization does not distribute its surplus funds or revenue to owners or shareholders, but instead uses them to help pursue its charitable goals. </li></ul><ul><li>A nonprofit cannot “inure” or benefit a private or individual purpose. </li></ul>Foundation Consultants - Jenai Morehead
    9. 9. <ul><li>These are usually the first documents the public sees that declares your purpose for existence. </li></ul><ul><li>They state: </li></ul><ul><ul><li>Why you are created- </li></ul></ul><ul><ul><ul><li>Purpose, core values and mission. </li></ul></ul></ul><ul><ul><li>And they have in them the laws that govern your nonprofit corporation structure </li></ul></ul>Foundation Consultants - Jenai Morehead
    10. 10. <ul><li>Bylaws are the rules that govern your organization. </li></ul><ul><ul><li>Internal documents that your board agrees will manage: </li></ul></ul><ul><ul><li>Your purpose </li></ul></ul><ul><ul><li>Officers, committees general jobs </li></ul></ul><ul><ul><li>How you will govern finances </li></ul></ul><ul><ul><li>Dismissal of board members </li></ul></ul><ul><ul><li>Amendments to organizing documents </li></ul></ul>Foundation Consultants - Jenai Morehead
    11. 11. <ul><li>Key Responsibility of the Board Members </li></ul><ul><ul><li>govern the organization </li></ul></ul><ul><li>Act in good faith </li></ul><ul><li>Loyal and accountable </li></ul><ul><li>Oversees and carries out purpose goals and vision of the organization </li></ul>Foundation Consultants - Jenai Morehead
    12. 12. <ul><li>Why people serve on Nonprofit Boards </li></ul><ul><li>Civic duty </li></ul><ul><li>Charitable service </li></ul><ul><li>Obligation </li></ul><ul><li>Personal interest in the organization’s cause </li></ul>Foundation Consultants - Jenai Morehead
    13. 13. <ul><li>These are local, regional, state and national applications that must be filled out to ask governments permission to be recognized as a public charity. </li></ul><ul><li>These applications also give a third party a chance to review your activities on behalf of the public to determine if you are operating as a charity. </li></ul>Foundation Consultants - Jenai Morehead
    14. 14. <ul><li>Monitoring </li></ul><ul><li>Reports </li></ul><ul><li>Audits </li></ul><ul><li>On site visits </li></ul>Foundation Consultants - Jenai Morehead
    15. 15. <ul><li>What is your mission, your vision, and any key points of approach? </li></ul><ul><li>“ We see mission as what you do and vision as the end state you wish to achieve. </li></ul><ul><li>The best mission and vision statements are short and clear. We are especially interested in how your mission gives you concentration and focus-discouraging you from simply taking on more projects because money is available. </li></ul><ul><li>Finally, if you have [core] values, principles, strategies that guide where you go or how you work, please include them and be specific about how they shape your actions.” </li></ul><ul><li> Organization Mission (required) </li></ul><ul><li>Organization Vision (required) </li></ul><ul><li>Organization Key Points ([core] Values, Principles and Strategies) (required) </li></ul><ul><li>Source: Verizon </li></ul><ul><li> </li></ul>Foundation Consultants - Jenai Morehead
    16. 16. <ul><li>CRITERIA FOR FUNDING (PARTIAL LIST) </li></ul><ul><li>STRUCTURE </li></ul><ul><li>Serves the underserved </li></ul><ul><li>Organization Classification </li></ul><ul><li>U.S. organizations must provide evidence that the IRS has recognized them as tax exempt . </li></ul><ul><li>Organizations from outside the U.S. must (a) provide documents to determine whether the organization is the equivalent of a U.S. public charity, or (b) agree to sign and comply with an expenditure responsibility </li></ul><ul><li>Policy on Board Review and Approval </li></ul><ul><li>We require applicants to certify that the chairperson or at least one officer of the organization's Board of Directors has reviewed the grant proposal and that the organization's board is aware of the application and supports its submission </li></ul><ul><li>Charitable </li></ul><ul><li>Must be a registered Charitable organization with your government </li></ul><ul><li>You must have a board of directors. </li></ul><ul><li>Source: (social investments) </li></ul>Foundation Consultants - Jenai Morehead
    17. 17. Foundation Consultants - Jenai Morehead