This document outlines the typical lifecycle stages of a nonprofit organization from conception to maturity. It begins with forming a board and incorporating as a nonprofit before applying for tax exempt status with the IRS. In the first year, nonprofits focus on determining services, finances and systems while establishing a presence in their community through friendraisers and small grants. As nonprofits grow into toddler and teenage years, they expand programming and fundraising but must be wary of conflicts of interest and founders syndrome. The final stages involve strategic planning retreats to assess expansion opportunities and ensure long term sustainability through financial reviews and revised strategic plans.

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NONPROFIT LEADERSHIP SERIES
Lifecycle of a typical non-profit

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I AM NOT AN ATTORNEY
OR AN ACCOUNTANT OR
AN EXPERT IN EVERY
STATE

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CONCEPTION

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1. Form your board
2. Business plan
- Case for Support
3. By laws
4. Articles of incorporation
5. State application
6. Federal tax id application
- Employee id number (EIN)
7. Application to IRS
STEPS

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THE IRS
Just a designation
• Mission
• Service to provide
• Community need
• Founding board
• Funding plan

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I AM NOT AN ATTORNEY
OR AN ACCOUNTANT OR
AN EXPERT IN EVERY
STATE

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FIRST BIRTHDAY

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TO DO LIST
• Determine service delivery
• Determine finances
• Set up “systems”
• Establish community presence

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President
Secretary
Programs
Treasurer
Fundraising
THE FAMILY

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Income
Events
Private Donations
Public Funding
COMMON FUNDING

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THE FIRST YEAR FUNDING
Community “friend” raisers.
Board receptions
Meet and Greets
Community grants
Banks
Retailers
Board gifts and gets!

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TODDLER
YEARS

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CONFLICTS OF INTEREST / SELF-SERVING LANDMINES
• Property
• Family on the “payroll”
• Financially “appropriate”
• Public benefit test
• Private Foundation
• Board members paid
• Any highly compensated employees
Common trouble spots

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Board
President
Secretary
(Attorney)
Treasurer
(CPA)
Board
Development
Fund
Development
Marketing
Part time
staff/admin
THE GROWING BOARD
Other board members – maximum set by by-laws

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READY TO GO TO SCHOOL!!

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• Founders syndrome!
• Replace founding board members
- Allow them to “sit-out”
• Revise Case for Support
• Revise by-laws
• Update “systems”
• Revamp fundraising plans
THE HARD PART

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THE PLAN FOR GROWTH
Signature event
Be true to your mission and resources
Apply for federal and state grants
Make sure your financials are in order
Board gifts and gets!
Establish a donor program.

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THE DREADED
TEENAGE YEARS

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THINGS TO BE WARY OF…..
• Curfews!
• Pushing boundaries
• Raising the allowance
• Challenging the rules

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I AM NOT AN ATTORNEY
OR AN ACCOUNTANT OR
AN EXPERT IN EVERY
STATE

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WRAP UP
What is the age of your board?

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BOARD RETREAT AND PLANNING
• Community interviews
• Financial reviews
• Expansion plans….
• And so much more…

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PREVIEW TO NEXT SESSION
Planning your board retreat….
April 9th
12:00 EST