You have an idea that can help people and are dreaming big. Before considering a plan to raise money to start your nonprofit, you need to think realistically. Look around your service area. Avoid doing work someone else is already being funded to do. If you think other people will support you in your endeavor, create a case statement. The case statement tells people what your mission is and why they should support you.

1 Search out people who are well-connected in the community, such as business and community leaders, who will be as passionate as you are about your cause. Joe Garecht of the Fundraising Authority recommends talking to these people -- presenting your case statement -- and asking if they will become board members. Then, ask the board to assist you in raising the funds you need for your launch through community fundraising events and by asking others for individual donations.

2 Contact people such as family members, friends, office colleagues and other potential supporters who might offer assistance. Startup funding for new ventures mostly comes from individual donations, from the nonprofit's founders, board members, volunteers, community members and other interested individuals, according to the Grant Space website. Foundations, particularly large, national foundations, avoid funding startups, preferring instead to fund established nonprofits with proven track records and IRS 501(c)(3) tax-exempt status. To find more supporters Jan Leeman, of Stanford Social Innovation Review's "Ask an Expert," recommends networking and asking people you know for introductions to people who might support you. Present your case statement and ask these people for money and for help with launching a major community fundraiser to draw other supporters.

3 Contact organizations that might have a potential vested interested in seeing your group launched. Garecht, from the Fundraising Authority, points out that if you are raising funds for a new soup kitchen, for example, local churches, homeless advocacy groups and anti-poverty groups might be willing to help. If not with money, these groups might provide volunteers for a fundraiser or provide other support, such as free office space or equipment.

4 Find a fiscal sponsorship if you want to seek grants from foundations. A fiscal sponsorship is a formal arrangement that allows a group without IRS 501(c)(3) tax-exempt status to apply for grants and solicit tax-deductible charitable contributions under the sponsor’s exempt status. Look for nonprofits for fiscal sponsorship whose charitable missions are similar to yours. The tax-exempt sponsor ensures that the sponsored group uses its funding for stated tax-exempt, charitable purposes. Most fiscal sponsorships are created by written contract that makes clear each party's responsibilities, what occurs with assets when the sponsorship concludes and any fees the sponsor charges for the service. Fiscal sponsorships range from a relationship where the sponsor receives the funds and ensures they are spent correctly to more comprehensive arrangements, where the sponsor provides back-office services, such as human resources, and even makes the sponsored group its own project.

5 Research local foundations to identify funders willing to provide grants to a new group. Local foundations are more likely to fund a new group than are large, national foundations. A few national foundations provide funds for startups. For example, the Draper Richards Kaplan Foundation annually chooses six social entrepreneurs starting new nonprofits for yearly funding of $100,000 for three years. A search with organizations like the Foundation Center can identify others.

Warnings The Foundation Center's Grant Space website points out that organizations soliciting charitable donations are usually required to register with a state agency, such as the secretary of state or the attorney general’s office, before asking for contributions or they could suffer fines. Check the state office for more information.

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