The Ultimate Nonprofit Checklist for Starting and Running a Successful Organization

A nonprofit checklist is a smart way to make sure you have everything you need in order to start and run your charity for years to come. Using your checklist as you go through the steps can help make sure you’re not overlooking any important details and staying legally compliant. A checklist like this can be so very helpful when you’re starting a nonprofit as there are a lot of things to cover, and unless you’ve been through the process before, you’re most likely not going to know all the steps.

This is why we’ve decided to create the most comprehensive list possible so no matter how familiar, or not you are with the process, you’ll be sure you’ve covered all the bases and are going through everything in a logical and strategic way. Our list outlines every critical step, from drafting a mission statement, filing for 501(c)(3) status to setting operational goals. And if your nonprofit is already up and running, you can modify our checklist so it becomes your maintenance manual and helps you fine-tune your daily operations and keep your mission on track and in line with all compliance requirements.

The Ultimate Nonprofit Checklist Overview

Unlike generic checklists, ours dives much deeper so it can be helpful to anyone looking to start a nonprofit organization, even minors! This overview is just a template and we will go over each section more in depth below. But this is the perfect quick list to check as you go through each section. We’ve even included a downloadable PDF for you to print out and make it even easier.

This overview not only covers the basics but also emphasizes sustainability and adaptability. By addressing both short-term needs and long-term goals, you’ll build an organization capable of thriving in the ever changing nonprofit sector.

Strategic Foundation

Write a Mission Statement

• Define your purpose as clearly and concise as possible.
• Make sure it conveys your values and speaks to your audience.
• Ask yourself: Can someone understand our mission in under 10 seconds?

Conduct a Community Needs Assessment

• Research your target demographic and the gaps you aim to fill.
• Interview stakeholders, collect surveys, and review public data.
• Decide if there are already nonprofits filling these needs.

Set SMART Goals

• Create Specific, Measurable, Achievable, Relevant, and Time-bound objectives.
• Tie these goals directly to your mission and prioritize them by importance.

Legal and Compliance Essentials

Form Your Board of Directors

• Recruit individuals with diverse skills (e.g., legal, fundraising, marketing).
• Formalize roles and expectations with clear job descriptions.

Choose a Memorable Name

• Make sure your name is unique and aligns with your mission while resonating with your audience.
• Verify availability (domain names, social media handles, and trademarks).

Draft Bylaws and Articles of Incorporation

• Use templates but customize them for your organization's specific needs.
• Bylaws should cover governance, voting, and operational procedures.

Incorporate Your Nonprofit at the State Level

• Look for your State’s Attorney General's Office guidelines – each state is different.
• Many states require you hold an official board of directors meeting before submitting.
• Register for fundraising permits if required.

Obtain EIN and File for Tax-Exempt Status

• Apply for an EIN (Employer Identification Number) through the IRS.
• Complete Form 1023 or 1023-EZ for tax-exempt status.

Operational Infrastructure

Develop a Realistic Budget

• Break down expenses (startup costs, programs, admin) and revenue streams.
• Include a contingency fund for unexpected challenges.

Open a Dedicated Bank Account

• Use a bank that supports nonprofits with tailored accounts with lower fees.
• Keep personal and nonprofit funds separate for accountability and compliance.

Secure Insurance Coverage

• Assess your liability risks including property, directors and officers (D&O) insurance.
• Consult a specialist for tailored policies and better pricing.

Set Up an Accounting System

• Choose software like QuickBooks for nonprofit accounting.
• Assign a treasurer or hire a nonprofit savvy accountant.

Hold an Initial Board Meeting

• Develop an agenda and distribute it before your first board meeting.
• Approve bylaws, elect officers, and assign responsibilities.

Decide on a Software Platform

• Dedicated software programs like Paybee make it easy to start and run your nonprofit.
• Be sure your software gives you the ability to grow in the future.

Fundraising and Marketing

Craft a Fundraising Plan

• Diversify your fundraising methods: grants, crowdfunding, donor events, and corporate sponsorships.
• Set achievable fundraising targets for each specific program.

Establish a Brand Identity

• Develop a professional logo, consistent color scheme, and messaging tone.
• Use Canva or hire a designer to keep your branding looking professional.

Build a Website

• Include your mission, programs, donation options, and contact info.
• Optimize for SEO and make sure it’s mobile optimized.

Claim Social Media Handles

Focus on platforms targetted to your audience’s uses (e.g., Facebook, Instagram, LinkedIn).

Post regularly with a mix of storytelling, calls to action, and updates on your progress.

Growth and Sustainability

Develop Policies and Procedures

• Include conflict of interest, whistleblower, and record retention policies.
• Document daily operational guidelines for consistency.

Focus on Volunteer Recruitment and Retention

• Create detailed volunteer roles with clear expectations.
• Show appreciation with recognition events or thank-you gifts.

Stay Educated

Subscribe to nonprofit publications, attend webinars, and join relevant associations.

Keep your board and staff up-to-date on best practices.

Monitor and Evaluate Programs

• Track KPIs (Key Performance Indicators) for each program.
• Use feedback to refine your operations and demonstrate your impact to donors.

Your Nonprofit Pre-Launch Preparation

This is when you decide on exactly what it is your non-profit will do to make the world better and how it plans on achieving those plans. This is usually done through either a mission statement or a vision statement. Your statement should be very clear on what your cause is and how you’ll address the problems. Once that’s established you need to be sure there aren’t organizations already filling these needs in your area. One of the easiest ways to do this is a simple search using keywords from your mission statement along with your vicinity name to see what already exists. If there are gaps to cover then decide on how you will positively impact them using SMART goals, Specific, Measurable, Achievable, Relevant, and Time-bound objectives. Using SMART to outline your objectives gives you a sound clear way to establish your goals and how you will fulfil them both short and long term.

Legal and Compliance Checklist

This will be the most time and resource intensive part of the process. This is when you will deal with both local and federal government agencies, and you’ll need to be sure all your documents are spot on to avoid delays or refusals. The first thing is to elect your board of directors. These people will be the ones who guide your nonprofit for many years to come, and make sure it stays aligned with your mission statement at all times. It’s best to choose people with helpful skills like an attorney or accountant that can help out pro bonno or reduced fees, or someone with ties to the local community like a business person or public figure. Ties like these can save your organization a lot of money and help establish its legitimacy and help it grow.

Once you have a board, you need to decide on a name. Choose something that conveys what your venture is all about while still being catchy and short. The Brooklyn Animal Adoption Agency and Free Clinic just doesn’t have the same ring as something like Brooklyn Pet Adoption. You should ask a few people for some suggestions and their thoughts on your choices so far. You can even hold a vote if people are passionate about the choice. Make sure there is a .org domain available and there are no trademarks for your choice of name. You can check the U.S. Patent and Trademark Office (USPTO) database to be sure.

Now that you have a mission and name, the next step is to make it all binding in print. This requires you to create Bylaws and Articles of Incorporation. These documents are not just for internal use, they’re required by either your State’s Attorney General's Office or the IRS in order for you to secure your tax exempt status. It’s best to use a template for this part as it can save a lot of time and make sure you’re not forgetting any required information.

Once they’re done with your Bylaws and Articles of Incorporation, check your State’s Attorney General's Office for their procedures on incorporating in your state. Starting a nonprofit organization in NY isn’t the same as starting a nonprofit in Delaware. So you’ll need to check this step on your own. Most states also require you to hold one official board meeting where the members ratify your articles and bylaws and accept your organization's name. This must all be recorded in the minutes and should be submitted with your forms.

Once you’ve become legal on the sate level, you can apply to the IRS for your EIN (Employer Identification Number). This is like a social security number for your organization and it needs to be included in all your paperwork thereafter. Luckily this step is easy and free and can be done in a few minutes here online. Once you have your EIN, you can finally begin Form 1023 or 1023-EZ in order to get your tax exempt status with the IRS. This is definitely the most time consuming part of the entire process and we have a great guide on the steps needed here.

Operational Infrastructure for Funding and Costs

This is where you get to the nitty-gritty of your daily operations and any special procedures you want covered for each. You’re also going to need to establish a realistic budget to get you started which should cover everything from your start up costs like document filings and possible rent, to any fundraising events you plan to hold once your legally tax exempt and the cost of programs and initiatives.

Using a specialized nonprofit software platform like Paybee makes a lot of this step easier. Things like your nonprofit accounting software, important documents and communications between your nonprofit's members can all be managed through one easy to use dashboard saving you a ton of time and holding people accountable. You can keep track of your banking records, donations coming in and pretty much anything you do on a daily basis with our platform. Just check out our demo here to see how we can help you get started much faster, and help you grow for years to come.

You’re going to need to open a bank account, but be sure to use the exact name on your Articles of Incorporation for your banking to keep everything legal. And never co-mingle any other funds whether personal of for another business you may have. You should also decide what sorts of liability you may have and decide on what type of insurance you’d need to cover any unforeseeable problems that may arise. This could be something as simple as someone coming to your office and slipping and breaking a bone. Accidents happen, so be prepared. Many insurance companies will work with you and offer your nonprofit a better rate overall, you just need to ask.

Fundraising and Marketing

Crafting a fundraising plan using a checklist can help make sure you have looked at all the possibilities there are available to you. Grants, crowdfunding, donor events, and corporate sponsorships are all great ways to raise capital for you charity. Which works best for your audience is a matter of understanding and careful planning.

You need to also incorporate realistic fundraising goals, especially if you’re new and don’t have a lot of past data to work with. It may help to ask other nonprofits in your area that are somewhat aligned with your own for some guidance here. And it’s always better to start your fundraising targets a little lower in the beginning just to be sure you have enough funds for your daily operations.

You should use some of your funds to help establish your brand. Like any company, your brand is majorly important, so don’t take this step for granted. You want your logo, colors, website and any communications to all be as cohesive and professional as possible. Never confuse supporters and potential donors by changing up the foundations of your branding. This can make donors feel confused and not sure who they’re supposed to be making a check to!

This goes for all of your communication channels, whether it’s your website, social media channels or even your email marketing. Be consistent, your supporters should recognize your brand just by the way you communicate. This helps build loyalty and trust with your charity, and shows that you have a clear understanding of your mission and a way to achieve it.

Evaluation and Growth Checklist

This is an important step to start implementing right from the beginning. The reason is you want your staff, volunteers and supporters to clearly understand procedures and what needs to happen. The earlier you can set the standards, the easier it’ll be to track your data and make adjustments so you can continually grow and thrive.

This all starts with simple things like daily operational guidelines for consistency. Who is responsible to go to the bank, talk with potential major donors, accept donations. What are the steps for each so there is accountability and trust. All of these details need to be ironed out so as you grow, no one is clueless on what their responsibilities are or at least where they should turn for help.

Of course when you’re just starting out, many of these responsibilities may only fall to a very few people. But it’s important to be aware of them and begin recording them so when you do get bigger, you’ll already have a standard procedure for each task.

Speaking of growing, it’s not only funds that help a nonprofit to grow and prosper. Supporters, volunteers and even your community all play a part. So you should always be recruiting volunteers and have programs in place to grow your support base. Be sure to show how much you appreciate your support and how grateful you are that they’re part of your team. But also have detailed volunteer and support roles with clear expectations for both parties. The easier you can make it for your people to do their part, the better they'll perform.

How well everything goes or doesn’t should always be evaluated. Track KPIs (Key Performance Indicators) for each process and program you initiate. KPIs can really help you understand the true performance of your charity, it’s effectiveness, retention of supporters and donors and how well your trusted. Numbers don’t lie and KPIs will show you where your doing great and where you’re falling short so you can tweak your procedures in order to get better results. This is one of the best ways to grow your nonprofit and even uncover missed opportunities to help or grow.

Checklist for Annual Reporting and Compliance

Maintaining your nonprofit's tax exempt status requires completing specific annual tasks that must get done. These tasks not only make sure you stay complaint, but they also help maintain transparency and reinforce trust with donors and stakeholders.

Your nonprofit must file Form 990 with the IRS each year, and failure to do so for three consecutive years ends with loosing your nonprofit status. This form provides a clear record of your organization’s financial activities and its compliance with all tax laws. There are actually three choices when filing, Form 990-N, 990-EZ, or 990 and which you decide to use is based on your nonprofit’s size and revenue. Just be sure, no matter how small, you conduct some sort of accounting audit. Even small charities can suffer from fraud or theft. A yearly financial audit can alert you to problems or signify a change in your financials you wouldn’t otherwise know about.

If your charity is growing, or you’re making changes in the direction you want it to move towards, it may be time to review and revise your nonprofit’s bylaws and related documents. These updates can help make sure your mission is still aligned with your current operations and any legal standards you’re required to maintain. This also helps to maintain stability and transparency with anyone involved with your charity.

Another annual event you should be doing is hosting an annual board meeting. Convene a board meeting to evaluate your year’s progress and failures, discuss foreword looking goals, and approve any unresolved decisions that need to be addressed. Document the meeting’s minutes as a yearly board meeting is often a requirement by state governments in order to keep your nonprofit status. And be sure that no state requirements have changed just to be safe. Do you need to renewing your charitable registration, or has a law changed. If so, this can all be brought up at the board meeting as well.

Wrapping Up

Starting and running a successful nonprofit organization requires dedication, organization, and a clear roadmap. By following this ultimate checklist, you can confidently navigate the complexities of forming your nonprofit, staying compliant, and building a strong foundation for growth. From crafting a compelling mission statement to implementing operational strategies and developing sustainable fundraising plans, each step is crucial to ensuring your nonprofit thrives in the long term.

Remember, this checklist is not just a starting point, it’s a living document that you can revisit and adapt as your nonprofit evolves. By staying committed to your mission and embracing a strategic, methodical approach, your organization can create lasting change and make a meaningful impact in your community and beyond.

With the right tools, planning, and dedication, your vision for a better world can become a reality. Let this checklist guide you every step of the way as you embark on this rewarding journey of service and impact.

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