How to Start a Nonprofit Organization with No Money

How to Start a Nonprofit Organization With No Money

If you want to learn how to start a nonprofit organization with no money, we’ll walk through the best ways below. Whether you want to make an impact in the lives of local youth or you’re looking to help stray cats in your neighborhood, there are tons of ways you can do good in your own backyard. Making a difference doesn’t have to be expensive, but it does take time and care. Today, we’ll walk through the cheapest ways to start doing some good in your community.

Options for How to Start a Nonprofit Organization with No Money

First thing’s first: nothing is free. Whether it’s you, your family, neighbors, or other people, someone will be investing time, money and energy into your organization. But you can start a nonprofit for a more affordable cost depending on how you do it. We’ve rated the options from least expensive to most expensive below.

Don’t Start a New Nonprofit: build on an existing initiative
Fiscal Sponsorship: the “trial run” of starting a nonprofit
“EZ” Nonprofit Startup: start for under $1000

How to Start a Nonprofit with No Money Option 1: Build on an Existing Initiative

For anyone wondering how to start a nonprofit organization with no money, the answer is often: you can’t. But don’t worry: there are still meaningful ways to make an impact in your community. There are a few alternatives to starting a nonprofit. One of our favorites?

Partner up with an existing nonprofit. If you have an idea for a way to help those in your community, reach out to local nonprofits that serve the same population. If you’re not sure of nonprofits in your area, start by googling nonprofits that serve the population you’d like to serve and the geographic area. For example, you could search “Ohio nonprofits for veterans” or “homeless shelter in Brooklyn”.

For a lower commitment option, sign up to volunteer with them. But if you’re looking to get more involved, see if they would be willing to take your project on as a new program line. For example, it’s fairly common for churches to support new emerging ministries as projects of the church. This option is by far the least expensive. Often, you just need to invest your time and effort into building relationships within the nonprofit community.

How to Start a Nonprofit with No Money Option 2: Fiscal Sponsorship, The “Trial Run” of Starting a Nonprofit

If you want a little more independence than volunteering with an existing nonprofit, but you’re not ready for the financial and paperwork commitment of starting a nonprofit, consider fiscal sponsorship. Fiscal sponsorship is a legal relationship between an existing nonprofit and a new charitable program that allows the new charitable program to apply for grants and accept donations without having to file for their own 501c3 status.

So what does that mean? It means you can ask for donations and grants while running your charitable program with those funds, so you don’t have to invest a ton of your own money up front. For many nonprofits just starting out, this is a kind of “trial run” to see if their idea works before committing to fully starting a new nonprofit, which can be time-consuming and expensive.

Fiscal Sponsorship Allies offers model C fiscal sponsorship for new charitable programs with no setup or application fee. Ready for more information? Let us know!

How to Start a Nonprofit with No Money Option 3: “EZ” Nonprofit Startup: Start for Under $1000

The last option is the least expensive way to start an independent nonprofit organization. While this doesn’t answer the question of how to start a nonprofit organization with no money, it does give you a path to start as inexpensively as you can. So what does it cost to set up a nonprofit organization?

You’ll need to take into account the filing fees for all the documents you’ll need to file with your state and federal government entities. We call this option “EZ” because it’s the easiest and most affordable option when filing with the IRS to get your 501c3 status. There are three options of forms you can file when starting a nonprofit legally: Form 1023, Form 1024 and Form 1023-EZ. While the IRS charges $600 for anyone filing Form 1023 or Form 1024, they only charge $275 for anyone filing Form 1023-EZ. So the EZ form can save you $325 on your startup costs! But keep in mind, not all nonprofits are eligible to file Form 1023-EZ. The IRS has rules around who can file which form.

Between articles of incorporation, charitable solicitation registration, 501c3 status, and any annual filings with your state, starting a nonprofit can cost between $500-$1000 if you filed the 1023-EZ, depending on which state you’re in. Keep in mind, there is an ongoing cost to running a nonprofit, including making sure all your state and federal filings are taken care of properly.

Tips for How to Start a Nonprofit Organization with No Money

Plan Realistically

No matter how much you Google “how to start a nonprofit organization with no money,” no one will have a perfect answer to your inquiry. The best thing you can do is plan realistically. Sit down and think about what you’ll need to run your program and raise funds for it.

For example, let’s say you want to train service dogs for the blind and visually impaired. Let’s think through some of the costs involved. Consider if you’ll have a volunteer dog trainer or if the dog trainer will need to be paid. Will anyone donate puppies to train or will you have to purchase them? Once you have the puppies, they’ll need food, water, and a place to stay. They’ll also need service dog vests and anything needed for training like treats. You can always ask businesses to donate things like dog food though, which you can read more about below.

Accept In-Kind Donations

If you’ve ever donated clothes or canned goods to a nonprofit, you’ve given an in-kind donation. An in-kind donation is a non-monetary donation, which can include tons of things from someone paying a bill on the nonprofit’s behalf to donating their car. When you want to learn how to start a nonprofit with no money, in-kind donations can be great. You can often get companies to donate things like food for volunteers, supplies for your program, and more! However, most companies only want to give to established 501c3 organizations because it allows them to take a tax deduction for their gift. But some individuals will still donate goods for a good cause. Just be sure to let donors know they can’t take a tax deduction if you don’t have your own 501c3 status.

Start Small and Partner Often

It’s great to have big goals. But sometimes the best, cheapest place to start is with something small. Let’s say you want to provide Thanksgiving dinner to all the families living below the poverty line in your city. That’s going to take a ton of resources! Start with a smaller goal for your first year. For this example, let’s say your goal is to provide 25 Thanksgiving meals to families in need.

Next, find who you can partner with. You could have a local grocery store chain donate turkeys. You could find local farmers to donate fresh vegetables. See if people in your neighborhood are willing to do a drive to collect dry and canned foods. By partnering with existing organizations and people in your area, you can save a ton of money and still make a huge difference.