Starting a non-profit- What are the in's & outs . . .

[NorCal]

I drafted a business plan a few years ago for a veteran centered non-profit organization but most business folks I spoke with seemed dumbfounded and had no idea how to start or operate a non-profit. I have done some research and I have a general idea related to how things are suppose to happen, except for the piece related to tracking financials. My understanding is that every dollar has to be tracked and the requirements are much stricter than they are for their for-profit counterparts.

Can anyone shed any light on this one?

[KristineS]

Your best bet would be to find a lawyer and an accountant who specialize in working with non-profits. It will cost you, but the benefits to being set up properly will most likely outweigh the costs. You may also, as you are looking at setting up a non-profit, find someone who is willing to donate their time.

[vangogh]

I can't shed any light, but I have the same understanding you have about accounting for every dollar and things being stricter. I think it's part of what you exchange for some of the benefits of being a non-profit. I'm sure there have been non-profits in the past that were good at making money disappear to prove their non-profit status and now the regulations are stricter because of it.

I'd also suggest talking to an attorney or accountant. You're probably going to want one on staff anyway so why not start talking to a few.

[NorCal]

I think both of you bring up really valid points, but like most people looking to start a non-profit I don't have a lot of cash to through at an attorney or an accountant. I'm trying to do most of the leg work myself until we develop the organization, so I'm just looking for any information I can to ensure future success.