How to set up a nonprofit organization after the loss of a loved one

Losing a loved one can be incredibly difficult, especially when it feels like nothing can be done to rectify such loss. However, one way to memorialize the death of a loved one is to create a nonprofit organization dedicated to that person. These organizations can be created for multiple reasons, including raising money for the loved one’s family, moving legal issues forward, or promoting community awareness. However, the founding of an organization is no easy task; to do so requires knowledge, resources, and time. Below, we’ve laid out the steps you need to take to set up a nonprofit organization after the death of a loved one.

Step One: Do the Research

The first step towards building a nonprofit organization for a loved one is to research. What purpose are you trying to fulfill within your community through your lost loved one, and how does it differ from other organizations with similar goals? Although it can seem trivial to think of how marketable your nonprofit is for a person who’s passed away, it is essential to think about such things in order for your nonprofit to be a success.

What is your plan to finance start up costs and operational costs in the future? Start up costs could include state filings to incorporate your nonprofit and get it 501(c)(3) status, and operational costs could include office spaces, workers, marketing, and more.

It is important to think about the feasibility of the nonprofit in terms of outreach, finance, and time. Maybe at this point you realize that setting up a GoFundMe might be easier to operate, but if an organization is what you want to dedicate, do the research and find out how you can differentiate it from what’s currently available.

Step Two: Set Up a Business Plan

Once the research is mostly complete, the second step is to think about and finalize your organization’s plans.

Every business has a business plan, and every nonprofit has a business plan as well. The plan should include a mission statement that clearly identifies the organization’s goals (what are you trying to achieve in support of your loved one), a summary of the nonprofit’s services and impacts (for example, changing a current criminal law), a summary of ways to finance those services, a marketing ideas list, a summary of day-to-day operations, and a financial plan that services all other operational costs. Each component of the business plan must be thoroughly prepared, as your audience will likely be potential donors or partners. 

Step Three: Reach Out to Potential Leaders and Members

Now is also the time to start thinking about and finalizing your nonprofit’s leadership and board members, whose qualifications depend on each state, and which is a legally required part of owning a non-profit.

Board members oversee leadership direction, accountability, and financial operations, but whether you wish your board members to act as a working (doing actual work with heavier accountability) or governing board (overseeing operations or finances) is up to you depending on what your nonprofit needs.

Think about people who are dedicated to the mission of the nonprofit, have diverse perspectives, and can commit to the time and effort a nonprofit takes. This may seem easy when the mission is in support of a loved one, but having too many individuals of one perspective or, participants who lack dedication, are all potential obstacles.

Step Four: Get Registered 

With your plan and board members figured out, the next step would be to register your organization as a corporation of your state. This step is essential to give credibility to your nonprofit and to then apply for the 501(c)(3) tax exempt status.

Each state requires different standards for registration, but the main paper to complete is the Articles of Incorporation (usually found on state sites). This document will contain the legal name of your nonprofit, names of founders, office address(es), mission statement, board members, and more depending on your state. Filing an Articles of Incorporation requires a varying fee, so be prepared for that in your finance plan as well.

After your nonprofit has been incorporated, you can then file for 501(c)(3) tax exempt status (user fee ~$275-$600), which allows exemption from state and federal taxes and allows tax deductions for your donors. 

These are the basics for establishing a nonprofit. Once it is established, there are fundraising tactics, events or campaigns, and other sources of revenue to look into to keep your organization pushing towards its goals.

To dedicate a nonprofit for a loved one can seem difficult to start, but these basic steps will help conceptualize the concrete steps needed. Most importantly, your nonprofit could foster the awareness of and compassion for certain conditions, inequalities, or other social issues that communities need. That makes it all worthwhile.

— Jenny Kim