We are asked many times, does it cost money to start a nonprofit? Even when we don’t receive that question, when we are meeting with a young nonprofit, we still come across this topic. We find that this question is asked so often because there is a gap in correlating the management of a nonprofit organization with running a business.
Here, we will answer this ever important question, ‘Do I need money to start a nonprofit?’
YES, starting ‘any’ business requires money. Let’s face it, there are key fundamental areas in your business that will require funding. Beginning at a minimum of a few dollars to acquire a domain name for your business to basic business supplies, money will be required. However, you should recognize that it is extremely important where you direct those funds. I see many nonprofits fall into one of two holes, they have a significant amount of funding and begin pouring it into the startup process and when the nonprofit is ready to launch, there is no money. Or, the nonprofit begins on the assumption that ‘it can be done without money’ and the process is halted when money is required to move to the next phase, and there is none.