Non Profit Organizations are usually formed by a group of individuals who share the same passion for a particular purpose. They will be individuals who are highly committed to the cause as they will not have any financial remuneration and they would instead give off their time, money and other resources to fulfill their dream. The formation may be as a trust or association or as an organization. Organizations are incorporated in the country or state where they expect to carry out their business. The organization will then come under the legal purview of the country or state where it is incorporated in. When forming the organization, many aspects will be taken into account. Firstly analyze the objectives of the organization and what is required to meet these objectives. Finances will be a key, as non profit organizations are usually not permitted to have profit making ventures, which means they will always be at the mercy of donors. Therefore the formation of the organization must have donors who are willing to support your cause.
When forming the organization, apart from money, proper man power is equally important. Right people should be recruited for the right job, as unlike profit making organizations, non profit organizations are not able to take chances of projects being mishandled due to bad recruitment. It is also vital to be located strategically, depending on the nature of the non profit organization, such as if the work involves certain social groups, then there will be easy access to them. Credibility of a non profit organization is an important factor and therefore the board of directors and all staff members should be people of high integrity and honesty and without doubt, be highly committed.
Before the organization is formed, all the legal aspects should be completed. It may be prudent to have a lawyer attend to the main legal requirements. Make it a point to be conversant with what is legally expected of the organization at all times.
The structure of the organization will be based on the formation of the organization. If founded by an individual who has gathered a group of people to run the organization, they may then establish the organization in such a manner where the directors may be invited only by invitation. Under their supervision, they are likely to have Unit Heads to be in charge of different sections of the organization, who will report to the Board of Directors. There will be other staff reporting to the Heads of different sections. Each section will be responsible to effectively deliver their duties. Thus all sections will be able to work towards the expected goals. The structure of the organization must compliment the mission of the organization.