How to Make a Foundation for Charity

How to make a foundation for charity begins with you knowing what you would like to accomplish. Do you want to feed hungry children and families, would you like to create affordable living for the homeless, are you interested in youth services, or is there another cause that you feel passionate about?

Whatever that cause may be, it is important to have a goal in mind before you begin. Learning how to make a foundation for charity is not that difficult of a task to accomplish as I explain further in the information below.

Drafting a business plan is a very good first step in how to make a foundation for charity. Start your business plan by writing a Mission Statement. Explain exactly what the purpose of your foundation will be. Detail what your foundation’s goals are and how they will be accomplished.

Decide who will run your foundation by choosing your board of directors. Most foundations have 3 to 5 members on their board, who make all decisions regarding the foundation.

Deciding on a name for your foundation should involve all board of directors’ members. Your foundation’s name is very important. The name should clearly let people know what your foundation is all about.

Setting up your foundation as a 501(c)(3) nonprofit organization requires that you contact the IRS and apply for tax-exempt status. You can call and have forms sent to you, go on-line, or go into your local office to fill out forms, in order to do this. Now you can open a bank account for your foundation.

Although raising funds for your foundation may be time consuming, your efforts will pay off. Visit your local library or go on-line to find out what government agencies might be a good match for your particular foundation’s needs.

Most government agencies ask that you submit a grant proposal. You can get help writing proposals on-line or at your local library.

Organizing fundraising efforts in your local area is a good way to, not only raise money, but also raise awareness for your foundation. Planning, how, where, when and what your fundraising event should consist of, should be done by your board of directors.

The type of organization that you establish will determine such things as; the theme of, the venue for, the time, and place of your event.

For instance, if you choose a foundation that provides recreation activities for children with special needs, you might decide on a circus theme, and hold your event on a summer day in a handicap accessible park.

Many foundations today, have websites where people can go to learn more about the foundation as well as make a monetary donation of support. Once you have decided on the name for your foundation, be sure to purchase the name as your website address as well.

You can set up an account with an online payment company such as PayPal, which will allow you to accept donations for your foundation from visitors to your website.

The most challenging part of the process will be waiting for your approval from the IRS. The process of setting up your foundation for charity is rather simple but the approval process can take six months or more.