You must start with a good understanding of how much it will cost to operate your non-profit so you know how much money you need to raise. You will need to have a good sense not only of the fixed costs to start your non-profit, including state and federal fees and the time it will take to complete that paperwork, but also any necessary costs for infrastructure and development.
For example, you may need to rent office space for your non-profit, or you may be able to run it out of your living room – at least at first. If you need to rent a physical space, though, the initial costs of finding and securing a location should be included in your budget. Your organization also will need supplies.
For example, if you plan on opening a soup kitchen, you will need plates, bowls, and cups and utensils, as well as space to cook and clean. Even if your non-profit will exist mostly in virtual space on the internet, you still will have material costs associated with the business such as fees for domain registration and hosting of your website. Having a solid understanding of the daily operating expenses for your non-profit will help you determine how much money you need to raise on a regular basis. Consider the economic climate in your area, as well as projections for the future, as this will have an impact on the amount of money you’re able to raise and the continued financial viability of your non-profit.
