Is Starting a New Nonprofit Organization Your Best Alternative?

With over 4,000 nonprofits in the state of Maine and over 1.5 million in the nation, starting a new nonprofit may not be the best solution to the problem you are seeking to solve. Increased competition for dwindling resources creates a very challenging environment in which to sustain a nonprofit organization, and talking to similar organizations about possible collaboration is often the best move you can make.

Please follow the links below before making your decision.

• Before You Begin - Some Issues to Consider
• Five Alternatives to Starting a New Nonprofit Organization
• Should I Really Start a New Nonprofit?

Starting a Nonprofit is Your Best Alternative and You're Ready to Get Started

The following section and the included links will help you through the process of starting a nonprofit corporation in Maine.

1. Start with this check list to make sure you are following the proper steps in setting up your nonprofit organization.
   Starting a Nonprofit Organization - A Check List



2. Your first step will be to determine your organizational purpose and to form an initial board of directors. In Maine, your board must include a minimum of three unrelated individuals.
   

Ideas from the Free Management Library for:

• Recruiting Board Members
• Writing Your Mission Statement


3. Next, you want to decide whether or not to incorporate in Maine. The following link will help you through this process.
   www.maine.gov/sos/cec/corp/incorporating.html
   


4. At this point you will want to draft bylaws for your organization. Here are some sample bylaws for you to use during this step.
   Sample By Laws
   


5. Once your bylaws are complete, you will want to begin the strategic planning process, including developing a budget, a resource development plan, a record keeping system and establishing an accounting system. Below are just a few of the free & low cost resources to help you with this essential developmental step.
   • Executive Service Corps of New England
   • Accountants For the Public Interest
   • Nonprofit Financial Center's Online Guides
     
     
6. You are now ready to apply for tax-exempt status through the IRS. This is a lengthy process, but it doesn't have to be complicated if Steps 1-5 have been thoughtfully completed. The IRS's nonprofit information center
   


7. Consider obtaining a Fiscal Agent to enhance your fundraising ability while you wait for your tax exempt status from the IRS.
   About Fiscal Sponsorship
   


8. Some nonprofits, such as hospitals, schools, churches and libraries, are exempt from paying Maine Sales Tax. Find out if this exemption applies to your organization.
   


9. If you own property, you may be exempt from paying property taxes to the municipality in which it is located. Learn more about property tax-exemption in Maine and to download an application form.
   


10. Be sure you comply with rules, regulations and laws governing nonprofit organizations and fundraising.
    • Maine Charitable Solicitations Act
    • Charitable Solicitations License Information
    • Maine Nonprofit Corporation Statute
    
    
    

Additional Resources

• SCORE Maine - Volunteer business counselors that provide in-person startup and filing assistance to aspiring nonprofits.
  
  
• Other Help - This is a significant list of resources, articles & helpful forms put together by the Free Management Library.
  
  
• Starting a Business In Maine from the State Government
  
  
• Starting a Nonprofit Organization - A 38-page free E-book by BoardSource, Inc.

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