Establishing Your Credibility

Steps that build donor confidence in your organization

Before you begin reaching out for donations, make sure your organization is set up properly to receive tax-deductible gifts.

This generally involves the following basic steps:

1. Naming Your Organization

You might think this is a no-brainer, but your name can have a major impact on your ability to raise funds. Learn What's in a Name? and how some organizations changed theirs to increase their fund-raising clout.

Whatever name you choose for your organization, be sure someone else hasn't already laid claim. You can check out any name you're considering and learn how to protect the name you select at the United States Trademark and Patent Office.

2. Writing or Reviewing Your Mission Statement

Your mission statement tells donors what problem you are addressing. A mission statement is generally required for incorporation.

Board Source provides detailed information on the importance of having a powerful mission statement and has tips on how to write one.

3. Incorporating as a Nonprofit Organization with Your State

The incorporation process differs from state to state. To find out where to get the information you need to incorporate in your state, go to the National Association of State Charity Offices.

4. Applying for Nonprofit Status with the Internal Revenue Service

Donors expect their gifts to be tax-deductable. To download the forms and instructions for applying for tax exempt status, go to the Internal Revenue Service website and click Application for Recognition of Exemption.

The Foundation Center offers detailed information about setting up a nonprofit organization.

Tip: While you can handle the incorporation and application for nonprofit status yourself, you may want to consult an attorney to help you through the processes. Doing it right the first time will let you start reaching out for those much-needed dollars without unnecessary and frustrating delays.

5. Establishing Your Visual Image

For better or worse, your organization is judged by the visual image you present to the world. It's worth the time to create a logo and select a color palette and typography to use on all your printed materials.

Replacing a hodgepodge of designs for newsletters, appeals and event invitations with materials that have a common design theme:

• Makes your messages stand out in the stack of mail
• Gives you a more professional image that will create confidence in donors

Tip: Developing a visual image is best done by design professionals. You may be able to find a graduate student or young graphic designer in the process of building a portfolio to do the work for free.

Image of Boomer courtesy Kate Buch