Introduction
Establishing a non-profit is a noble endeavour with its unique set of considerations and procedures. In this article, you’ll find the steps to register as a non-profit organisation, from company name check to registration.
The article will also highlight key differences compared to for-profit entities and offer insights into special considerations to ensure success and compliance. Read on to discover more.
Steps to Register a Non-Profit Organisation
Non-profit companies are organisations registered with the government that put all their profits back into their businesses and the society. Also known as companies limited by guarantee, non-profits have guarantors and volunteers instead of shareholders and workers. Let’s look at the steps you need to follow to register your non-profit organisation.
- Choose a name for your non-profit organisation: You need to come up with the name for your organisation. Go through the company name check process to ensure yours is unique. The name of the charity needs to define who you are and what your case is. Utilise the charities register to ensure your name is unique.
- Outline your non-profit purposes: Establish your non-profit organisation with a specific purpose or number of goals in mind. The purpose can be charitable in nature or to benefit society so that your efforts reward the community. Creating an open plan for your entity is the main focus here.
- Pick your trustees: A non-profit entity needs to have a minimum of three trustees. They’re responsible for managing the organisation and deciding how it’s operated. Most trustees are also unpaid volunteers. However, they can claim reasonable expenses. You need to pick trustees who are genuinely interested in your project and have the right skills and enough experience.
- Choose your structure: Picking a structure for your non-profit entity affects various things, including who operates the organisation, how it’s operated and what it can do.
- Create a governing document: A rulebook or governing document is required when setting up a non-profit organisation. It defines how your non-profit organisation is operated. It covers several profits, including purpose, how to appoint trustees, who operates the organisation, rules about trustees’ expenses, and rules about trustees’ payments and how to close the organisation.
- Company registration: Once you have everything, including a governing document and trustees, you’re almost there! Once registered, start fundraising for your campaign.
Non-profit vs. For-Profit
Some differences exist between these two entities, which include:
- Non-profits are created to benefit society or the community; for-profits exist to offer a solution to a certain problem and earn profits.
- Non-profits can have separate legal entities, while their for-profit counterparts cannot have separate legal entities.
- Non-profits are operated by volunteers; for-profit entities have employees who are paid.
- Non-profits must have trustees; for-profit entities have paid managers who run them.
For-profit companies offer a service or product to earn a profit, while non-profit organisation’s main objective is to offer a benefit or service to the community. It has no intention of making money. Non-profits are focused on enhancing the community’s social aspect and not making money.
