How To: Start an NGO

by Apathy is Boring — March 31, 2010

• The first thing to do is research. We provide some of the websites that will help get you started.
• Start small. Everyone would love to have the same level of impact as Greenpeace or the Red Cross and Red Crescent, but for a beginning NGO this isn't very realistic. So consider carefully what the primary objective is going to be. In order to reduce the scope of the NGO, you can focus on a particular geographic region or demographic. This also helps to make sure that your objectives aren't being fulfilled by someone else.
• Most NGO focus on a type of intervention, some of which include: emergency relief aid, development education, programme delivery, and policy/advocacy. Which one of these interests you most?
• Consider networking with other, similar, NGOs in order to make the most of your mandate. Because of the sheer number of NGOs out there, it is likely that someone is doing something similar, and networking would allow you to help each other out and stretch your resources further.
• Make sure that the stated objective(s) is(are) in line with local needs and desires. To do this, maybe consider ways in which local people are given a way to provide constructive feedback into the objectives.
• Check, then double-check that your mandate is not breaking any regional or national laws. Look up different codes of conduct and legal resources at the Global Development Research Centre and ICNL websites.
• Take a look at the UN's Millennium Development Goals if you need inspiration. As part of the MDGs, the UN has a site for people to share ideas about helping out:
• There are several canadian agencies (governmental or non) that can help you consider your mandate: Canadian Council for International Cooperation,  The Canadian International Development Agency
• Don't forget about the taxman! Make sure that you're in compliance with all tax laws whether or not you're operating as a non-profit organization (although this is more complicated if you are). For information on Canadian tax law, look at the Canada Revenue Agency's website. There are sections of the website devoted to charities:

• Make sure that your mandate (mission statement) is clearly formulated. In other words, if you're asked to repeat it on the spot, you can do so without a problem. This means that it won't be confusing or misleading either.
• What is a mission statement? It outlines the nature of the organization at the present time, not an ideal that you wish to pursue. It identifies three things: the client(s), the critical processes (methods), and the level of performance. For more information, have a look at the following website: idealist.org
• It's a good idea to look through other organization's websites to get an idea of what a good mandate looks like, as well as some of the more confusing statements that you should stay away from.
• The bottom line of any mandate: it is not what you do that counts most, but the difference you make in peoples' lives.

• Going over the mandate with every member of the organization is important. It's the only you can be sure that they are on-board with the goals and objectives and are able to translate these to other people.
• And yes, this also applies to the Board of Directors and volunteers. Consider having a formal initiation session for any newcomers.

• All NGOs need a board of directors before they can be incorporated. The board members are responsible for the actions of the NGO.
• The Board needs to have at least three people on it for incorporation to work, but more is not impossible. So make sure you speak to a couple of people.
• Under the terms of the general by-laws of the corporation, the board of directors is given the responsibility to manage the affairs of the corporation. In order to do this, they meet together as often as necessary and may delegate certain responsibilities to specified officers so that routine matters can be taken care of in the interval between their meetings.
• The membership must meet at least once a year to receive the board's annual report; to review how the corporation has been managed over the last year and how it will be managed over the next year; to review the audited financial statements; and to appoint an auditor for the coming year.
• Certain actions of the board must be confirmed by the membership, e.g. amendment of the Letters Patent. In many corporations, the membership will have the power to re-elect directors on a regular basis and to remove existing directors, if necessary, in order that the management of the corporation reflect the wishes of the Membership.

• Individuals
• Corporations
• Different levels of government
• Federated funds, quickly defined, are larger organizations that vehicle charitable donations toward institutions that they support. For a better definition, see: http://nonprofit.about.com/od/f/g/federated.htm. The funds from these institutions are only available to well established NGOs.
• Grantmaking public charities whose mandates are to raise funds for charitable nonprofits that provide direct services.
• Private and community foundations
• There are two types of money that is given out to NGOs: ongoing and episodic. See: Fundraising Fundamentals

• Simply putting up a website is not enough.
   
• The first step is to define both your target market and what you will need from them.
   
• The second step is to find out how you can connect to that market (for example through viral marketing or through pamphlets) and also find out what their concerns are. If you skip this part, then your market may be hearing you but still not investing time and money because they fully satisfied with your work. One method to consider is cause-related marketing, which can have a huge impact on your organization's ability to attract interest. To begin research on  your market, look the contributions made to other NGOs like yours. You probably share a similar market.
   
• Connecting with your market can also be done through television. For example, CNN host a "heroes" programme. If you are serious about using TV to your advantage, then there are ways to go about it. Start small: contact your local media outlets and let them know about you and about any events you're hosting. It helps to tell a riveting story, one that is likely to get attention. Don't forget that media outlets are interested in the person and not the organization. If you have a website, make sure that it is media friendly with a section designed specifically for them. And don't forget that you can search through their stories to get an idea of how to sell yourself a little better. At the end of the day, the media are looking for a feel-good story, so tell yours.
   
• When you are send out requests for support, it is important to know where the money is going and why you need it. Be honest with the strengths and weaknesses of your request, but play them both to your advantage. For new organizations, this is especially important, because they typically have a lot of perceived weaknesses. Think about the following problems:

1. You've identified a community for help, but it has survived without you in the past. So why does it need your help now? How do you know that your organization is needed?
2. Have you done market analysis?

• Look locally for your market before going to "distant benefactors". The people most likely to give are those who are somehow made better off through their contributions. For example, corporations benefit from giving to organizations that work in the same communities as their employees and clients. Keep this in mind.
• The third step is to create the marketing material you will need to connect with the market. Make sure that it informs people that every little bit counts. Also, give them ways to get involved in the organization. Sometimes the most effective marketing strategy involves meeting people at events and building contacts, so keep your eyes and ears out for the goings-on of other organizations. Also, when you begin writing material, keep in mind that there are techniques that are more effective than others. So take a look at some tips suggested by people who have ample experience in soliciting interest. 
• Once interest starts coming in, don't let the relationship end there. Keep your market abreast of changes and developments. Let them know what you're up to and the impact you've made. Use newsletters and reports to do this.
• If you think that people know who you are and what you do, then test yourself: ask volunteers, staff and members of your board of directors to talk about the organization for five minutes. If they are able to do so effectively, then you need to get them working. However, you might be surprised to find out that they can't tell you much... And if that's the case, then how likely is it that the general public knows what you do? This is why a clear, effective mission statement is so important!
• If you need marketing tips, there are many online sources, for example: http://www.goodmarketingideas.com/. Also, libraries and bookstores offer tons of books about marketing. There is even a Marketing for dummies book!
• Successful marketing means careful planning before the campaign begins. In order to test your readiness, consult the following website and use their checklist: http://www.raise-funds.com/a98forum.html. This will give you an idea of what needs to be addressed before continuing.

• As much as generating contributions and interest is important for an NGO, not wasting what you've got is even more important. So make sure you understand how to maintain a proper balance-sheet. The most important aspects are that you use your money wisely and that all of the information you present to the public is correct and accurate.
• Learning how to balance a proper budget doesn't have to mean taking accounting courses, but research is good just the same. Here is a sample balance sheet that you could look at. Alternately, you could look at the Canada Revenue Agency's website to get more information.

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