Information For Start-Ups:

If you are seeking to start a new nonprofit, we recommend that you do the following:

1. Read the following from Texas CBAR’s Legal Resource Library:

2. Do market research:

  • Will your organization serve an unmet need
  • Are there other competing organizations
  • Will it duplicate part or all of an existing program within another nonprofit?

3. Develop a mission statement.

4. Develop a detailed plan for your programs and activities.

5. Research and find existing organizations that you can collaborate with.

6. Recruit qualified people to serve on your board of directors.

  • Texas law requires a minimum of three directors/board members at all times.
  • Texas CBAR recommends that you maintain seven directors/board members.

7. Compile a list of sources of financial support (actual, anticipated or potential).

8. Prepare a budget. Develop a fundraising plan and programs.

9. Meet with potential donors.

  • While many donors are not willing to provide financial support until tax exempt status is achieved, they are able to indicate whether a nonprofit’s proposed programs are those that are likely to be funded. We recommend that you meet with potential funders early, not to ask for donations necessarily, but to gauge their level of interest in the mission and purpose of the organization, and whether it is the type of organization that they would be willing to support. This also provides a networking opportunity with potential donors. If donors lack interest in the organization’s mission, obtaining 501(c )3 status will not cure this lack of interest. If the nonprofit is going to survive financially, it should cultivate potential funding sources early on.