HOW TO START AN NGO

How to Start an NGO

Starting an NGO can be a very time-consuming process. It requires a strong vision and

dedication from an individual or group that share a common concern about a community. If

initiated correctly in an organized and strategic way, the services implemented to benefit the community can be very helpful and resourceful...

BUILDING ON GOOD PRINCIPLES & PRACTICE

The first essential step in starting an NGO is to determine the purpose of the organization. Do so with a clear and concise written statement that describes the charitable mission of the organization. The statement must be broad enough to reflect the values of the NGO and why it exists. It is important to remember who the target community of the organization is and why it is important to reach out to this community..

Chose a Name

Before registering an NGO, it is important to choose a name. It is essential to research local

government agencies and state offices to make sure that the proposed name is not already being used. This also applies to the logo if the NGO is going to have one..

Establish an Initial Board of Directors

When setting up an NGO, the founder(s) must recruit the initial board of directors. It is helpful to start with a small group of committed individuals because the first board is the foundation of the NGO..

Write Articles of Incorporation

The articles of incorporation should provide a legal description of the NGO assigning power to the board. Once drafted, they should be submitted to the board for final approval before

registration..

• Name of the NGO

• Purpose/Mission

• A statement declaring the NGO is nonprofit

• Location of the NGO

• Number and names of the board members

• Extent of personal liability

Legal Expertise

Because there are many legal matters that an NGO must deal with in first starting up, it is

sometimes helpful to seek a consultant.

·         Registration

·         Tax

·         Documentation

·         Financial

·         Report

Accounting System

All NGOs need a system for recording where money comes from and how it is used.

Seeking the help of an accountant who can help set up a bookkeeping system.

It is important to decide whether the bookkeeping system should be cash or accrual.

Cash based accounting is a system where:

Cash Payment/Receipt Vouchers & Book

Bank Payment/Receipt Vouchers & Book

Summary/Daily Petty Cash Book

General Ledger

Fixed Assets Register 
Attendance Register

Stock Register

Advance Payment Register (Advance to third parties & Staff Advances)

Check Register

Donation receipt issue register

Visitor Register

 Fundraising Plan

Money required for an NGO to operate primarily goes into their educational and social

programs, the overall operation of the NGO (administration, utilities), and projects (surveys,

giving programs).

Network.

Make friends with people and organizations doing similar work so that you can learn from their successes and mistakes. Networking also helps you to know when to team up and when to divide your efforts for maximum effectiveness. This website is a good place to start networking.

 Additional Steps

There are only a few miscellaneous tasks that must be completed before the NGO

can fully operate. Some of these include:

• Hiring staff and volunteers

• Reaching out and becoming known in the community

• Seeking office supplies (furniture, computers, machinery)

• Insuring the NGO

• Holding orientation.