How to start a nonprofit with no money: Practical guide

Successful nonprofits don’t thrive because they started with lots of money—they thrive because they had the right help to get them the money they need. And that’s exactly why Harness exists. We are a platform  that places experts in your team to help you get from 0-grow. We understand nonprofits inside and out, with over 30 years of experience working, volunteering, running nonprofits. Our team guides you step-by-step, helping you not only raise money, but become sustainable.

Can you really start a nonprofit with no money?

The short answer? Yes, but it comes faster with help. Starting a nonprofit with no money doesn’t mean you won’t need resources—it just means you’ll need to be strategic and leverage support along the way.

Money isn’t what makes a nonprofit successful. A clear mission, strong leadership, and a community of supporters matter way more in the beginning. Some of the biggest nonprofits today started with nothing but passion and a plan. Instead of worrying about how much cash you have, focus on how to rally people around your cause. Volunteers, in-kind donations, and strategic partnerships can take you further than you think.

Step 1: Define your narrative and vision

Before worrying about funding, paperwork, or anything else, you need to be crystal clear on why your nonprofit exists. Your mission statement is the heart of your organization—it tells people what you do, who you help, and why it matters.

A strong mission statement should be:

• Simple – Avoid jargon. If a 5th grader wouldn’t understand it, it’s too complicated.
• Specific – Who do you help? How do you help them? What change do you want to see?
• Inspiring – Your mission should make people feel something and want to get involved.

For example, instead of saying:

• “We help communities thrive.”
  Try:
• “We provide free after-school tutoring for low-income students to help them succeed in school and beyond.”

Once you have your mission, your vision statement looks ahead. This is what success looks like if your nonprofit achieves its mission. Think big. Where do you want your organization to be in five or ten years?

Having a strong mission and vision makes it easier to attract donors, volunteers, and supporters. People want to be part of something meaningful, and if they understand your purpose, they’ll be more likely to help.

If you’re feeling stuck, look at similar organizations for inspiration. What makes your nonprofit unique? What problem are you solving that no one else is tackling in the same way? Taking the time to get this right will make every other step—fundraising, outreach, partnerships—so much easier.

Step 2: Create your nonprofit business plan

A nonprofit is still a business—it just has a mission instead of a profit goal. Without a solid plan, even the best ideas can fall apart. A nonprofit business plan helps you stay organized, attract supporters, and prove to potential donors and partners that you’re serious.

A strong business plan should cover:

• Mission and vision – A clear statement of your purpose and long-term goals.
• Programs and services – What your nonprofit will actually do to achieve its mission.
• Target audience – Who you serve and how you plan to reach them.
• Funding strategy – How you will raise money to sustain your work.
• Operations plan – Day-to-day details like staffing, volunteer roles, and logistics.

Many new nonprofits skip this step because they think business plans are only for companies trying to make money. But a well-thought-out plan can help you avoid common pitfalls and show potential donors, grant makers, and partners that your nonprofit is built to last.

If you’re unsure where to start, look at templates online or find examples from similar organizations. The more planning you do now, the easier it will be to turn your vision into reality.

Step 3: Build a strong nonprofit board

Even if you’re the driving force behind your nonprofit, you can’t do it alone. A nonprofit board is more than just a legal requirement—it’s a team of people who help guide your organization, make important decisions, and connect you to funding and resources.

What does a nonprofit board do?

Your board is responsible for:

• Overseeing the nonprofit’s mission and ensuring it stays on track
• Managing finances and approving budgets
• Helping with fundraising and networking
• Providing advice and guidance based on their expertise

How to choose the right board members

Not all board members need to be nonprofit experts, but they should bring skills and connections that help your organization grow. Look for people who:

• Are passionate about your mission
• Have experience in areas like fundraising, marketing, finance, or law
• Can introduce you to potential donors or partners
• Are willing to contribute time and effort, not just hold a title

How many board members do you need?

The number varies by state, but most require at least three board members. Check your state’s rules before filing for nonprofit status.

A strong board can make a huge difference in your nonprofit’s success. Choose wisely, and don’t be afraid to ask for help—many experienced professionals are happy to serve on nonprofit boards, especially if they believe in your cause.

Step 4: Understand nonprofit registration requirements

Before your nonprofit can officially operate, you’ll need to go through the legal steps to register it. The process might seem overwhelming, but breaking it down into smaller steps makes it manageable.

1. Check state requirements

Nonprofit registration rules vary from state to state, so start by researching what your state requires. Most states will ask you to:

• Choose a unique name for your nonprofit
• File Articles of Incorporation with the state
• Appoint a board of directors (usually at least three people)

2. Get an Employer Identification Number (EIN)

An Employer Identification Number (EIN) is like a Social Security number for your nonprofit. You’ll need it to open a bank account, apply for grants, and file taxes. The good news? It’s free to apply through the Internal Revenue Service (IRS) website.

3. File Form 1023 for tax-exempt status

To become a 501(c)(3) tax-exempt nonprofit, you’ll need to file Form 1023 (or Form 1023-EZ for smaller organizations) with the IRS. This is what allows donors to make tax-deductible contributions to your nonprofit. Approval can take weeks or even months, so the sooner you apply, the better.

4. Register for state tax exemptions (if needed)

Some states require separate applications for state-level tax exemption, so check with your local tax agency.

5. Apply for necessary licenses and permits

Depending on your activities, you may need specific permits to fundraise or operate legally in your state. If you plan to raise money from the public, you’ll likely need to file for charitable solicitation registration as well.

Getting through the legal paperwork takes time, but once it’s done, your nonprofit is officially recognized—and that’s a big step forward.

Step 5: Seek fiscal sponsors

If filing for tax-exempt status feels overwhelming or you need to start fundraising immediately, a fiscal sponsor can be a great solution. A fiscal sponsor is an already established nonprofit that agrees to accept donations and grants on your behalf, allowing you to operate under their tax-exempt status while you get your own nonprofit fully set up.

How fiscal sponsorship works

Instead of waiting months for IRS approval, your nonprofit can partner with a fiscal sponsor that already has 501(c)(3) tax-exempt status. Donations to your nonprofit go through them, making it easier to:

• Apply for grants
• Accept tax-deductible donations
• Focus on growing your programs instead of handling complicated financial and legal paperwork

Pros and cons of fiscal sponsorship

Pros:

• Immediate ability to accept tax-deductible donations
• Less administrative and legal paperwork
• Access to financial management support from the sponsoring organization

Cons:

• Sponsors typically take a small percentage of donations for administrative costs
• You may have less control over how funds are managed
• Not all sponsors are a good fit—some have strict requirements for partnership

How to find a fiscal sponsor

Look for established nonprofits with a similar mission and a history of working with emerging organizations. Some networks, like the National Network of Fiscal Sponsors, can help connect you with potential partners.

Fiscal sponsorship isn’t a long-term substitute for getting your own nonprofit status, but it’s a smart way to start fundraising while working toward full independence.

Step 6: Launch fundraising campaigns with no initial investment

Raising money without an upfront budget might sound impossible, but many nonprofits do it successfully by starting small and using creative, low-cost strategies. The key is to focus on engaging your community, building relationships, and making it as easy as possible for people to support your cause.

Use online crowdfunding

Crowdfunding platforms let you raise money without needing a big network or prior funding. Sites like GoFundMe, Givebutter, and Facebook Fundraisers allow you to create a campaign, share your story, and start collecting donations right away.

Tips for a successful crowdfunding campaign:

• Write a compelling story that explains why your cause matters.
• Use pictures and videos to create an emotional connection.
• Set a realistic goal and break it down (e.g., "$500 covers supplies for 10 students").
• Share regularly on social media and encourage supporters to spread the word.

Tap into peer-to-peer fundraising

In this model, your supporters fundraise on your behalf by creating their own mini-campaigns. For example, a donor might start a birthday fundraiser for your nonprofit, asking friends to contribute instead of giving gifts.

Hold free or low-cost fundraising events

You don’t need a fancy venue or big budget to host an event. Some simple but effective event ideas include:

• Restaurant fundraisers – Partner with a local restaurant that donates a percentage of sales.
• Community yard sales – Ask supporters to donate items, then sell them at a fundraiser.
• Virtual challenges – Organize an online fitness or reading challenge where participants raise money.

Offer recurring donation options

Instead of just asking for one-time gifts, encourage people to sign up for small, monthly donations. A $10 monthly donation feels manageable for donors but adds up over time for your nonprofit.

Leverage in-kind donations

Money isn’t the only way people can support your nonprofit. Ask for donations of goods or services that help you get started, like office space, supplies, or professional expertise.

Fundraising without money upfront takes effort, but by using the right strategies, you can start generating funds while growing a strong base of supporters.

Step 7: Volunteers and pro bono services

When you don’t have money to hire staff, volunteers and pro bono professionals can help fill the gaps. Many people are willing to donate their time and skills to causes they care about—you just have to know where to find them.

Building a strong volunteer network

Volunteers can help with everything from organizing events to running social media. To attract the right people:

• Be specific about your needs – Instead of just saying, “We need volunteers,” list clear roles like “Social Media Manager” or “Event Coordinator.”
• Make it easy to get involved – Use platforms like VolunteerMatch, Idealist, or even a simple sign-up form on your website.
• Show appreciation – A simple thank-you message, shout-out on social media, or small perk (like free event tickets) can go a long way in keeping volunteers engaged.

Finding professionals who offer pro bono work

Many professionals—especially those in marketing, law, design, and accounting—offer pro bono (free) services to nonprofits. Here’s where to find them:

• Local law firms – Some provide free legal help for nonprofit registration and compliance.
• Marketing and design professionals – Sites like Catchafire and Taproot connect nonprofits with experts willing to help for free.
• Universities and business schools – Students often need real-world experience and may help with branding, fundraising strategies, or grant writing.

Leveraging board members’ skills and networks

Your nonprofit board can also be a great resource. Many board members have connections with professionals who may be willing to donate their time and expertise. Don’t be afraid to ask for introductions.

By tapping into the right people, you can access valuable skills without spending money—helping your nonprofit grow faster while keeping costs low.

Step 8: Form community partnerships

Building strong relationships with businesses, media outlets, and other nonprofits can help your organization grow without requiring a large budget. These partnerships can provide funding, visibility, and resources that you might not have access to on your own.

Partnering with businesses

Many companies want to support local nonprofits, especially if your mission aligns with their values. Some ways businesses can help include:

• Corporate sponsorships – A company donates money in exchange for recognition at your events or on your website.
• In-kind donations – Businesses can provide supplies, office space, or services instead of cash.
• Employee giving programs – Some companies match employee donations to nonprofits or offer volunteer grants for employees who give their time.

Start by reaching out to small, local businesses that share your mission. Offer a clear benefit—whether it’s marketing exposure, tax deductions, or community goodwill—to make the partnership appealing.

Getting media outlets involved

Local news stations, radio stations, and online publications are always looking for feel-good stories. A feature about your nonprofit’s mission and impact can help you gain supporters without spending a dime on advertising.

• Send out press releases when you launch a new program or reach a big milestone.
• Offer to write guest articles for community blogs or newspapers.
• Build relationships with local journalists and invite them to your events.

Collaborating with other nonprofits

Instead of seeing other nonprofits as competition, look for ways to team up with organizations that have a similar mission.

• Co-host events to share costs and reach a wider audience.
• Cross-promote fundraising campaigns.
• Share resources like office space, volunteers, or grant-writing expertise.

Strong partnerships can amplify your impact and help you reach new supporters without spending extra money.

Step 9: Apply for grants and community funding

Grants can be a game-changer for new nonprofits, providing funding without the need to ask for individual donations. While they take time and effort to secure, they can help cover startup costs and fund your programs.

Where to find grants for new nonprofits

Many organizations and government agencies offer funding specifically for nonprofits. Some great places to start include:

• Foundation Directory Online – A database of grant opportunities from private foundations.
• Grants.gov – Lists federal grants available for various causes.
• Local community foundations – Many cities and states have funds available for nonprofits working on local issues.
• Corporate grant programs – Some companies, like Walmart and Google, offer small business and nonprofit grants.

How to write a strong grant application

Grant writing can feel overwhelming, but following a clear structure makes it easier. Most applications will ask for:

• A clear mission statement – Explain exactly what your nonprofit does and why it matters.
• A detailed budget – Show how you’ll use the funds and how they’ll make an impact.
• Proof of need – Use statistics, research, or personal stories to show why your cause is important.
• A sustainability plan – Funders want to know how you’ll keep your nonprofit running after the grant money is used.

Start with small, local grants

Many large grants are competitive and require an established track record. Instead, begin with smaller community grants that have fewer requirements and are easier to win. Even a $500 or $1,000 grant can help cover registration fees, marketing costs, or essential program expenses.

Applying for grants takes persistence, but securing even one can give your nonprofit the momentum it needs to grow.

Step 10: Establish your nonprofit’s public presence

Now that your nonprofit is officially set up, it’s time to spread the word. A strong public presence helps you attract donors, volunteers, and community support—without spending a fortune on marketing.

Create a professional website

A website gives your nonprofit credibility and provides a place where people can learn about your mission, donate, and get involved. If you don’t have the budget for a web designer, you can:

• Use free or low-cost website builders like Wix, WordPress, or Squarespace.
• Apply for Google for Nonprofits, which includes free access to Google Workspace and $10,000 per month in free Google Ads.
• Keep it simple—a homepage, an “About” page, a donation page, and a contact page are enough to start.

Leverage social media

Social media is a free and powerful way to connect with supporters. The key is consistency—posting once and disappearing won’t help you build an engaged community.

• Facebook & Instagram – Great for storytelling, event promotions, and donation campaigns.
• Twitter (X) – Best for real-time updates and engaging with other nonprofits.
• LinkedIn – Useful for networking, recruiting board members, and applying for grants.
• TikTok & YouTube – If your nonprofit has a visual or emotional component, video content can be a great way to grow an audience.

Engage with your community

A strong public presence isn’t just about being online—it’s about showing up where your supporters are.

• Attend local networking events and nonprofit meetups.
• Host small, in-person gatherings to introduce people to your mission.
• Partner with local businesses or schools to reach more people.

The more visible your nonprofit is, the easier it will be to attract the funding and support you need to grow.

Step 11: Plan for sustainability and growth

Starting a nonprofit with no money is one thing—keeping it running long-term is another. The key to sustainability is having a plan for steady funding, strong leadership, and a clear strategy for growth.

Diversify your funding sources

Relying on a single source of income, like grants or one-time donations, can be risky. Instead, build a mix of funding streams to create financial stability:

• Recurring donations – Encourage supporters to give monthly instead of one-time. Even small donations add up over time.
• Grants – Continue applying for local, corporate, and government grants.
• Fundraising events – Plan at least one or two major fundraising events per year to engage your community.
• Merchandise or services – Selling branded T-shirts or offering educational workshops can bring in extra funds.

Strengthen leadership and operations

As your nonprofit grows, you may need to move beyond volunteers and bring in paid leadership, like an executive director. This person will help manage operations, fundraising, and strategic planning. To make this transition easier:

• Set clear job descriptions and expectations for staff and board members.
• Invest in training and mentorship for your team.
• Document processes so your nonprofit runs smoothly even as leadership changes.

Measure impact and share success stories

People are more likely to donate and stay involved when they see the real impact of their support. Keep track of your results and share them regularly through:

• Stories and testimonials from those you’ve helped.
• Reports on how donations are being used.
• Videos and photos that bring your mission to life.

Sustainability doesn’t happen overnight, but with the right strategies in place, your nonprofit can continue making a difference for years to come.

Final thoughts

Starting a nonprofit with no money isn’t easy, but it’s absolutely possible with the right approach. The most important thing isn’t how much funding you have at the beginning—it’s having a clear mission, a strong support system, and a smart strategy for growth.

A lot of people look for “free” solutions when launching a nonprofit, but free isn’t always what it seems. Free tools often come with limited features, hidden costs, or take up valuable time that could be spent growing your mission. What truly matters is finding the right support, the right systems, and the right strategy to make your nonprofit sustainable—not just something that exists on paper.

That’s where Harness comes in. We’re not the cheapest option, and we’re not free—but that’s because we actually work. We help nonprofits build recurring revenue, engage donors in meaningful ways, and take the guesswork out of fundraising. The real question isn’t, “Can I start for free?” It’s, “How do I start the right way?” If you’re ready to build something that lasts, we’re here to help.

Frequently asked questions

Can you really start a nonprofit with no money?

Yes, but it requires creativity, persistence, and a willingness to leverage resources beyond cash. Many nonprofits start by relying on volunteers, in-kind donations, and fiscal sponsorships before securing formal funding. The key is to focus on building relationships and demonstrating impact from the start.

How long does it take to get tax-exempt status?

The timeline varies. If you file Form 1023-EZ, you could be approved in a few weeks. If you file the standard Form 1023, it may take several months. Planning ahead and ensuring your paperwork is complete can help speed up the process.

What is a fiscal sponsor, and do I need one?

A fiscal sponsor is an established nonprofit that allows you to operate under its tax-exempt status while you set up your own. It’s a great option if you need to accept tax-deductible donations or grants right away, but it’s not required. Many nonprofits use fiscal sponsorship as a temporary solution before obtaining their own 501(c)(3) status.

How do I find board members for my nonprofit?

Start by looking within your network—friends, colleagues, and community members who share your passion. You can also use platforms like LinkedIn, VolunteerMatch, or local nonprofit associations to connect with experienced professionals interested in serving on a board.

What are the biggest mistakes new nonprofits make?

One of the biggest mistakes is skipping the planning stage and jumping straight into fundraising without a clear mission or strategy. Many new nonprofits also rely too much on a single source of income, like grants, which can be unpredictable. Another common issue is not building a strong board or team for long-term support. Tracking finances and impact from the beginning is also essential, but many new organizations overlook this step, which can create challenges down the road.

Do I need a website to start a nonprofit?

Yes. A website makes your nonprofit look credible and provides a central place for potential donors and supporters to learn more. It doesn’t have to be fancy—just a simple site with your mission, contact information, and a way to donate is enough to start.

What’s the fastest way to start raising money?

Crowdfunding and peer-to-peer fundraising are two of the quickest ways to start bringing in funds. You can set up an online campaign in minutes and start sharing it with your network. Hosting small fundraising events, seeking in-kind donations, and forming corporate partnerships are also effective ways to generate support early on.

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