For any nonprofit to succeed, the leaders and volunteers must be skilled, trained well and prepared to create long-term success. A successful group needs loyal team members and plenty of financial support from local, state or national communities. But like with starting a business, starting a nonprofit organization includes numerous risks and dilemmas to consider.

Becoming tax exempt

A non-profit organization is tax exempt and has to apply for this status with the Internal Revenue Service. This is known as a 501(c)(3) corporation that meets certain requirements. The organization cannot support a specific political party or candidate, and it cannot benefit the private interests of any individual. To retain this tax-exempt status, the organization must meet these requirements indefinitely, and this is a challenge to many charities.

Staying funded

A charitable organization needs to actively raise funds that are provided by generous donors. Most of these funds come from individual members and corporate donors. In return, the donors make charitable deductions on their tax returns.

When a brand-new organization is starting out, few people know who they are and are willing to trust them. The first few years are the hardest for a nonprofit organization to remain in operation. Nearly 30% of nonprofit groups fail to generate sufficient cash flows within 10 years.

Face-to-face fundraising

In this day and age, nearly every consumer is using a virtual platform, whether it's online shopping or online banking. Generating public interest in a new, unknown charity is best done virtually where the audience is infinite online. The organization can promote a website that is packed with detailed information about the charity's mission and services.

Remaining engaged

Staying active with local communities is another hidden challenge. Many businesses are not interested in promoting most philanthropic ideas, so it could take years to find loyal sponsors. For instance, an organization that promotes pet adoption has an easier time finding support than one that promotes dog or cat orthopedic devices. Usually, the more unique and specific the idea is, the harder it is to find sponsors.

The challenges of starting a philanthropic organization are often the same. There are the problems of finding donors and gaining community support and remaining in good standing with the public. Every challenge can be overcome with simple planning and brainstorming.