Building Stronger Communities Through Service

According to the U.S. Department of Veterans Affairs, over 18.6 million Veterans live within our communities. While these individuals represent diverse age groups, genders, races, and other demographics, they share an unparalleled understanding of the challenges and opportunities of military life. This shared experience often inspires Veterans to launch charitable initiatives and form nonprofit organizations to help fellow Veterans.

In this article, I explore the impact of Veteran-led charitable initiatives and provide a checklist to guide aspiring entrepreneurs in launching their own missions.

Overcoming Challenges to Serve Our Community

Veterans and the organizations that serve them, especially at the local level, play a critical role in addressing the unique challenges faced by our military and Veteran connected community. From overcoming physical and mental health struggles to tackling financial and societal barriers, these organizations empower Veterans to lead fulfilling post-military lives. Their missions are both heartwarming and inspirational, deserving of our collective support.

Starting a nonprofit shares many foundational steps with launching a for-profit business. Both require strong ideas, leadership, strategic planning, networking, and a clear ability to engage their audience. In fact, all nonprofits are incorporated for-profit businesses. However, nonprofits face additional steps and complexities, including IRS, state and local compliance, sustaining donor revenue year-over-year, reaching diverse audiences, and other legal and regulatory standards. These challenges contribute to a high failure rate: an estimated 50% of non-profits fail within the first year, and an additional 30% do not survive beyond 10 years.

Those who wade into the waters often underestimate the challenges of social entrepreneurship. Despite obstacles, Veteran-led nonprofits fill critical resource gaps, and we need them thriving in our local communities. Here are some numbers to consider: Of the 1.6 million nonprofits registered in the U.S., only about 45,000 (3%) specifically serve Veterans and military-connected communities. Even more striking is that 92% of these organizations operate with budgets under $1 million, and 55% generate less than $50,000 annually. This leaves many local resources struggling to compete for funding. If we take a reverse look at these numbers, we see that 8% of veteran-serving nonprofits—approximately 3,600 organizations—share over three-quarters of all charitable dollars received. These figures can seem daunting, but we believe where there is a will, there is a way.

Breaking Barriers with Fiscal Sponsorship

Veterans Collaborative is proud to be the only national fiscal sponsor exclusively focused on supporting charitable ideas founded by or serving Veteran and military-connected communities. Fiscal sponsorship allows Veterans and their projects to share administrative resources with a larger organization, providing immediate tax-exempt status, financial management, and compliance support, so they can focus on the critical tasks of partnerships, relationship building, fundraising, growth, and serving.

By leveraging fiscal sponsorship, aspiring nonprofit leaders can fast-track their start-ups while focusing on their mission. Here’s how it works:

1. Choose a Project Name and Write a Mission Statement

2. Assemble Advisors

3. Develop a Strategic Plan

4. Champion, Fundraise, and Serve

5. Incubate, Grow, and Potentially Transition

Veterans Collaborative takes care of the rest while advising and supporting you along the way. You can connect with our team for a Discovery Call by completing our Venture with Us form.

Steps to Launching a 501(c)(3) Nonprofit

For those ready to take the plunge and establish a stand-alone nonprofit, here are some next steps to consider:

1. Secure a Board of Advisors

2. Seek Professional Legal, Tax, and Financial Advice

3. Write a Mission Statement

4. Prepare a Business and Strategic Plan

5. Choose a Business Name and Register It Nationwide

6. Draft Bylaws

7. Appoint a Board of Directors

8. File Incorporation Paperwork with Your State

9. Hold an Initial Member Meeting

10. Obtain an Employer Identification Number (EIN)

11. Apply for 501(c)(3) Tax Exemption

12. Obtain Business Licenses and Permits

13. Ensure Ongoing Compliance

14. Establish a Fundraising Plan and Register Nationwide

15. Review and Adjust Annually

Choosing the Right Path

Deciding between fiscal sponsorship and forming an independent nonprofit is a personal choice. Both options require passion, leadership, strategy, and commitment. Veterans Collaborative is here to advise and support you no matter which path you choose.

Below are additional resources tailored for Veteran Social Entrepreneurs:

• Veterans Business Outreach Centers – Offering entrepreneurial development services to Veterans, transitioning service members, and military spouses.

• Vets First Verification Program – A VA program that verifies Veteran-run organizations for priority contractor status.

• National Council of Nonprofits – Providing resources, tools, and templates for non-profits.

• Veteran Entrepreneur Portal – Connecting Veteran entrepreneurs to business and financing resources.

• Boots to Business – An SBA program offering entrepreneurial education to transitioning service members and their spouses.

At Veterans Collaborative, we believe Veterans and their advocates are the driving force of hope and change in our communities. They are the essential leaders needed across all sectors from nonprofits and government to corporations and schools. Discover how our fiscal sponsorship services and support can help bring your charitable vision to life at www.veteranscollaborative.org. Together, we can ignite change and amplify the impact of Veterans and the vital missions they champion here at home.