How much money does it take to run a homeless shelter

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How much money does it take to run a homeless shelter

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Last Updated: February 14, 2022 References Approved

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Anyone can be homeless at any time. While most people can't fathom the idea of not having a roof over their head or a daily shower, millions of people suffer everyday with homelessness. Unfortunately, the number of homeless people far outweighs the number of shelters. You can help people by starting your own nonprofit homeless shelter, but be prepared for a lot of hard work.

Steps

Part 1Part 1 of 3:Organizing Your Shelter

1Prepare a mission statement. Clearly outline your intentions, goals, and services. Identify the number of individuals you can shelter and whether you will offer a food pantry, pet assistance, or career counseling. Your mission statement can be anywhere from a few sentences to a few pages.

2Find a location for your shelter. Ideally, someone will donate a building to you. Otherwise, you'll need to pay rent, which can make it hard to run a homeless shelter.[1] X Research source Go to source  Drive around the neighborhood and check for abandoned buildings. You can find the owner by visiting the county assessor's office and checking tax records.

  • Also make requests for a donation through media, such as radio/TV shows, newspapers, and social media.
  • You can only have a shelter in an area zoned for it, so check zoning laws as well.

3Walk through the buildings. Your building should have bathrooms and working showers for the residents. Some homeless shelters have individual showers, but many have communal showers.[2] X Research source Go to source  When you visit a building, check the plumbing and confirm there is enough space to install showers.

  • Decide whether you want to provide meals to your residents as well. If you do, there needs to be a working kitchen where you can prepare food. You'll also need space for residents to eat, which should be separate from the sleeping area.

4Partner with another nonprofit. Talk to nonprofits in your area and discuss your interest in starting a homeless shelter. They might give you tips about how to get off the ground. They might also have funds you can use to defray start-up costs.[3] X Research source Go to source

  • Consult with religious institutions, such as churches, synagogues, and mosques. Their values should align with yours, so they might be particularly eager to help you start a homeless shelter.

5Find financing. If you can't get another nonprofit to fund you, you'll need to find funds on your own. This can be a challenge. You can apply for government grants, which you can find online. In the U.S., check grants.gov and usa.gov.[4] X Research source Go to source  Consider other sources of funding:

  • Friends and family. Show them your proposal in which you explain why you are starting the homeless shelter and how you will use the money.[5] X Research source Go to source
  • Donors. People who don't know you might donate to the homeless shelter. They'll need some way to find you, so you might want to create a website. Set up the website so that you can accept Paypal.

6Get legal help. You need to jump through many hoops to start your homeless shelter. You'll need expert legal advice, which only a qualified attorney can provide. Although money might be tight, you should still look for a lawyer.

  • Some lawyers are happy to provide services pro bono to nonprofits. Talk to a local attorney and ask if they know someone willing to work pro bono.

1Incorporate. You'll need to file paperwork with your jurisdiction to become a nonprofit corporation. In the U.S., you should file articles of incorporation.[6] X Research source Go to source  Your state's Secretary of State website should have "fill in the blank" forms you can use. Find the correct website at https://www.irs.gov/charities-non-profits/state-nonprofit-incorporation-forms-and-information.

  • Your articles will require basic information about your corporation, e.g., your name, principal place of business, and a registered agent who can accept legal papers.[7] X Research source Go to source
  • Submit your articles to the address provided along with your fee. Each jurisdiction sets its own fees, but plan on spending a couple hundred dollars.[8] X Research source Go to source

2Draft bylaws. Your bylaws are your nonprofit's operating manual. You probably don't need to file them with your jurisdiction, but you should keep them at your principal place of business. Nonprofit bylaws should contain the following:[9] X Trustworthy Source Public Counsel Largest pro bono law firm in the U.S. Go to source

  • Basic information, such as your corporate name and the location of your principal office.
  • A description of your business purpose.
  • An explanation of how you are dedicating your nonprofit's assets. For example, if you dissolve, you will probably give your assets to another nonprofit.
  • The number of directors, as well as their qualifications and duties.
  • The number of officers, including information about how they will be elected, their duties, and compensation.
  • A well-developed conflict of interest policy, which is meant to protect your nonprofit from being taken advantage of by directors, officers, and other insiders.

3Get a business license. Contact your city or county government to get the applicable business license. Generally, you'll need to provide your name, contact information, tax ID number, and number of employees. You usually must pay a fee.

4Obtain a tax ID. Even though you're a nonprofit, you'll still need a tax ID. In the U.S., you should get your Federal Employer Identification Number (FEIN) from the IRS. You can get it online: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.

5Apply for federal tax-exempt status. U.S. nonprofits should download the application from the IRS website: Form 1023, Application for Recognition of Exemption Under Section 501(c)(3). If you're a smaller nonprofit, check whether you can file Form 1023-EZ.

  • You'll need to provide financial information. If you're a new nonprofit, you must provide financial data for every year you've been in existence and estimates for future years. You may need an accountant to help you.
  • You should file for tax-exempt status within 27 months of filing your articles of incorporation. If you do, your tax-exempt status is retroactive to the date you filed your articles.[10] X Research source Go to source
  • Once you are approved, you'll receive a determination letter. Hold onto this, since you will probably need to show it to many people.

6Apply for state tax-exempt status. In the U.S., you might also need tax-exempt status from your state. Contact your state's tax agency. Generally, you'll need to complete an application and submit a copy of your federal determination letter.[11] X Research source Go to source

Part 3Part 3 of 3:Preparing to Open

1Obtain insurance. Many things could go wrong in the shelter. For example, a resident might slip and fall or residents might become violent. In any event, you'll need to get insurance to protect you.

  • You can obtain a policy by find an insurance agent in your phone book. Also talk to other homeless shelters about what insurance they carry.

2Appoint directors to the board. Your directors will make major financial and policy decisions for your homeless shelter. Your jurisdiction should set the number of directors you must have. However, in the U.S., you should have at least three.[12] X Research source Go to source

  • Find people with skills that will benefit your homeless shelter. For example, a former manager of a homeless shelter might make a great director.
  • Prominent business people also make good directors. They know other business owners in the community and can raise your profile.

3Convene an board of directors meeting. At your initial meeting, the directors should take care of the following tasks:[13] X Research source Go to source

  • Adopt your bylaws.
  • Appoint officers, such as President, Vice President, Treasurer, and Secretary. In a small nonprofit, one person can take on more than one role.
  • Note that you have received tax-exempt status.
  • Authorize someone to open a bank account for the homeless shelter.

4Hire volunteers. One or two people can't run a homeless shelter on their own. Instead, you'll need plenty of volunteers who can work at night and in the morning. Advertise for volunteers in your local newspaper and online.[14] X Research source Go to source

  • If you partner with a religious institution, you can ask its members to volunteer. Request an opportunity to speak to the congregation about your homeless shelter.

5Train volunteers. Contact a nearby shelter and ask if they can send someone over to give trainings on how to run things. Staff will need to check in residents, handle violent or unstable residents, and keep the shelter clean. You should make sure staff receives all necessary training.

  • Your staff also needs to be aware of state laws regulating homeless shelters. For example, in some states, the homeless are given ID numbers. Your staff will need to enter this information into a computer system.[15] X Research source Go to source

6Hire employees. You might not be able to get by with only volunteers. Instead, you might need to hire full- or part-time staff, such as janitors, cooks, security guards, etc. Comply with your jurisdiction's laws regarding hiring employees.

  • In the U.S., you'll need to report all new hires to your state's New Hire Reporting office within 20 days. This is required for all full- or part-time employees but not independent contractors. You should register for an account with your state office.
  • You may also need to buy workers' compensation insurance. Talk to your insurance agent.

7Ask for food donations. Go to grocery stores and tell them about your homeless shelter. Ask if they can donate any food to your kitchen.[16] X Research source Go to source  Make sure to take copies of your legal documents with you to show that you are a legitimate nonprofit. Business owners will want to see your nonprofit determination letter as well as your business license and articles of incorporation.

8Request donations for other items. Your homeless shelter will need cots, pillows, blankets, toys, and other items.[17] X Research source Go to source  Ask businesses in the community if they are willing to donate. You should visit in person, which will give you a chance to talk about your shelter.

  • However, also cast a wider net. Write a letter to your local Chamber of Commerce describing your homeless shelter and stating what you need. They can share your letter with members.
  • Also consider giving an interview to local media. Point out that you are a nonprofit and you are accepting donations.

Community Q&A

  • Question Can you obtain an abandoned building from the city for a homeless shelter?

Community Answer You should stop into city hall and ask. Chances are, they won't give you the building. However, you might be able to arrange to rent the building for very little money.

  • Question What is the cost of licenses?

Community Answer It depends on where you live.  Ask your local municipality.

  • Question What if I am a kid but still want to create a charity?

Community Answer Just do it! Don't let your age stop you. Get support from your parents, teachers, neighbors, family and friends. Nowadays with social media anything is possible!

  • Question How do I talk to a town about putting in a homeless shelter?

Community Answer Go to City Hall. Ask the receptionist who would be able to help and proceed from there.

  • Question I want to start a battered women's shelter, I just need help how to get started. What do I need to do?

Community Answer It would help if you wrote your business plan first or at least part of it. Go to a city meeting and other women's groups to start getting the word out and make sure you incorporate your mission statement and what you need in your speech.

  • Question How do you do a business plan?

Community Answer You might find it helpful to read: How to Write a Business Plan. In terms of tailoring it to a homeless shelter, ask the municipality for some precedents or look online for examples from existing homeless shelter operations. It might help to call or visit one to talk to someone who has already prepared such a business plan, to find out what they'd recommend form part of this plan.

  • Question Who do you send the mission statement and/or business proposal to?

Community Answer It depends on where you live, as the details will vary from state to state/municipality to municipality, etc. Contact your local city offices and ask for their assistance in advising on the correct address.

  • Question How long will all of this take once you have done everything?

Community Answer That depends on where you live, what your state and local requirements are, and how much financial backing or support you have for the project. Give it at least a good six months or so of organizational work and getting permits, etc. but realistically, it may take longer.

  • Question How do I get into a shelter if I'm not a vet and it's veterans only?

Community Answer You don't. There are other shelters set up for non veterans, but a vets only shelter is just that.

  • Question What degree would be beneficial to run a camp and homeless shelter?

Community Answer A master's degree in social work would be great.

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Things You'll Need

  • Shelter Location and Building
  • Mission Statement
  • Business License
  • IRS Paperwork
  • Professionals
  • Volunteers or Employees

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References

  1. https://www.zakat.org/en/start-homeless-shelter/
  2. http://homelessadvice.com/how-homeless-shelters-work.html
  3. https://www.zakat.org/en/start-homeless-shelter/
  4. https://nonprofithub.org/starting-a-nonprofit/no-funds-no-problem-starting-a-nonprofit-from-scratch/
  5. https://www.legalzoom.com/articles/funding-your-nonprofit-startup
  6. https://www.zakat.org/en/start-homeless-shelter/
  7. http://www.nolo.com/legal-encyclopedia/form-nonprofit-eight-steps-29484.html
  8. https://nonprofithub.org/starting-a-nonprofit/no-funds-no-problem-starting-a-nonprofit-from-scratch/
  9. http://www.publiccounsel.org/tools/publications/files/0060.pdfMore References (8)
  10. http://www.nolo.com/legal-encyclopedia/nonprofit-tax-exempt-status-501c3-30124.html
  11. http://www.nolo.com/legal-encyclopedia/form-nonprofit-eight-steps-29484.html
  12. http://www.nolo.com/legal-encyclopedia/building-nonprofits-board-30046.html
  13. https://nonprofitally.com/start-a-nonprofit/first-nonprofit-meeting/
  14. https://www.zakat.org/en/start-homeless-shelter/
  15. http://homelessadvice.com/how-homeless-shelters-work.html
  16. https://www.zakat.org/en/start-homeless-shelter/
  17. https://www.zakat.org/en/start-homeless-shelter/

About This Article

Co-authored by: wikiHow Staff wikiHow Staff Writer This article was co-authored by wikiHow Staff. Our trained team of editors and researchers validate articles for accuracy and comprehensiveness. wikiHow's Content Management Team carefully monitors the work from our editorial staff to ensure that each article is backed by trusted research and meets our high quality standards.  This article has been viewed 399,282 times.   Co-authors:  23 Updated: February 14, 2022 Views:399,282 Article Rating:98% - 370 votes Categories: Nonprofit Organizations Article SummaryX

To start a nonprofit homeless shelter, try to find someone to donate a building to you by asking on social media and in newspapers. Once youve found a location, try to get funding from other nonprofits or through the government. Then, find and train volunteers to help you clean, check people in, and handle fights. At that point, you can start asking grocery stores to donate food, and ask any business to donate cots, bedding, toys, and other items. Keep reading to learn how to handle the liabilities and paperwork associated with nonprofits.

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Reader Success Stories

Cedraelle Jay

Cedraelle Jay

Jan 11 "Thanks for information, step by step."

Deb Dillon

Deb Dillon

Jan 2 "I am interested in providing shelter and support to the less fortunate. This information has given me a good place to start!"

Jacquelyn Pope

Jacquelyn Pope

May 30, 2017 "This article helped me to find direction, for when I first thought about starting a shelter, I felt like a fish out of water. I thought being that I never had any experience, that no one would give me any information and I had no chance of doing anything. Now I have a different outlook and there's a chance for me to do something for my fellow man."

Candace Alward

Candace Alward

Aug 29, 2018 "I now have some great guidelines to hopefully put a dream into action. For two weeks I have made so many lists on the things I thought needed to be done. Whew, this article saved me, and hopefully this desire to help those in need will come to be. Thanks."

Keyarsha Jordan

Keyarsha Jordan

Sep 7, 2016 "This put a smile on my face because I am trying to open up a homeless shelter for these people who are in need of the help to get on their feet again. All the information the article gave me was helpful and I thank you for this. Now I can take my steps."

Nadia Finch

Nadia Finch

Apr 6, 2019 "I am interested in starting a nonprofit; however, I have no background knowledge about where to start, who to speak to, where to go or how to do any of it. This article has given me an insight and an idea of all of that. It was very helpful."

Juanita Fredericks

Juanita Fredericks

Mar 9, 2017 "This article opened my eyes as to how I can make an impact in my own community. I have been struggling to get into voluntary work. It made me realize that I can use my own resources, such as my home, to help. "

Rebekah Hord

Rebekah Hord

Sep 2, 2016 "i didn't even think about my business statement and the importance of it through the process and promotion of the shelter. It helped me greatly to think outside the box and truly evaluate my goal."

Dawn Hoosier

Dawn Hoosier

Jul 12, 2018 "It has helped me to know what I need and need to do. I'm still writing down and coming up with all the reasons that I am opening this shelter, but this article has seemed to be very helpful."

Joan Glover Straughter

Joan Glover Straughter

Jul 23, 2020 "I am in my beginning stages so I do not have a success story just yet but someday I will. This information has pointed me in the right direction and I thank God for it and you!"

Quanny Brown

Quanny Brown

Jun 29, 2017 "It helped me a lot. All the information I need to know about open up my own shelter. With this help, now everything is going just right for me. Thanks again, God bless you all"   Rated this article:

Chela Isip

Chela Isip

Dec 1, 2018 "In the future, I will open up my dream house that will serve young women facing domestic abuse and/or teen pregnancy. This article is a total godsend. Thank you much."

M. Cooper

M. Cooper

Nov 10, 2017 "The details and steps provided were beneficial. If you're going into this business and have no idea where to start, these steps can point you in the right direction."

Angeliz Suren

Angeliz Suren

Jun 21, 2021 "I am interested in opening a shelter for homeless in Pinella's Park and I was looking for information on the topic, this information was very helpful, thank you."

Seda Simsek

Seda Simsek

Oct 22, 2017 "This was perfect step by step. I'm from Australia,  and you have made it really simple to implement the steps and alter them according to the country you're in."

Cel Martin

Cel Martin

Sep 14, 2016 "This has been a dream of mine.  I am going to follow the directions. I have already done a proposal, but reading this will change a few items in it.  Thank you."

Triy Spencer

Triy Spencer

Aug 27, 2017 "Told me the things I will need to do. I had no clue I will need a business license. Need to file the tax exempt on federal and state levels. "

Teddie King

Teddie King

Jul 3, 2017 "This article has been of immense help, showing me how to navigate through uncharted waters. You guys are doing a terrific job, keep it up!"

R.C. Miller

R.C. Miller

Sep 21, 2016 "A wealth of knowledge to help my passion to provide for the less fortunate or those that are transitioning back into society effectively."

Nadine Johnson

Nadine Johnson

Oct 28, 2021 "I really appreciate the assistance that you have provided me. I'm interested in starting up my own Non Profit Homeless Shelter for 2022."

Marlene Grewe

Marlene Grewe

Nov 24, 2016 "It helped with letting me know that there are a lot of steps and things you can easily overlook without the help of planning. Thank you."

Larietha Strong

Larietha Strong

Jun 6, 2016 "This article was very helpful in giving advice step by step! It allowed me to have insight on what I need and what to expect!"

Jovana Rome

Jovana Rome

Apr 18, 2016 "You helped me in a good way by letting me know more about my project and how to go about making good choices for the shelter."

Arthur Jones

Arthur Jones

Aug 10, 2016 "Just knowing that there is more than enough help in getting starting with the shelter is awesome. Thanks, and may God bless."

Malika Flowers

Malika Flowers

Aug 24, 2017 "I'd like to start a non-profit day shelter and this article gave me great ideas on how to get started and look for funding."   Rated this article:

Eric Walker

Eric Walker

Apr 11, 2016 "I actually want my own homeless shelter, just didn't know we're start. This article gave me some helpful tips, thank you."

Bridgette Jenkins

Bridgette Jenkins

Mar 30, 2016 "I'm a first-time business owner and I didn't know how to do the over cost. Learning this has helped me out a great deal."

Lisa Lowery

Lisa Lowery

Nov 16, 2017 "It was very helpful, so I took notes. Maybe some day I'll fulfill another problem of world that bothers me."   Rated this article:

Layla Salarosa

Layla Salarosa

Jul 7, 2016 "I want to help the homeless so I came to wikiHow so that I could look up up a nonprofit homeless shelter."

Kersonder Lyons

Kersonder Lyons

Jun 13, 2016 "This article helped me. My goal is to start a homeless shelter and to see that no child be left behind."     More reader stories Hide reader stories

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