Starting a shelter is a selfless act of human service that can make a profound impact on your community. These homeless shelters help individuals in transitioning from temporary to permanent housing.
This blog provides step-by-step instructions on how to start a 501(c)(3) nonprofit homeless shelter. Find out all you need to know about startup costs, operational costs, obtaining and filing necessary legal documents, and acquiring funding.
8 steps to starting a nonprofit homeless shelter
- Decide on the type of homeless shelter
- Find the right location
- Write a mission statement
- Build community relations with local government agencies
- Develop programs and services
- Get your paperwork in order
- Secure funding and resources
- Apply for government grants
Why start a homeless shelter?
More than half a million Americans are homeless, and this number is expected to rise in the coming years, which indicates a growing need for homeless shelters across the country.
Building a shelter offers a safe place for homeless individuals and families who have nowhere else to go. It means giving people a chance to rebuild their lives and providing them with temporary accommodation.
By providing basic levels of health and safety, you play a significant role in helping people transition from homelessness to stability.
How to open a nonprofit homeless shelter
1. Decide on the type of homeless shelter
Homeless shelters often focus on specific groups to provide targeted support and address the unique challenges faced by different populations. This specialized approach allows for more effective and tailored support services to groups such as:
- Families
These shelters cater to parents and children, providing a safe environment with family-oriented services, which may include on-site childcare, tutoring, after-school programs, and prenatal care, addressing the unique challenges faced by homeless families.
- Veterans
Focused on those who've served in the military, these shelters offer tailored support for veterans. Services often include job training, mental health assistance, and resources to help with the transition to civilian life, addressing the specific needs of this population.
- Youth
Aimed at young people without stable housing, these shelters create safe spaces with an emphasis on education and career development. Programs typically focus on life skills, continuing education, and job readiness to help the youth build independent futures.
- Women and children
These shelters specialize in supporting women, often with children, who are experiencing homelessness. Services may include childcare, domestic violence support, job training, and health services, providing a comprehensive approach to help women regain stability.
Other homeless shelters may focus on individuals with specific challenges, such as mental illness, former inmates, or those battling substance abuse. These facilities offer targeted services like mental health treatment, addiction recovery programs, and reintegration support.
2. Find the right location
When searching for a location for your homeless shelter, start by kindly requesting local communities and community groups to donate buildings. This will significantly reduce your financial burden.
Alternatively, nonprofits find locations by:
- Contacting the owner of an abandoned building
- Reaching out to religious institutions to discuss their willingness to provide spaces
- Using social media and other outlets to gain leads on available properties
A major part of finding a location is the cost of the property. It should be within your budget for purchase or rent. The location you choose should be close to public transportation and essential social services such as hospitals, schools, and employment centers. Proximity to urban development makes it easier for residents to access what they need.
Check with local authorities to ensure the property is zoned for use as a shelter to avoid unnecessary legal issues.
Create a rapport with local community organizations. Schedule meetings with them to explain your mission and address any concerns. Good community relationships will help you raise more funds for the shelter.
3. Write a mission statement
Your mission statement defines your purpose and outlines what you aim to achieve with your homeless shelter.
A good mission statement includes the services you offer. These might be generic transition assistance for housing or food banks or niche-specific services.
Here is an example of a mission statement:
“Our mission is to offer a safe, caring place for homeless families. We provide shelter, service delivery, support, and resources to help them find stability and independence. We focus on each resident's needs, creating a community of respect and hope. Through housing help, healthcare, education, and job support, we empower families to rebuild their lives. Join us, and together, we can create brighter futures for those in need.”
4. Build community relations with local government agencies
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Establish a coalition with local government agencies and receive advice from other organizations offering similar services. These will help you avoid mistakes and scale your shelter.
Consider these tips when building community relations:
- Collaborate with an emergency food pantry to donate food to shelter residents
- Reach out to other charities that have similar goals to obtain sponsorships
- Request donations of furniture, kitchen supplies, or hygiene products from local organizations and community members
- Collaborate with a broader community, such as civic organizations and educational institutions, to organize fundraising events
5. Develop programs and services for your homeless shelter
Depending on the type of shelter you choose, create programs and services that provide a compassionate, human touch. Here are key areas to consider:
- Basic needs services
Ensure immediate comfort and dignity by providing essential health and human services. This includes nutritious meals, clean clothing distribution, access to showers and hygiene facilities, and safe emergency shelter. These fundamentals create a foundation for stability and recovery.
- Case management
Offer personalized support through dedicated case managers who can assess individual needs, coordinate access to healthcare, assist with job training opportunities, and guide residents through the process of securing permanent housing. This tailored approach helps address unique challenges.
- Healthcare services
Partner with local healthcare providers and foundations to offer comprehensive care. This can include regular medical check-ups, dental services, mental health counseling, and substance abuse treatment. Addressing health concerns is crucial for overall well-being and stability.
- Employment and education programs
Empower residents with skills for self-sufficiency. Provide job training workshops, resume-building assistance, and connections to local employers. Offer GED classes or tutoring to support educational goals. These programs build confidence and create pathways out of homelessness.
- Supportive services
Address underlying issues that contribute to homelessness. Offer addiction recovery programs, legal aid for navigating the justice system, and support for family reunification when appropriate. These services tackle root causes and promote long-term stability.
6. Get your paperwork in order
Homeless shelters typically operate as nonprofit organizations, which allows them to benefit from tax-exempt status. To qualify, shelters must register as 501(c)(3) organizations under the Internal Revenue Service (IRS) tax code.
You can register by simply filling out Form 1023 which collects detailed information about your shelter’s structure, governance, financials, and other necessary activities.
In some states, homeless shelters are not required by law to register for tax exemption. You must check with local authorities within your location to confirm.
Other necessary paperwork to get in order includes:
- A business license and financial statements
- Zoning permits and health department approvals
- Resident intake and consent forms
- Insurance policies, certificates of incorporation, and donor receipts
- Copies of grant funding and acceptance letters
- EIN (Employer Identification Number) from the Federal Government
7. Secure funding and resources
Most homeless shelters operate on tight budgets, often facing shortages in essential equipment and supplies. The chosen facility may need significant upgrades, including bedding, linens, shower essentials, kitchen equipment, and food supplies.
Securing specific funding for these necessities is crucial to provide adequate care for shelter residents. Some common fundraising ideas you should consider are:
- Grant writing: Apply for local, state, and federal grants specifically aimed at homeless services
- Community fundraising events: Organize walks, dinners, or concerts to raise awareness and funds
- Corporate partnerships: Collaborate with local businesses for ongoing financial support or in-kind donations
- Individual giving campaigns: Develop a donor base through direct mail, email, and social media outreach
8. Apply for government grants
Government grants are a crucial funding source for homeless shelters. Start by researching federal opportunities through grants.gov, which lists various programs from agencies like HUD and SAMHSA.
State and local governments also offer grant programs, so check with your state's housing department and local community development offices.
When applying, carefully read eligibility requirements and align your shelter's mission with the grant's objectives. Craft a compelling narrative that demonstrates your shelter's impact and how the funds will be used effectively. Include detailed budgets, timelines, and measurable outcomes in your proposal.
Remember that government grants often require extensive reporting and compliance. Be prepared to track expenses meticulously and provide regular updates on your shelter's performance.
Consider partnering with experienced grant writers or nonprofit consultants to strengthen your applications and increase your chances of success.
Persistence is key – many shelters apply for multiple grants annually to diversify their funding sources and maintain stable operations.
Concluding thoughts on how to start a nonprofit homeless shelter
Starting a nonprofit homeless shelter requires dedication and perseverance, but the potential to change lives and strengthen communities makes it worthwhile. Every new shelter has the potential to transform lives, providing essential support and hope to those in need.
With Zeffy, you can incorporate your nonprofit at no cost. The platform not only covers all the administrative fees associated with incorporation but also provides valuable tools to simplify your fundraising efforts.
When you incorporate with us, you benefit from our donor management, online peer-to-peer campaigns, and auction features as well.
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