Starting a nonprofit is difficult, complex,hard work.
I am being kind when I say this.
Its takes vision, guts, a clear mission and a lot of hard work just to get it off the ground. Think marathon race or mountain climbing. Its like a serene lake that looks calm and relaxing on the top– but once you are in it-underneath has so many currents all pulling at you at once.
Going from vision to a sustainable and financially healthy nonprofit is not for the weak. Many start organizations, but very few do so without making major mistakes that cost them either time, money,supporters, donors or all of the above. Many worthwhile and needed programs ultimately fail because they were not put together well. When these organizations fail it is the community and clients that suffer. I did a quick survey with a group of founders who have created viable, strong organizations. These are folks doing great work every day, they are in the trenches. They all said the same thing: Passion is not enough.
They were kind enough to share their wisdom, here is their advice
- Is there a need for your organization? I always push people on this question. Is there a true need? Set your ego aside and really dig deep– is there a need for another organization. How many other folks are doing the same or a similar program in your community? Could you team up with another, existing nonprofit? Partnering is a great way to dip your feet in this sector, learn lessons from folks already in the trenches and leverage funds. Have you spoken with your clients about what they really need? What does that data say– not just your gut, but the hard statistics? Research, research, research. Do your research!!! Funders want to see data and you will need it to build it in to your case of support so you might as well understand this from day one. Once you get the data in front of you then ask yourself the most important question: Is a nonprofit the best business structure for your idea?
- It is harder to start a nonprofit than most people think. It is actually harder to start a nonprofit than a business. The process of incorporating at the state level and then going for exempt status with the IRS can be a tidal wave of detailed paperwork– and you will need a very good attorney. Looking back many founders wish they would have had more partners helping them instead of trying to do it all on their own. I actually just wrote a blog post about this last week. You can find that one here. Passion is not enough. Get realistic about what is involved and the time it takes to create a strong, healthy organization.
- Create a real, functioning board of directors–not one in name only. Boards can make or break your new nonprofit. You do not just need a board composed of your friends, sorority sisters and cousin chewy.Your first board members should be people who have resources, influence, and lots of other connections and contacts to help you move your mission forward. Your board can not just be friends and family. These folks should believe in your mission and join because they are passionate about it. They should be excited about sharing your mission with others and they should be educated about their responsibility as a board member. They should be able to do the hard work and make the hard decisions including doing work and fundraising. They should be able to open doors for you, share their skills with and help guide the executive director.You should have a real plan/ strategy for board recruitment, development and governance.
- Where will you get the money to start your organization? Many founders do not anticipate what it will cost to start their nonprofit– Please see the 1st nugget of advice in this post. You need money and resources before you ever serve a client or purchase a business card. Even more importantly every nonprofit startup needs a funding/ financing plan. You will have to decide if your services will be available for a fee or be free. You will have to figure out how to finance the work including your own salary. I have not even begun to talk about the accounting/ reporting systems that you will need to put in place once you do have funding. No realistic funding plan means that you will unlikely to be able to sustain yourself. Many nonprofits have closed their doors because of lack of planning. A nonprofit that has weak funding/development strategy at the beginning sometimes never recover.
I believe our highest calling is to dedicate our life to service. I hope these nuggets of wisdom from folks in the field are helpful and useful as you explore starting and operating a nonprofit.
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This is a great post, Desiree. But I’d add one thing: you need a real board, not a leverage board. You need a group who work together as one, to provide their collective wisdom and to keep the organization flourishing no matter who is running it. It’s the board that will hire that person to run the organization, too. They function in place of the owner, as the group with the long range vision and understanding of what the organization does.
You need the board to create the vision that will keep your organization moving towards its higher purpose, define the mission that will keep you going down the right road, and clarify the values that you hold important and that will guide every action your organization takes. Every policy decision and every strategic move will come out of those values.
Other people can fundraise, other people can network, but only the board can lead the board in shaping and defining its true north. I’d put those aspects of board leadership first, so you’re not just looking for a few people who function individually to leverage funds and connections. Otherwise, you have no true leadership.
Alexandra you are of course correct! I wanted people to think strategically about who they invite and what they need– it is not all about resources and contacts but at its core about guiding and governance. I just wrote a post last week about the importance of building an organization based on values.
Thanks so much for your valuable feedback– I so appreciate it.
Thanks, I really needed this. I’m hoping to launch in March, but I’ll push it back if I don’t have the basics lined up. I’m currently meeting with potential board members and trying to get all the pieces together, I had no idea that it would be this much work to simply try to help a struggling community.
I’ll be referring back to this article often.
So happy that the post was helpful. Its a lot of hard work, but so worth it if you put the foundational pieces in place first it will help in the long run. You may want to check out my 4 week tele-class which starts this month. You get to spend time with a professional fundraiser, nonprofit attorney, and board governance guru to help answer your questions and provide you with resources and tools. You can find more info on my website
http://desireeadaway.com/starting-and-operating-a-non-profit/
Good Luck!
Just starting out. Got a great cause which is Childhood Obesity. Running into many of the things you mentioned in the article. Would love to chat at some point 617-438-7084.
Hello!
Chicago is my home town!! You may want to check out my 4 week tele-class which starts this month. You get to spend time with a professional fundraiser, nonprofit attorney, and board governance guru to help answer your questions and provide you with resources and tools. You can find more info on my website
http://desireeadaway.com/starting-and-operating-a-non-profit/
Or You can jump on my calender for a quick 20 minute chat by hitting the link under “contacts”
I look forward to connecting soon!
Desiree, great insights. It is critical that non-profits are started for the right reasons and with the organizational leadership and operational foundations in place in order for the organization to be effective and sustainable.
I recently wrote a post, “Do some non-profits need to die?” http://wp.me/p27sTM-S to suggest 10 indications a non-profit organization has become dysfunctional and needs an overhaul or needs to fold.
Comments are always welcome.
Grant,
i just read your post and absolutely think that some orgs need to merge, re-organize or simply close their doors. Your post is spot on. We need to be strategic enough to ask ourselves hard question and bold enough to act. Even if that means stopping the way we work.
Desiree
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