New nonprofits are being formed for all sorts of purposes all over and at the fastest rate in history. If you are also thinking to start a nonprofit, here are some crucial things to think about.
All nonprofits are local. If you’re looking for information about how to start a non-profit, be aware there are complicated rules that differ greatly from place to place. What you may want to do is to register with the local government agency that handles new “nongovernmental organizations” in the community where your organization will operate.
Local supporters are necessary. No one starts a nonprofit alone. No nonprofit operates in isolation. All outside funders – foundations, government agencies, corporate contributors, major donors – will want to see evidence that the community is involved in, and supports, the plan for the new organization.
So, the first thing before starting a nonprofit is to identify the circles of friends who know your work and develop a strategy for earning income from people who can help pay for the services they receive.
There are a lot of different ways nonprofits raise money. For further information we recommend the seminar Nonprofit Finances and Management.
Nonprofits must be run “businesslike.” That means keeping good records, watching revenues and expenditures carefully, and being committed to thoughtful planning about when and how to grow. It’s the only way to show dedication to the community and to the people and causes being served. Without financial and service records, it is impossible to provide the community and other stakeholders with reliable information about the scope and value of the organization’s work.
For an introduction to these questions, take our seminar called Intro to Nonprofit Management.
Maybe you didn’t think of that, but sometimes not starting a nonprofit at all is the best way to serve. Many nonprofits are already hard at work. Finding a way to extend and support the work already being done may well yield greater benefit more quickly and at lower cost. The details will be different, of course, but spending time thinking about alternative paths toward the goal is an essential part of the planning for any new organization.
So, sometimes the best idea is to find an organization whose work you admire and volunteer to help extend it.
Plan for the long term. If your goal is to do something that can be done quickly, that’s all the more reason to avoid creating a new organization (see Tip #4). Providing a permanent service or tackling a big problem, though, will require an organization that can be sustained for years, even generations. It’s essential to have a clear plan for how the work will be carried on once the initial enthusiasms, and founding organizers, are no longer on the scene. This plan must include both solutions to governance questions (Who will be on the board? Who will lead the staff?) and management issues like where the money will come from and how new services will be designed and implemented. Answering the question, “But what would happen if you were hit by a bus?” isn’t fun, but it’s really necessary. More details and help with that in our seminars Succession Planning: Who Will Lead? and Strategic Planning for Nonprofits.
Sample forms, templates and ToDo lists:
Startup Nuts and Bolts.
Clear mission statements and good strategic planning are the foundation for long-term success. There’s advice about these topics at What should a mission statement say? and the seminar Executive Transitions: Crisis or Opportunity?
Nonprofits are subject to regulation, scrutiny, and sometimes even hostility. Most nonprofits accomplished great things, bringing people working together to solve problems and meet community needs. But rivalries, suspicions, and limited resources caused many to fail. After the initial difficulties have passed there are further challenges involved in keeping an organization going. Even under the most favorable conditions nonprofit leaders are often discouraged by how much of their energy is drawn away into the tasks necessary for running an organization, dealing with external pressures and demands. Keep in mind – there are no general sources of assistance for that work and no guarantees of success.
The decision to found a nonprofit organization is not one to take lightly.
If you do decide to proceed, we hope you will find these resources helpful. You’re invited to take our seminars and we’ll always be only a phone call or email away from lending out hard-earned expertise to help you further. Good luck from all of us at ANG-MCC!