What to remember when starting a nonprofit
You have a passion, a calling, and a real desire to make a difference. It’s been milling around in your mind for some time, and you’ve decided to take action. The excitement of this new contribution leaves you inspired, knowing this is your chance to make a real impact; but have you thought about all those nitty-gritty details and what it really means to operate a nonprofit?
1. You don’t own your nonprofit.
Yes, we said operate – because you don’t own your nonprofit. You will have a board of governors or board of directors that will oversee the organization’s efforts including governance, fundraising, and engagement. Together, those involved set forth a path for the nonprofit to accomplish its mission.
2. Careful budgeting and robust fundraising are a collective responsibility.
Your nonprofit needs funding to operate beyond just addressing the need for which it was created. Although volunteers can offset some administrative costs, you’ll need to think about things like paying for internal audits and tax preparation on the financial end, and planning and conducting events that bring awareness to the cause. The operating budget has many more line items such as insurance, office space, and so on – and we haven’t even considered the material costs of what is being provided to the community that’s being served.
Whether it’s a healthcare nonprofit, service for children or animals, educational services, dealing with food insecurity or any number of other causes, you’ll have expenses just as you would for a for-profit business. The fundraising not only needs to cover those costs but to be able to put money aside for future endeavors.
It is crucial that a nonprofit connect with its community leaders and philanthropists to help the organization meet its goals. Grants are another area of fundraising. The nonprofit needs experienced grant writers to apply for and obtain those much-needed funds. Therefore, much thought and clarity in this regard is needed before the organization is even formed.
3. Selling Your Nonprofit Vision.
If you have issues with obtaining sales with a for-profit, the same will be true for your nonprofit. As far removed as the concept of “sales” seems for a nonprofit, the organization truly does need to sell its mission to fundraisers, as well as the entire community. Concentrating on doing the “helping” without a proper financial structure will severely limit the organization’s reach.
The Board and entire team of the organization must be able to concisely promote the organization’s mission. Everyone associated should be able to give a succinct message about the nonprofit’s purpose and facilitate meaningful conversation on a deeper level to develop connections. Just as in a for-profit business, a nonprofit needs to sell itself on the excellent work it’s providing.
If you’ve ever worked in the promotion or selling of a for-profit business and struggled in this area, you’ll need to strengthen that skill. Don’t assume that prospective partners automatically know what the organization stands for. Be prepared to engage others not in a typical salesy way, but rather by bringing awareness and impact.
4. Moving ahead and upward with integrity.
Along with all the other mechanical aspects of managing a nonprofit, there will be the more human side of emotions. There will be doubters. There will be others who feel there are more important causes than yours. There will always be critics of what you do and how you do it, but staying true to the mission and moving with integrity is paramount for your nonprofit to grow and sustain.
On those difficult days when it feels as though you’re unsuccessful, what will sustain you is the mission you believed in from the start. That mission is your North Star – your guidance and principles that you must never lose sight of.
When a nonprofit puts integrity first and consistently operates with the best intentions, it becomes known for doing valuable work that results in a spark of inspiration. The mission should always surround you, and by consistently moving in that direction, you will continue to grow a vibrant nonprofit that serves its community well.
Starting and operating a nonprofit is a noble thing to do. However, before you begin the journey, we hope you take a moment to reflect on all the hard work that goes into this endeavor and make sure you are truly committed.