Thinking of starting a nonprofit organization? Don’t do it.
We get a lot of calls from well-intentioned individuals wanting to make a difference in the world. That’s great. We need more caring people making a difference. We don’t necessarily need another nonprofit organization to do so.
Consider this, there are currently over 1.5 million nonprofit organizations in the United States. To put that into perspective, the population of the United States is 300 million, so that’s more than one charity for every 300 people.
That means that if you have an idea for an organization, it probably already exists. So start by finding out. Do a Google search for your cause and see what shows up. You can also check CharityNavigator.org, which rates nonprofits in different ways, and GuideStar.org, which features information, including tax returns of nonprofits, so you can examine organizations in detail. After all, if other well-established organizations exist with a similar mission, then do you want to be competing against them for funding? And what chance do you really have?
Generally, our recommendation to people looking to start a nonprofit is not to do so, unless
- You have a very clearly defined mission that addresses a very specific problem and is unique, memorable, and inspirational.
- You have a specific, well-thought out means of addressing the problem, ostensibly, one this is unique as well.
- You have a strategic plan that addresses the goals and strategies for the organization.
- You have a method of funding that will sustain the organization for the long-term.
You’re Facing an Uphill Battle
Now consider the requirements to start a nonprofit — you need to have a board of directors, incorporate as a charity, register in every state in which you will be doing fundraising, and meet auditing and reporting requirements.
And then consider what is necessary to run the operation and make it successful — knowledge of the issue and how to address it better than it is currently being addressed, operations management of delivering services effectively and a means of measuring their effectiveness, attracting staff with the right skills, building a board of directors, managing volunteers, managing finances, having the right technology and donor systems in place, developing your brand and promoting the organization, and most of all, fundraising – because if you don’t have money, you don’t have an organization — you just have an idea.
The fact is, that 85% of all nonprofits never make it over $250,000 in annual revenue and have a difficult time sustaining their organizations. And in this recession, even the government is late in paying nonprofits the money they are owed. As a result, many organizations have folded or merged in recent years.
Put Your Passion into Action in Other Ways
If you are looking to do good in the world, that is very admirable and there are a number of things that you can do:
- Start by volunteering for a nonprofit organization to learn what it is like and learn about the specific issues.
- Serve on a board of directors to learn the responsibilities of running a nonprofit.
- Work for a nonprofit to get experience on the inside.
- Participate in mentoring, training, and partnership arrangements.
- You can also donate goods and services, help charities organize fundraising events, and spread the word.
- Also consider how a socially-responsible business or other format (such as galvanize other people around the cause) can address the issue.
Resources
To research nonprofits, visit:
To find a volunteering opportunity, visit:
To find out more about serving on a nonprofit board, visit:
