Five Tips and a Warning for Starting a Nonprofit
I recently came across this post from 2005 at Idealist.org, and the points it makes are just as valid today as they are when Putnam Barber originally wrote it. In a nutshell, here are his tips (along with my comments):
- All Nonprofits are Local. Since you are located somewhere, you will need to follow the rules and regulations in your local jurisdiction. As you expand and operate in other areas, you will also need to know and follow the rules and regulations there.
- Local Supporters are Necessary. Unlike some for-profit businesses, nonprofit organizations are not solo operations. You will need a core group of local supporters that are willing to volunteer, serve on your board of directors, and take other roles within the organization.
- Nonprofits can be—in fact, have to be—“businesslike.” Some people say “businesslike” as though that is a bad thing. Nothing could be more wrong. Nonprofits must adhere to the same principles of planning, organization, marketing, and financial management as for-profit businesses.
- Often not starting a nonprofit at all is the best way to serve. Be sure to do adequate research in the planning stage to determine if a new nonprofit is needed or if there is another way you can contribute to the causes you have a passion for.
- Plan for the Long Term. To be useful and successful, your new nonprofit must be prepared to sustain itself and its programs or services for the long term. This includes disaster planning, strategic planning, succession planning, and financial sustainablity.
Read the full post here along with links to more resources to assist you with each of these tips.
Starting a Nonprofit? Start Here. Go Far. LaunchX.com
Introducing: Third Sector Connector
Third Sector Connector (formerly Nonprofit Local) is a free-to-join website community that is dedicated to helping local nonprofits and NGOs connect with each other and with the consultants and other resources they need to thrive in their local communities.
They offer their members (sign up here):
- Daily tips to inspire nonprofit leaders
- An archive of their daily tips
- News from around the globe that is relevant to nonprofits and NGOs
- Member participation forumns on a variety of topics
- Messaging member-t0-member to continue the conversations
If you are in a leadership position in a local nonprofit or NGO, or are thinking of starting a nonprofit, check out Third Sector Connector!
Starting a Nonprofit? Start Here. Go Far. LaunchX.com
Monthly Giving is a Win-Win
Have you noticed that many information websites provide a monthly subscription service? Recurring subscriptions are a great money-maker for private businesses, and can be a great way to maintain a steady level of giving from your contributors, as well.
For the donor, monthly giving provides:
- A manageable amount added to a monthly budget that adds up to a large overall donation. $25 a month (less than a trip to a restaurant for a family of 4) turns into an annual donation of $300.
- A tangible action supporting a cause they believe in every month.
For the nonprofit monthly giving provides:
- A predictable, steady cash flow.
- An opportunity to thank their donors every month instead of just once a year.
- An opportunity to remind their donors of the great cause they are supporting every month.
If you don’t have an annual pledge, with a monthly giving option, then you should consider it for your nonprofit organization.
Starting a Nonprofit? Start Here. Go Far. LaunchX.com
Show Us Your Goodness Nominations Being Solicited
A competition for the most inspiring charity or nonprofit is being sponsored by Riceworks, makers of gourmet brown rice cracker snacks. There will be a total of 33 “winning” charities, with prizes ranging from $1,000 to $20,000. Read more in this article from Tonic.com and check out the official rules here.
Contests like these will not sustain your nonprofit organization, but they do provide some great benefits…even if you don’t win!
- Free Publicity — for the cost of preparing your application (usually just some time), you get nationwide exposure for your organization through the sponsors efforts to promote the contest and the voting process.
- Public Relations — use your entry as a press release to your local media, and, if you win, that gives you a second opportunity to toot your own horn.
- Volunteer Mobilization — when the contest includes voting by the general public, it is a great opportunity to mobilize your volunteers and social media channels to drive traffic to vote for you!
Starting a Nonprofit? Start Here. Go Far. LaunchX.com
The 80% Rule
It is a generally accepted rule that if a nonprofit organization spends 80% or more of every dollar raised on the programs, services, or products it provides to its constituents, that the organization is probably well-managed and a good choice for donations. How does your organization stack up?
Donors are always wise to research the nonprofit organizations that are asking for donations, and when there are high-profile cases of organizations not meeting the standard, such as the recent controversy over Yele Haiti, donors will be even more vigilant about investigating the financial performance of nonprofits. When you are starting a new nonprofit, transparency in financial management will be especially important in attracting new donors. Be sure you are complying with your state’s regulations for registration and disclosure.
Starting a Nonprofit? Start Here. Go Far. LaunchX.com
One Thing to Make a Difference
I was reading a newsletter the other day and came across this piece of advice for improving your business. “What can I and only I do, that if done well, will make a real difference in my buisness?” This advice is even more applicable to nonprofit organizations that rely so much on the vision and hard work of their founder, board, and execcutive directors. So ask yourself, what is the one thing that only you can do that will make a difference to your organization.
As you are thinking about this, you will undoubtedly think of many things that need to be done that will make a difference, but that others in your organization can handle. Write those things down and make the delegation assignments. Keep searching your list — you will find one (or more) ways to make a substantial improvement in some aspect of your organization today! Will it be fundraising? Networking with other nonprofits? Streamlining operations? Recruiting volunteers? Whatever that one thing is that you identify, make a plan and set a deadline to get it done!
Starting a Nonprofit? Start Here. Go Far. LaunchX.com
Need Donations? Recruit More Volunteers
In a study released by the Fidelity Charitable Gift Fund and VolunteerMatch, it was found that people who have volunteered in the past year contributed on average ten times the amount by non-volunteers. Two-thirds of those volunteers make their contributions to the same organization with which they volunteer. The message is simple — if you need more donations for your nonprofit organization, recruit more volunteers. The study also found that 28% of Americans have never volunteered at all — an vast untapped resource for your nonprofit!
Starting a Nonprofit? Start Here. Go Far. LaunchX.com
U.S. Government Resources for Nonprofits
Your tax dollars can work for you and your nonprofit organization. The U.S. Government has helpfully put together a directory of government resources for nonprofits. This list ranges from grants, loans and financial assistance, to management and operations and tax help. Don’t hesitate to take advantage of these resources.
Starting a Nonprofit? Start Here. Go Far. LaunchX.com
Eco Nonprofit? 1% For the Planet
This article from Tonic decribes a nonprofit, 1% For the Planet, that takes contributions from for-profit businesses and distributes it to 501(c)(3) ecological nonprofits. To date they have a budget of $30 million distributed to almost 2,000 organizations worldwide.
If you are an eco nonprofit, you can access the grant application here.
Starting a Nonprofit? Start Here. Go Far. LaunchX.com
Free webinar on audio and webconferencing resources
Are you looking for creative ways to reduce expenses and add more time to your busy day? On Thursday, January 28th, from 1-1:30pm EST, the Society for Nonprofit Organizations (SNPO) will be welcoming Lisa Kim for a free webinar and Q&A on the audio and web conferencing resources that are available to SNPO Members through their partnership with ReadyTalk.
This live event will explain how the service works, address how it can be effectively used within your organization, and give a peak at some new functionality for those who are already familiar with ReadyTalk. Registration is open to both members and nonmembers. To sign up, please visit their SNPO & ReadyTalk Registration page.
Starting a Nonprofit? Start Here. Go Far. LaunchX.com
