Many good people want to start nonprofits. They usually have
great passion for their cause, and want to solve problems. They expect smooth
seas and clear sailing on the way to their destination. Unfortunately, they
often run aground on the rocks of reality. Here are some common pitfalls
associated with starting a nonprofit.
1. You haven't
developed a support network.
Nonprofits don't function well as one-man (or woman)
shows. Start by identifying supporters, and hold a well-publicized
informational meeting or two to assess the interest in your nonprofit. These
folks will be your potential board members, donors and volunteers and the
meetings may generate immediate financial support.
2. You think your
organization is the only one that can address the problem you want to solve.
It is unlikely that no one else has seen the problem you are
seeing. Don't re-invent the wheel. Check for nonprofits in your area that are
addressing the same issues, especially those that are currently receiving
funding. There is a good chance that you may find not only kindred spirits, but
organizations that are already dealing effectively with the issues that you can
join. If no one else is in the arena, there is probably a good reason why they
aren't.
3. You believe it is
easy to get money to support the organization.
You may be willing to invest every dime you have in your
organization, but the world of nonprofit funding is competitive and notoriously
difficult to access for fledgling organizations, particularly for day-to-day
expenses. Only about 20% of nonprofit support nationwide comes from grants and
unrestricted donations. The other 80% is
up to you to figure out.
4. You haven't
researched the skills needed to operate the organization.
The mission is important, but it takes real-world business
skills to achieve success and longevity. There are serious legal, financial and
administrative aspects involved in being a nonprofit. If you don't have all the
skills needed, you will need to attract or hire people that can fill in the
blanks.
5. You are easily
frustrated when things don't immediately go your way.
Growing a viable nonprofit is often arduous, expensive, frustrating and
time-consuming. Starting a nonprofit is not the place to find instant
gratification.
6. You think it will
be an easy way to create a paying job for yourself.
Founders usually form part of the board of directors, since
their goal is (or should be) to guide and expand the organization. Board
members normally don't and can't receive a salary for serving on the board. If you can
accept being an employee of the nonprofit as the CEO or executive director and understand
the potential risks associated with that, there may be income potential, but it
isn't a sure thing.
7. You don't have a
coherent plan for long-term success.
You may know what you want to accomplish, but you need to
have a way to get there. The time you spend on a five-year plan now will save
you innumerable wasted and expensive hours spent in crisis management later.
Knowledge really is power. Know what you are getting
yourself into before you start. For more in-depth insight into the realities of
starting a nonprofit, I offer a free whitepaper, "Climbing the Ladder to Nonprofit
Success". Request your copy at granthelp@ida.net.
If you need assistance in implementing
or understanding any of the steps, or
just have a comment, drop me a line. Want to know more about my services? You
can view my website here.
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