HOW TO SUCCESSFULLY START A NEW NONPROFIT

15
June 2010


Can you imagine trying to start a new non-profit during a Recession?

In recent months, I have been fortunate to be engaged by a number of new nonprofits who have just received their 501(C) 3 certification and want to get their new creation off to a good start.

In these difficult financial times, when many established nonprofits are struggling for survival, it’s surprising that anyone would want to start a new agency. I am amazed and delighted by the enthusiasm and self-sacrifice of these founders, who have found a cause to which they want to devote their lives. That’s the enterprising drive of Americans, but in this case it’s directed not at making money but to leave their own personal legacy by helping others.

These groups that I worked with were established to:
• provide support services for a children’s hospital
• support an orphanage in Vietnam
• provide scholarships to a private school

Fortunately, they all recognize that while they may have the passion and commitment, they really did not know how to develop a board, raise money, or organize volunteers. They all brought in significant life and professional experience, but did not know how to apply this to this all-volunteer organization.

My approach
I have been able to spend about 90 days with them and their small group of supporters to create a viable Board of Directors, committees and task forces, create a simple strategic plan with a business plan, and a Case for Giving to begin to raise money.

How do I do it?: I try to use the language and tools which they brought from the private sector, and transfer these skills to board organization and fundraising. They were able to create functional structures:
• to manage an all-volunteer organization,
• understand that fundraising was not about asking for money but creating opportunities to give,
• and the need to create sustainable annual income if they were to survive.

The experiences have been amazing! Using the energy and commitment of any new startup, we have shifted the focus from just providing services to creating an infrastructure that will sustain the organization once the initial energy has abated.

Success:
They will enter Years Two and Three with a significant group of leaders who:
• understand their Mission and share their Vision;
• know how to effectively utilize volunteers,
• and have begun attracting donors and others who can provide pro-bono services.
Now they can concentrate on growing their program.

Grants:
One of the greatest challenges is to help them understand that they can’t build their initial income on grants, which are increasingly difficult to get. They must create the dreams which individuals can get excited and would be willing to support.

Larger boards:
Quickly grow their board from the original handful to at least 15 people so they can tap into the resources of a larger cross-section of the community. By making their Board meetings inspirational, educational and strategic, they have learned to leave the work of the Board to committees and task forces.

As one new board member said, “all this is just common sense, but we needed someone to point it out to us.”

Building for the Future:
Knowing that the rate of survival for nonprofits is about the same as any new small business, not very good, they are building a base for the future. Now their legacy can survive the founder. After all, every nonprofit, from Goodwill Industries to the Salvation Army, started with the efforts of one person who attracted more and more people to his cause. Now look at them!

Maybe someday these agencies will also become very recognizable names. They are off to a good start.

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