So You Want to Start a Non-Profit?

So you're an artist and you want to start an arts program in your neighborhood. That's great, but it takes a lot of legal paperwork to set up a nonprofit, and many requirements of operating a nonprofit take the founder far away from their areas of expertise. Unless you are willing to become a business owner, it might be better to find an agency whose work interests you and simply volunteer.

Is someone else already doing what you are proposing?

Clichés become cliché because they are repeated enough to become cliché. And the reason they're repeated so much is because they're usually true, as is the case with "reinventing the heel." If someone else is already doing what you want to then be sure there is something different -your approach, your service model, or your target population- that will enable you to stand apart from others.

Do you have the necessary management experience?

How are you with organizational development? Program development? Board management? Fiduciary responsibility? Fundraising? Staff supervision? It is imperative for anyone who wants to start their own agency to take courses and/or gain considerable professional experience to develop a general understanding of all the different aspects of nonprofit management.

Do you have startup revenue and a clear plan for financing your organization?

There are many misconceptions about grants among those outside the nonprofit sector. Contrary to popular belief, grants are not free money; they come with lots of strings attached. Moreover, the grant seeking process is extremely competitive and startups often have difficulty getting into the loop. Also, nonprofits are not much different than for-profit businesses in that any funder (or investor) will be looking to see some sort of monetary commitment from its founder and Board before it is willing to write a check.

Have you identified potential Board members?

Speaking of Board members, have you given any thought to who they might be? Serving on a Board of Directors is far from a figurehead position; it takes a considerable amount of know-how and resources. While Board members can come from any profession or walk of life, they do need to bring something to the table that will help your agency achieve its mission. Board has two major responsibilities: supervising the agency's Executive Director or CEO; and helping the organization raise funds. Any candidate for your Board should knowledgeable and connected enough to do both of those things. In these days of more stringent oversight of nonprofits, Board members must be extremely well versed not only in the agency's area of focus, but even more so in nonprofit operations as a whole.

Have you completed, started or even outlined a strategic plan?

The strategic plan is like a business plan for a non-profit. It articulates the organization's mission, purpose, goals and objectives; it assesses the agency's resources and charts a path for growth and development. It forecasts the agency's anticipated growth, both in the area of service and in its finances. Without one, the agency will fold before it even starts.

There are alternatives!

Lest I be accused of discouraging you to do good work in your community, there are other options. Starting a non-profit organization is a business venture that requires considerable paperwork, investment of time and money, and knowledge in a number of interconnected areas. For these reasons, it may not be for everyone. But there are other ways to

Volunteer

As mentioned above, volunteering can be very rewarding. The experience it brings can lead employment in the field, and is a great stepping stone for someone who is just learning about non-profit operations. Volunteers very often have the flexibility to set and maintain their own hours, can work in various departments or divisions of an agency, and in come cases may receive training and professional development.

Start an informal organization

Starting an unincorporated club or association or similar type of group can save lots of time and effort in the way of paperwork. The downside is that donations to informal groups may not be tax-deductible, and the group may not have structure to develop the credibility to receive significant funding.

Create a project or program under the auspice of another organization

If your goal is to do more than just tutor a child or help out a senior citizen, then you may want to pitch your idea to an existing organization that would act as a "fiscal conduit" for your project. This means they will pitch your project to one of their funders and, if it is approved, they will administer the grant for you. Which means that the funder will still receive the benefits of a tax-deductible donation, the organization will be able to enhance its services, and you will be able to run your project with a fraction the complicated regulatory, administrative, and legal requirements that come with having your own organization.