Sexy Alternatives To Starting A Nonprofit
STAGE ONE
People look at me like I’m crazy when they ask “How do I start a nonprofit?” and I suggest that they consider alternatives instead of starting a nonprofit. They invariably ask if I’m trying to talk myself out of business.
No. I like being able to pay my bills.
But I didn’t get into this business to steer people down a path I know they’re not ready to navigate. I am just as happy when community leaders decide not to start a nonprofit after participating in one of my webinars or reading an e-book or an article I’ve written—as I am when a Founder decides to start a nonprofit after learning all that it takes to start and run it effectively. I am! Because now I know these individuals are making informed decisions.
I’ve met way too many Founders who started their nonprofits based on misinformation. My goal is to simply make sure our nonprofit leaders know all that it entails running a thriving organization. If a person understands that, then we’re good to go!
It takes a very special person to look at the facts and admit that they aren’t ready to commit to all that it takes to start and run a successful nonprofit. And because of that, and the fact that we still need that person to get involved and put their passion and expertise to work, I want to offer up some sexy alternatives to starting a nonprofit that I think will keep these amazing people actively engaged in their communities. I hope so anyway!
If you know you don’t have the skills, knowledge, and financial resources to start and sustain a nonprofit, or, if you are not able to accomplish the goals you thought you would be able to accomplish (take this quiz “The Skills Founders Need to Run a Successful Nonprofit” to see if your skills prepare you for the role) then you should consider the alternatives.
If you want to own a business
Start a for-profit business. You can form the business as a corporation, LLC, or sole proprietor and market your talent, product, or service. The money that you make will go directly to build your personal wealth.
With new business structures like the Benefit Corporation (or B Corp), it's possible—now more than ever—to create a business with a purpose-over-profit mission. Whether you create a product and launch a 1-for-1 strategy or hire individuals in need of a second chance, there are many ways to give back in a for-profit business, and you might even be able to partner with an existing nonprofit through a business you start. The benefits are you will own the company.
Become a volunteer
I strongly recommend that every Founder volunteer at a competing organization providing a similar service. It provides you with great insight into how your competitor runs their organization, especially if they are successful (What are they doing? How can you duplicate/improve? What type of systems do they have in place? Who are their funders? What makes them unique?). This will help you better define your unique competitive advantage. You may even find a board member, volunteer, or staff member there. You know they already support your cause. Maybe they have ideas that don’t work for that organization but would be a perfect home at yours.
As a volunteer, you can make a huge impact in an organization. Volunteers are committed and passionate and give their time in support of a cause. Just because an organization may do things differently than you would doesn’t mean they’re not open to new ideas. Maybe they never thought about it? Maybe you can suggest new programs and/or approaches. This way, you get to make a contribution without having to take on the responsibility of starting/running/sustaining an organization. Sometimes volunteers are asked to serve in key roles in the organization. Sometimes they become such a viable resource they are hired on as a paid staff member. The benefits are:
You can pick and choose as many causes/organizations as you want to support
Volunteer when it is convenient for your schedule
You won’t have the financial responsibility of funding an organization
Become a staff member
Apply for a key role in the organization. The best change comes from within. As a paid staff member you will have the opportunity to make a difference in delivering quality services, offering valuable feedback and input, and have the added bonus of working for an organization that aligns perfectly with your passion and goals.
The benefits are that you receive a steady paycheck to support a cause you’re passionate about. If you still have aspirations to start your own nonprofit, being an employee is a great way to learn about systems, processes, and the inner workings of a nonprofit organization. One day, you’ll serve as the chief executive officer; understanding what it feels like to be the employee you will one day lead is invaluable insider information.
Partner with an existing nonprofit
This may be perfect if you have an idea that's tangentially different from what another nonprofit is already doing. Partnering with a nonprofit that's already up and running may serve to enhance its program and give you an opportunity to make the difference you seek to make without taking on the financial responsibility of starting an organization.
If you find a nonprofit already doing what you hoped to do, contact them to see if you can partner on an idea or project or if they would fiscally sponsor your cause under their nonprofit umbrella.
The benefit: You can accept donations and apply for grants before being registered as a tax-exempt organization. Fiscal sponsorship is often used while a nonprofit gets organized, or it can be used for a single project. Fiscal sponsors cover a lot of the back-office expenditures you'll need as you set up shop.
Become a board member
I also strongly recommend that every Founder serve as a board member so that they have firsthand experience of what it takes to serve in a governance role of a nonprofit organization. As a board member, you have the opportunity to “help” raise funds in support of a cause you’re passionate about. Along with other board members, you “help” the Executive Director make an impact in the community.
The benefits: Working with a group of seasoned board members gives you insight into how board members raise money. It gives you access to networks. It also positions you for other opportunities (serving on other boards, chairing/sitting on committees for other organizations’ events) that you normally wouldn’t have access to. Serving as a board member is a great way to bolster your resume. It’s very prestigious, and—if you strategically select the organization—may get you access to prominent individuals you normally would not have access to.
Launch a community project
There are great ideas suitable for a project, rather than a formal organization that will exist after your goal has been accomplished. You can get a team together, work with your community or local government officials to make it happen, and can set up a time-constrained initiative to make a difference.
The benefit: You are able to organically test the market and an idea, and validate the need in your community or region.
Become a Peer-to-Peer Fundraiser
Organize the help of many people to aid the causes you care about. Do it all online and substantially increase your efforts by engaging other passionate people who want to give.
Peer-to-peer fundraising through social media is very popular, and most charities are happy to provide support for generous fundraisers. Set up a website or leverage one of the many peer-to-peer platforms already established, pick your cause(s), and get started. If you love social media, this would be an excellent choice.
The benefit: You are able to select which causes you want to support and work closely with friends, family and/or like-minded people to fundraise and support.
Form or Join a Giving Circle
Giving circles are rapidly becoming a popular way for individuals to channel and amplify their philanthropic impulses. Giving circles can be small and informal, something like a neighborly potluck, with a few people pooling their money and giving it to a chosen charity. Or they can be highly organized, require contributions of thousands of dollars and a commitment of many years.
The benefit: Whether informal or highly organized, giving circles allow donors to pool their contributions, achieving a greater impact. Plus, the hard work of researching organizations and figuring out where your donation can make the biggest bang seems a whole lot easier when shared with others.
Set up a Donor-Advised Fund
Even with relatively modest resources, you can set up a donor-advised fund. DAFs are mini-foundations but without the hassle. Donor-advised funds can be set up with as little as $5,000. You can then contribute to the charities of your choice through the fund. You can raise funds that go directly to your DAF fund and then distribute them to the causes you are passionate about. You can create a website that shows which organizations you support.
The benefit: You don’t need to start a brick-and-mortar organization to support a variety of organizations and causes, and you are totally in control of which organizations you support who are doing the work you like.
Volunteering, becoming a board member or paid staff at an organization offering similar services is also a great way to obtain hands-on experience. Experience is key for navigating the bumps and hurdles as a nonprofit leader. It’s great to do a test run in an environment where everything is not impacted by your decision-making. Consider volunteering with another organization especially if this is your very first experience with the nonprofit sector. You may gain valuable insights, meet potential staff and board members for your organization, and most importantly, get a taste of all that it takes to run your nonprofit before you jump in.
Philanthropy Without the Brick and Mortar
This shift in thinking takes a bit of time to adjust to. But if you believe one of these alternatives may be a better fit, here’s the way to start the process of becoming a brick-and-mortar-free philanthropist:
Much like starting a brick-and-mortar nonprofit, start with your values and passions.
Choose two to five issues, populations, or approaches. Leverage the research you’ve already done and weigh them against what the community needs and your ideas of how change happens.
Learn more about the areas you care about by talking with community leaders and doing more research. Refine your priorities.
Research which groups match your mission and learn more about them. Specifically, look at the leadership of the organization, its vision, budget, productivity, and partnerships.
Clarify what you want to accomplish with your charitable giving.
Think about your immediate and lifetime giving. How much do you want to give now or in the future? What will be your lifetime impact?
Consider becoming more involved as a volunteer, board member, or board committee member to learn more about the operations and whether or not they are truly a good fit.
Decide how you want to be involved with the organizations you fund. The best donors get involved with their causes by becoming volunteers or activists.
Decide what percentage of your giving you want to direct to each area of interest and the types of strategies you want to fund.
Think about your lifetime contributions and leadership through estate planning and conversation with your family about values and community needs.
Decide how you want to make your giving decisions. Will you go it alone or with others through a giving circle or a mastermind group (group of like-minded entrepreneurs)? If going the group route, discuss the big issues, and formulate a plan for giving. Maybe assign a charity to each group member to report back on. Allow the group to vote on the organizations that will go into the funding rotation. Develop a calendar and assign the frequency and amount of your disbursement, coordinating the group contributions around the distributions.
Life is about choices. That also applies to philanthropy. You can still make a huge impact in your community without starting a nonprofit. Some of the options listed offer activists and advocates more flexibility and freedom than a traditional brick-and-mortar nonprofit, and offer the same or maybe even better outcomes.