If you're thinking about starting a nonprofit but aren't sure if you should or shouldn't, this episode will help you to decide. Starting a nonprofit is starting a business. If you think you will "get a grant " to start a nonprofit - then, No. You shouldn't start a nonprofit. If you have at least $25K to start your nonprofit, then yes, you should. If you're not sure when or why you should start a nonprofit check out this episode to learn if you should or shouldn't.

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Podcast Transcript

Speaker 1 (00:00):

Welcome to On Air with Amber Wynn, where nonprofit leaders learn to fuse passion and commitment with proven business strategies to create long-term funding impact and sustainability. And now here's your host and resident Philanthropreneur Amber Wynn.

Speaker 2 (00:22):

Hey fam, it's your girl, Amber Wynn, Philanthropreneur, and I'm excited to be in your space. Today's topic is, should I or shouldn't I? And we are going to talk about, if you're thinking about starting a nonprofit, should you, and for those of you who've already started your nonprofit, I want you to consider should you reenergize your organization or should you just go in a different direction? Now, people say to me, I've had my nonprofit for 15 years. I'm not just going to, I want you just to think about the impact that you're going to make in the community or the impact that you're not making in the community, right? Is it your ego? Is it that you've put in 10, 15 years and you're not going to just walk away from it? Because at the end of the day, life is short, y'all. We only have one life to live that we know.

Speaker 2 (01:19):

And while you're here, let's make a difference. So yeah, today we're going to talk about if you're thinking about starting a nonprofit, should you, and I'm going to give you all of the reasons why you should and all of the reasons why you shouldn't. But before I dive into it, let's pause for a minute and then when I come back, should I or shouldn't I? Most founders don't realize that they're more applicants than there is money. This fact impacts a nonprofit's fundability. Nonprofit founders should administer research on their competitors, determine if their community is oversaturated, and identify their competitive advantage before they start a nonprofit. Check out how to validate your nonprofit idea, a step-by-step guide on how to administer the research. You need to validate your idea before spending hundreds of hours and thousands of dollars only to struggle to fund it. Get your copy today.

Speaker 2 (02:14):

Welcome back to On Air with Amber Wynn, Philanthropreneur. Today's topic is, should I or shouldn't I? And listen, most people start their nonprofits because they are committed to their community. They want to make a change. They see a problem and they want to change it. But here's what I need for you to know. Passion is not enough. Most people, when they start their nonprofit, they think that they're just going to be doing that thing that gets them excited, whether that's outreach or program delivery. And I need you to know that starting and running and funding and sustaining a nonprofit is more than that. It is. It is actually running a business. And it's important that you understand that because those late nights when you're up writing those grants or when you're sitting in front of your staff having a conversation about something that you're like, really, because we need to be working and not dealing with that, it all comes with it, right?

Speaker 2 (03:15):

A nonprofit is a business. It's just a business with a philanthropic purpose. And so if you're thinking about starting a nonprofit or if you're in a nonprofit and you're stuck, it could be because you don't have all of the resources that you need to run an effective business, and that's what you need. You don't need a grant writer who's going to write you grants. That's not the solution. It's a part of the solution, but it's not the solution. And I think people miss that. People get their 501(c)(3) and they're like, okay, I need grants. No, what you need is to understand how to run a nonprofit business because I can sit here and I can write you grant after grant after grant, and it's not going to be enough. Why? Because you're going to blow through that money and you're not going to understand that there are rules attached to each element of running your organization.

Speaker 2 (04:08):

So let's just say I get you a million dollars a year. That's a good amount and it's restricted dollars. If you don't understand what restricted dollars mean, then you could potentially put your 501(c)(3) tax exempt status at risk. So you have a million dollars and you decide to spend money on this when the grant said that you could only spend it on that or you don't file with the three authorized agencies. And so you lose your tax exempt status. There are like 175,000 ways that you can mismanage funds or get your organization in jeopardy of losing its 501(c)(3) because you don't know what you don't know. So what I want you to understand going into this, because a lot of people don't tell you this. They just say, girl, you need to start you a nonprofit and get some grants to cover that. It's not that simple.

Speaker 2 (05:04):

It's not that simple, and it's not that easy if you don't have the skillset, if you don't have the knowledge, you're going to struggle. So if you're thinking about starting a nonprofit, I want you to change your mind and say, do I want to start a business, a for purpose business? Because if you understand that you're starting a business is the same as if you were to start a small business. You need to do the research. You need to validate your idea, you need to look at your competitors. Most importantly, you need to start with capital. You need to start with money. You need to know how you're going to bring the money in. And bringing the money in is not grants. Grants should only make up maybe 35% of your budget. And if you haven't figured out how you're going to make the rest of that amount, then you shouldn't be starting a nonprofit.

Speaker 2 (05:55):

And it brings me back to my original topic, which is if you don't know what you're doing, you're going to scramble, you're going to fumble, you're going to struggle. So if you're really serious about starting a nonprofit, then you should think about what it takes to run the organization. Founders jump in to starting a nonprofit without considering if their idea is even fundable. I can't tell you how many times I speak with clients and they never even consider that their idea may not be fundable because in their space there's a need. But what they're not looking at is the community. The community could be saturated with nonprofits and because there's nonprofits in the area, that reduces your ability to generate revenue if they're addressing the same issue and they could be addressing it a different way. But when funders look at your community or if they're funding somebody in your community, they're not going to fund other people to do the same thing.

Speaker 2 (06:56):

So you need to go through the process before you even start your nonprofit to determine whether or not your idea is fundable. And it may not be that it's not fundable, but it may be that you need to shift your focus right now, and I'm so happy to hear it. There's a lot of focus about young people being sex trafficked. And so you may have three organizations in your community that addresses that, but maybe there's a gap that you can fill, but you won't know that until you do the research to see what organizations are in your community, what is their area of focus and where can you fit in so that it makes sense? Don't just jump into it and say, I'm going to start this nonprofit because if your community is saturated, it's going to be a challenge for you to actually get funding.

Speaker 2 (07:47):

You need to learn what a nonprofit is, and you need to understand that it requires skills, knowledge so that you can run the organization long-term, not enough just to be good at whatever programs you're delivering. It's not enough to be good at outreach. You really need to manage people and have fundraising experience and be able to manage your board. And I can go on and on and on. So I want us to move from that place of you don't know what you don't know to a space of inquiry. I want you to really do some research to find out what it takes to run a successful nonprofit. I don't want you struggling. You can start a nonprofit and you can have this nonprofit, but will it be successful? I want you to be able to take care of you as you take care of your community. And so I can help you get there. You just need to have a big picture strategy. And so we're going to pause for a minute and we're going to talk about a product that can help you get to the end of that strategy. We're not going to start you with piecemealing things. We're going to get you from the beginning to the end. So let's pause and you can learn a little bit about 90 days to a profitable nonprofit.

Speaker 2 (09:04):

Are you struggling to fund your programs? Can't get a grant to save your life. Most consultants will share the what of how to start a nonprofit or how to fundraise. They may even share the why, but they don't share the how because that's where they make their money. Now, I'm not hating. I'm a businesswoman too, but I've been where you are trying to make the world a better place, struggling to keep the doors open up to the wee hours of the night writing grants and doing whatever needed to be done. And because I've walking your shoes, I'm not here to make you spend your will, waste your time or your hard earned money, we ain't got time for that. The world needs you. I'm here to show you how to transform that pit. You keep dumping your hard earned money into a profitable nonprofit. I take my 30 years of nonprofit experience as a founder, executive director, program developer, grant writer and funder, giving out over $7 million annually in grants, and I save you literally thousands of dollars in hundreds of hours.

Speaker 2 (10:09):

I walk you through setting up your nonprofit organization so that you can be generating enough revenue to cover your monthly expenses in just 90 days. How would that feel? Not paying bills from your personal bank account. I share my insider secret tips, tricks of the trade and provide you with a step-by-step roadmap on how to turn your bootstrap organization into a profitable nonprofit. Within six months. You could be generating enough revenue to pay your salary or fully fund your program. The choice is yours, but you have to get the blueprint, and it took me three years to develop it, but it's here and it's going to change your life. Join my other successful clients who are just like you, full of passion and determination, but they had no idea all that it takes to run and fund a successful nonprofit. Now they're winning grants and drawing a salary, and they know what it is that they're supposed to be doing to run a successful nonprofit.

Speaker 2 (11:11):

They're no longer making it up as they go. They have the roadmap and they're clear about next steps, and I want that for you too. So what do you get in this course? You'll walk away with knowledge, products, processes, and systems, not just a bunch of promises, but exactly what you need to turn your organization into a profitable nonprofit. I promise you don't need grants. What you need is a solid infrastructure, and this course is going to give you all of that and more. And what's more, it comes with the money back guarantee. So go ahead, click the link below to register for this course. Welcome back to On Air with Amber Wynn Philanthropreneur, I'm excited to be in your space. I'm excited to be here. Today's topic we've been talking about, should I or shouldn't I in terms of starting a nonprofit? And if you're going to start a nonprofit, you absolutely should, but you should do it coming from a place of knowledge.

Speaker 2 (12:11):

I want you to make informed decisions. Speaking of informed decisions, it's time for one of my favorite parts of the episode where you get to ask me your questions, ask Amber, because I get to give you the answers that you're really looking for. I can talk all day, y'all know that, but I really want to be helpful to you. And so you can reach out to me at any of my socials and ask me whatever questions you want. Today's question comes from Saiku, Saiku from Rancho Cucamonga, and this question was left for me on Facebook and it says, hi, Amber, this is Saiku from Rancho Cucamonga. I want to start a nonprofit. Well, actually, I need a building, but I don't know how to get grants to cover it. Can you give me some advice on how to get started? Hey, Saiku, let me start by saying purchasing a building is a business expense.

Speaker 2 (13:16):

So if you haven't even started a nonprofit, that's stage seven, I need you to go back to stage one. As a matter of fact, stage zero you're thinking about, so you are looking at a building so that you can deliver services. My question for you is how much does it cost to run this organization? You want to start because that's going to be the same question that every funder's going to ask you. I want you to go onto my website and download this document. It's called The Seven Stages of a Successful Nonprofit. It's how you stage your organization, and I want you to look at each one of those stages because if you started stage seven, you've missed the whole foundation, and so you're going to struggle. The goal is not to get a building. The goal is to set up a profitable nonprofit. That means you have to have the infrastructure.

Speaker 2 (14:15):

That means you've got to have all of your ducks in the row. So I want you to start with number one. Now, if you understand all that it takes to run a nonprofit and it's not having a building, beloved, it's about having programs. It's about having staff that's going to run those programs. The very last thing that you're going to be looking at funding is a building that is called a capital campaign. When you raise funds for a building, but before you can even qualify for funds, you need to have a track record. A funder's not going to write you a check for a building when they don't even know that your programs are successful. Think about this, whatever program it is you're going to start. There's a high likelihood that somebody's already delivering that. And if they've been delivering that and been getting funded, then they have a track record and they have a relationship with the funder.

Speaker 2 (15:07):

So that's what you've got to do. You've got to start by starting your nonprofit, right? Meaning do you have a sexy, inspiring, concise mission program, descriptions with measurable outcomes? Do you have an accurate budget? How much does it cost to run your organization? That's what an accurate budget tells you. Start with your budget, build out your programs, run your programs. Maybe go to the places where your target audience is, partner with organizations, get a track record. Then you want to build up your staff. And the very last thing you're going to do is get that building because that is a business expense. That is not something that funders are really looking to do. There are maybe 3% of funders out there who will support a capital campaign, but trust and believe a brand new nonprofit where it's just a concept is not going to qualify for that type of support.

Speaker 2 (16:07):

You've got to be established. You've got to have other funders that are coming in. They're not going to just give you money. You've got to say, Hey, I've raised 50%. We want you to match to get us to the end of the game. So it is a lot Saiku that comes with funding a building. And a building is not a nonprofit. A nonprofit is its own business entity. So just dive a little bit deeper into that and really just consider what it is that you want to do because maybe you can partner with somebody as opposed to starting this whole nonprofit because it doesn't seem like you want to start a nonprofit, but you want to run these programs out of this building, and maybe somebody's already there doing that, and you can step in as a coach, or you can step in as a, I don't know, a facilitator, but really just take your time.

Speaker 2 (16:57):

Remember, that's stage seven. If you're starting a nonprofit, you want to start exactly where you are so that you don't waste time and energy and have it all fall apart. So thank you, Saiku. That was Ask Amber. It's your opportunity to ask me any questions that you have, and I'm always available. Hit me up on any of my socials. Now is the time of the episode where I get to shine a light on you. Amazing nonprofit leaders, people in the field who are supporting our nonprofits. And last episode, we started our conversation with Tanika Doyle Chasing Seven Dreams, part two. We're going to go a little bit deeper so you can get to know all of the things that she's endured as an director. Listen, I've been in that space. So many people have been in that space, and we can learn from each other. So part two, with Chasing Seven Dreams,

Speaker 3 (18:08):

Definitely have to be dedicated. IT passion drives everything. I self-funded the organization when I first started, because when I received the 501(c)(3), I was like, oh, where do I get my grant? My first donation? And I didn't recognize or realize that you have to build a name for yourself in your community. You have to build the trust of the community, not just funders or businesses, but parents, whoever you were provided service to. So it took a couple of years. So self-funding, website, business cards, the business account, the day-to-Day, stuff that you need to run a business, but depending on Grants, foundational Grants, volunteers, I couldn't afford staff. I didn't have staff for the first seven years of the organization. So it was the board members and it was the volunteers putting in time to help run programs. And we only did so many programs throughout the year, maybe three or four, but we came together, I Self-funded and the smallest grant, smart and final $250. I was jumping up and down screaming, and then we branched out to the Lakers and Southwest and different pictures we can find on our social media or our website of who have funded Chasing Seven Dreams. So it started there.

Speaker 2 (19:41):

Welcome back. You're on air with Amber Wynn. We've spent some time with an amazing community leader. If you'd like to be highlighted on air with Amber Wynn, I'd love to feature you so that your community knows that you exist so that funders know that you exist so that potential collaborators know that you exist. So if you're interested in being featured on my Shine on nonprofit, hit me up on my socials or send me an email amber@amberwynn.net. At this time, we are going to wrap it up with a mindset minute, and I'm only going to take a minute, you guys, because at the end of the day, a lot of people want to do good. They want to do well. They want to support their community, and so they think that by starting a nonprofit, they can do that. But there's some people out there who want to start a nonprofit because they think it's an easier way to start a business.

Speaker 2 (20:40):

And I would say to you, it's harder to sustain a nonprofit than it is a for-profit business because you have to do more work. You have to set up the infrastructure, you have to have a strong board, you have to fundraise, you have to. There's so much more to running a nonprofit than just writing grants. So in this mindset minute, I want you just to think about in your heart what it is you're trying to do. If you're trying to make a difference in the community, and you really just want to make a difference in your community, and I'm not saying just lightly, but that is your ultimate goal. Think about leveraging your talent and your experience to help another organization who's already doing something that you want to do, helping them to strengthen their organization. Because every time another nonprofit starts, then they've got to build up, build out, and then make the impact.

Speaker 2 (21:40):

But we have nonprofits in our community already making the impact. Who would love to have your support? Who would love to have your energy, your talent, and you can commit as long as you want, and then you can walk away and you can come back and you can walk away. When you start a nonprofit, you are starting a business. So I want you to understand that. And then that should help you to answer the question, should I or shouldn't I? Because in your heart, you want to make a difference, but you don't necessarily want to start a whole new business. So you can do that. Check out my blog, Six Sexy Alternatives to Starting a nonprofit because you can make a difference, and it doesn't have to be starting a nonprofit. But if you start a nonprofit, I want you to start it the right way. And that's understanding that you're not just doing a program that's going to get all of these grants. You're not just doing a project that's going to happen and you walk away. It requires you running a business. That's my mindset minute. I'm looking forward to seeing you next week with new topics, new ideas. So until next week, I want you to take care of yourself, like you take care of your community.

Speaker 1 (22:54):

Thanks for listening. If you enjoy this episode, subscribe and leave a review on iTunes. Head over to www.amberwynn.net/podcast for the links and resources mentioned in today's podcast. See you next time.