If you got into this thinking grant money was waiting for you. If you thought it would be easy (not a Real business). If you thought you could just make stuff up and get funded. You picked the wrong business! Running a PROFITABLE nonprofit takes more work than running a for-profit business. Learn all it takes to be successful as a nonprofit organization. Save time, money, and get the real deal about running a nonprofit.

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🔦 NONPROFIT SPOTLIGHT 🙌🏿

Compton Girls Club Pt. 4

👉🏿https://comptongirls.club/

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🚀 RESOURCES TO HELP YOU RUN A SUCCESSFUL NONPROFIT

How to Price Your Programs for Profit https://drive.google.com/file/d/1KFSdb0sxNMHimH4U6NT3BohVjFBg08x_/view?usp=drive_link

90 Days to a Profitable Nonprofit https://drive.google.com/file/d/1ofgeHJ2CTVS0t8STMiNqfveaVpWfaK7o/view?usp=sharing

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Learn more about my success with helping nonprofits

Visit My Website👇🏿👇🏿👇🏿

http://www.amberwynn.net

CONNECT WITH AMBER:

Follow me on Facebook 👇🏿👇🏿👇🏿

https://www.facebook.com/amberwynnphilanthrepreneur

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Listen to my Podcast! 👇🏿👇🏿👇🏿

Spotify: https://open.spotify.com/show/4G9QNaVAYz8eXTmz48gagl

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Got Questions? "Ask Amber" on any of my social media platforms or email me at amber@amberwynn.net

Podcast Transcript

Speaker 1 (00:01):

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, Philanthrepreneur Amber Wynn.

Speaker 2 (00:21):

Hey, I love that beat. Welcome to On Air with Amber Wynn. It's your girl, Amber Wynn. Philanthrepreneur in the house today I decided to tackle a question that I get quite often. Amber, are you a nonprofit? I am not. No. No. I am a nonprofit consultant, but my business structure is a corporation. I am all for profit and today I'm going to take on the topic of running a nonprofit business Ain't for the faint of heart. That's what we are going to talk about today. Why running a nonprofit really requires a lot of energy, really requires a lot of effort, and you know what? Your girl has over 30 years of experience like I know nonprofits up and I know nonprofits down, but I made the conscious decision of not being a nonprofit, of not functioning in this space as a nonprofit. I have a nonprofit, I keep it active, but I do not work under my nonprofit status.

(01:32):

Why? Because running a nonprofit is a lot of work, and at this stage in my life, I'm not trying to work that hard. Now, don't get it twisted. Being a small business requires a lot of time and effort. In my opinion, running a nonprofit is probably three times that amount of work. So I choose the poison that I know and I choose to work as a for-profit, and I think that's important for people to understand, especially for those of you thinking about starting a nonprofit. If you think starting a nonprofit is going to be easy, I would say to you, nuh, no ma'am. No sir. Running a nonprofit is hard work number one, because it's a business. Then number two, it is a public charity. So you've got both of those to work with. Amber Wynn, nonprofit Consulting Services is just a business. So I've made the conscious decision to function as a corporation. So I want to dive a little bit deeper into that when we come back. Why running a nonprofit business ain't for the faint of heart when we come back?

Speaker 3 (02:48):

Not sure how to price your programs or how to cover salaries. Are you scared to increase your program fees? If you're struggling to fully cover the cost of running your program, then you need how to price your programs for profit. This workbook provides step-by-step instructions for how to develop programs funders love to fund, determine the cost to charge for your programs and present salary costs in a way that funders will approve. Learn the secret formula I use as an executive director for how to fully cover program costs. Order your copy today.

Speaker 2 (03:21):

Welcome back to On Air with Amber Wynn. Today we're talking about running a nonprofit business and how it ain't for the faint of heart. Listen, I've been in this space for 30 years. I've done everything from emptying the trash to giving out $7 million annually for grants, and I'm asked this question all the time. So you're a nonprofit, and my answer quickly is no, I'm not. I'm a for-profit. My business structure is a corporation, and I made that decision in 2017 and I made it with the clear conscience because I know all that it takes to run a nonprofit, and this is one of the reasons why I function in the role that I function, right? When I was an executive director, I wish I had an Amber. I wish I had someone who, number one is honest with me. Number two, understands my struggle. Number three is all about me and my success.

(04:10):

I'm all about the founder and executive director. I support boards and I do all of that stuff, but my primary focus and function is to support the most amazing person on the planet, which would be the nonprofit founder and executive director. So with that, I just wanted to just spend a little time for those of you who are thinking about going into the nonprofit space. When I say it ain't for the faint of heart, I'm saying to you that it takes a lot to run a nonprofit. Yes, it takes passion. Yes, it takes commitment, but it also takes capital. If you're thinking about starting a nonprofit, if you have no money, you should not start that nonprofit because you're starting off in struggle mode. You should start off understanding what the IRS says a nonprofit is and how it's supposed to be run and starting off with at least $25,000 because other than that, you are going to be struggling. And when you start off in struggle mode, it's not that you can't get out of it, it's just that it's challenging. So understanding what it means to be a public charity,

(05:19):

That one's important because if you think, oh, I'm going to start a nonprofit because I don't want my participants to have to pay because they can't afford it, that means you're going to get the grant to cover that. Well in that grant, only 10%. Generally speaking, industry standard is 25, but generally speaking, if you're getting a foundation grant, only 10% of that grant can go to cover salaries. So if you only get a grant for $25,000, guess what? 2,500 of those dollars can go for your salary. That's not enough for anything. $2,500 that goes like that when it comes to salaries, that's probably one, two weeks of a person's salary. So how many grants would you have to get just for you to survive? And if you're not a grant writer, you got to learn how to write a grant. Doesn't mean it's going to be funded. If you pay for a grant writer, that's two $3,000 just to get a grant. So these are the reasons why I decided not to function as a nonprofit, why I decided to support my community as a for-profit.

(06:27):

The IRS has said that your governing entity, your board of directors, is responsible for running the organization and not the day-to-day operations. That's the executive director, but it's responsible for the oversight for the ethical running of the organization. For fundraising. If I had decided to continue with my nonprofit, that would've meant that the decisions that I make as the executive director needs to be proved by the board, meaning the vision that I set for the contracts that I enter into because the board is responsible for making sure that the organization runs ethically. The executive director is responsible for the day-to-day, then I would've had to diversify my funding streams. I do that as a corporation, yes, but as a nonprofit, I have to engage with my board to diversify our funding streams. So in partnership, as an executive director, I'm working with my board to diversify my funding streams.

(07:28):

I'm saying all this to say it's triple the work. As a consultant, I determine the vision for my company, which I've had to shift multiple times depending on what's going on in the country, depending on what's going on in the landscape of the nonprofit sector, but I'd rather just get a contract, pay your girl. I support my people. Simple. Well, it's not simple, but there's not these other layers that you have to go through as a nonprofit. The other thing is I've made the decision that I can make the impact in my community, the nonprofit community without having staff, without having departments, been there, done that, got the T-shirt. As a matter of fact, I got the earrings to match the T-shirt. It's just not the space that I want to be in. That may not be the case for other people. You may want to have an organization that has paid staff and eventually you're going to need an HR department and you're going to need a marketing department.

(08:31):

I just subcontract all of that out to consultants, to independent contractors, somebody who's going to manage my marketing, somebody who's going to deal with my technology. I'm saying all of this to say to people, don't let anyone talk you into starting a nonprofit. Don't let them say to you, oh, you need to start a nonprofit so you can get a grant that's going to cover that. It's not that simple. You can make a difference in your community. If you are already an established LLC or for-profit company, it would be less work for you to find nonprofits that align with your mission than it would be for you to start a nonprofit and try to fund it. I'll give you an example. I had an individual, he had a trucking company, and he was like, yeah, I wanted to start this nonprofit so that I can help these young men who's been incarcerated to be their own individuals and teach them how to drive trucks and amazing.

(09:38):

You don't have to start a nonprofit. You are already running your business. What you need to do is either go get vendorized, meaning you go to the government agency, sign up, go through all of the paperwork to become a vendor, and then you partner with the Workforce Development Agency on getting a contract. So they're going to train these individuals on soft skills and how to interview, whatever, whatever, and then you would be one of those pipelines. So you would get the contract to then teach these individuals how to run or how to drive a truck. So now you're still positively impacting that community. You haven't started a whole nonprofit where you have all of these layers where you have to talk to your board, where you have to do all of this fundraising, you're running a business, but now you have a contract whereby you get paid to do what it is you wanted to do.

(10:33):

Anyway, the answer is not always to start a nonprofit. As a matter of fact, I would say the answer is probably not to start a nonprofit. If you are also committed to making a difference in your community, there are way more things that you can do than start a nonprofit. But if you already have a for-profit, let's just say you do group homes, people are like, oh, yeah, I want to get a nonprofit so I can get grants. Check out grants.gov of what you could do is get you a SAM number. It is a unique number for your organization. You're going to spend 45 minutes on this website answering all of this information because they're going to verify you as being qualified to get government grants, and you're going to look and see what type of contracts that you can get. You're going to go to your county, your state, and look to see what type of contracts you qualify for, or you're going to look to see which organizations have been funded, and then you're going to contact them and say, Hey, would you be interested in subcontracting a part of your grant to me?

(11:46):

You don't have to be a nonprofit for a nonprofit to subcontract to you. So I'm saying there are more ways to skin a cat than you think. You don't have to start a nonprofit. It just adds a lot. Running a nonprofit ain't for the faint of heart. There are so many organizations right now who have budgets $50,000 or less. How do I know? If you go to the IRS website and you put in nonprofit organizations, it goes and it shows you how many just file a 990 N, which is the postcard. That means that their budgets are under $50,000. Over 60% of those organizations have budgets under $50,000. Who can survive off of $50,000? Not too many people. And if you think that you can, then I'm telling you, you're going to be in struggle mode because $50,000 doesn't even cover a salary. So you want to be in the 350, $400,000 space to run a nonprofit.

(12:53):

I don't want you to think, oh, if we just had 10,000, if you had $10,000, you could potentially, and $10,000 is not enough for a program. A program generally should start at about $50,000, but that's a different conversation. But let's just say $10,000 is what they're offering. How do you survive off of that? That's got to go directly to your programs. So when we talk about perpetuating this poverty mode in the nonprofit sector, this is how it starts. It starts with people believing that running a nonprofit is easy. It starts with people believing that the grant money is just there. It starts with people not understanding that they are starting a business with the philanthropic purpose. So you've got that business. In that business. You've got things that are tied to that business. For example, when you incorporate, you're saying to the state, I'm functioning as a nonprofit, so you got to report to the state, and then you report to the federal government, which is the IRS, and you report to the county.

(14:00):

Those are state, federal, and county requirements. So that is the business part, but then you got the nonprofit part, right? So there is a lot that goes into running a nonprofit. I won't lie to you, I'll never lie to you. It is not something that I would consider easy. With all of my experience, 30 years doing everything, being a coordinator, a programs developer, a grant writer, a board member, an executive director, a funder. I chose not to start a nonprofit because it is a lot of work and so love you. I really, really do. But I'm keeping it real. If you are at that place where you're thinking about starting a nonprofit, think long and hard. Come in with knowledge. Do your homework first. Don't just get incorporated. Anybody will take your money and incorporate your organization. Really learn about what it takes to run a nonprofit.

(15:02):

If you have no money, if you're starting with no money, if you're starting with a board that are your friends and family, you're starting off like most nonprofits, but that's not a good thing. I want you to start from a place of power so that you can make the impact in your community that you really wanted to make. So don't just dive in thinking because other people said, oh, you can just get a grant. They don't know. They don't know. It takes a lot. So I am encouraging you just to think about it and to do your research. Do your research. Go to my website. I have a workbook that will help you to really determine even if your organization is fundable before you even step into it. So just do your due diligence before you jump into the space. And for those of you who are already in the space, this is what I'm going to say to you.

(15:57):

If you are not in the mindset that you need to do the work to run the organization, then perhaps you need to step out of the space because it's not going to get any easier. However, if you are committed to running a profitable nonprofit, then I have the resources to support you. I'm here to help you close that gap to get from point A to point B, because there's a lot of information out there and it's confusing. I take my information specifically from the IRS. It's not Amber Wynn said. It's what the IRS said, because if you are in alignment with the IRS, there's a higher likelihood that you're going to be funded because you funders are in alignment with the IRS. So if you are struggling to keep your nonprofit afloat, if you are self-funding your nonprofit, you know what I mean, right? It ain't for the faint of heart.

(16:53):

It is a lot of work. However, if you are willing to do the work, then I'm your girl and I got your back. Go visit my website, www.amberwynn.net, and I've got tons of resources for you. But I really just wanted to be that person out there saying to people, no, don't just start a nonprofit. You can make an impact in your community without starting one. You just got to know that there are other options out there, and I want to share those options with you. Also, on my blog, you can read, there's an article Six Sexy Alternatives for Starting a nonprofit. Go check that out. Read up and see what other options you have out there. Ask for your girl. I'm always going to have your back. I'm always going to be there for you. So just wanted to share that with you. However, if you are about your business, if you are about starting your nonprofit, guess what resource I have for you?

(17:50):

I've got the roadmap. Let's take a look at 90 days to a Profitable nonprofit that's going to help you get from where you are to where you want to be. 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 walked in your shoes, I'm not here to make you spend your will, waste your time or your hard earned money.

(18:39):

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 and hundreds of hours. 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 secrets, tips, tricks of a 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 programs.

(19:39):

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. 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.

(20:32):

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. We're talking about how running a nonprofit ain't for the faint of heart facts. That's all I have to say about that is facts. It's time for the episode where you get to ask your questions. It's called Ask Amber. You can hit me up on all of my socials to contact me and ask your question. Today's question comes from Archie. Archie is from Chino, and the question is, Hey Amber, what is a statement of need and what specifically is a funder looking for? Archie? I went into detail on episode 33 called Validating Need. So go back and take a look at that episode to go deep.

(21:33):

But generally speaking, the statement of need is the research. It's the documentation that justifies your program. If there is a cause that you're asking for money for, your funder wants to know that there is a real need for it. And how they determine if there's a real need is there's some data out there. There's some research. There's a PhD that says this is an issue and the data backs it up. It's not enough for you to say there's an issue. A university, some type of research agency has to say that there is a documented need subject matter expert, and they want you to provide that in your statement of need to show that what's going on in your community is an issue and is that issue tied to a larger issue? How the problem came to be, how to solve the problem and why your organization is the organization that is best qualified to resolve that issue.

(22:48):

And so again, take a look at episode 33, validating the need, but essentially, your statement of need needs to be justified. It's not enough for you to say, oh, these kids are dah, dah, dah, dah. And this program, there has to be data in there, quantifiable data that is backed by a subject matter expert, usually a person with a PhD to say that this is in fact an issue. Thank you for that question. If you have a question, feel free to reach me on any of my socials and I'll be happy to answer your question on air. Now, we're going to shift to shine on nonprofit. It's the part of the episode where I get to shine a light on the most amazing individuals on the planet. My nonprofit founders and executive directors and I have expanded to also include those individuals like myself who supports nonprofit because we want our nonprofits to know that there are resources out there to support them. We are wrapping up our conversation with Chrystani Heinrich from Compton Girls Club, who's doing the dang thing out there in Compton, making the world a better place for young girls. So I'd like to say thank you to Chrystani for all of her work that she's doing in Compton, and we're going to wrap up this series with Compton Girls Club.

Speaker 4 (24:29):

So in the beginning, I was, like I said, I was googling every single step. If it was a word I didn't know, I had to Google it, and I was boots on the ground doing self-learning. But then as I grew and went along, I saw that there were options. I was reached out to by the Black Equity Collective of London, thank you a million times, and she introduced me to this program build. And when I tell you I learned a thesis level, major level of education in one year, I eventually would've got there because that's who I am, but it would've took me seven years instead of one. So that's how I got my knowledge of how to run and work a nonprofit between the Black Equity Collective and Amber Wynn. Y'all have been my saviors with this organization. Sometimes I felt like maybe I'm not supposed to do this. Maybe this is not my work. And even just I felt like my ancestors like, no, this is what you here for. Push through, reach out to folks who have done it before, and that's super why I'm here and working. Yeah,

Speaker 2 (26:04):

And we're back. We are wrapping up our conversation with a very dynamic leader. I've had the pleasure of working with Compton Girls Club over the past year, and when you talk about dedication and commitment, you're talking about Chrystani. If you'd like to have your nonprofit featured on air with Amber Wynn, hit me up on any of my socials. I'd love to feature you. Also, if you are a consultant to subject matter expert out there, focusing on supporting the most amazing people on the planet, I'd like to feature you as well. My goal is to get you the visibility that you need so that your recruitment process is a whole lot easier. People know that you exist, but also, and most importantly, so funders out there can know that you can exist and write you a check for what you're doing out in the community. Thank you so much. I know today's episode was a little bit different,

(27:01):

But I think it's important for people to hear the real. A lot of times people who have good intentions and good hearts get sucked into this nonprofit sector thinking that it's easy thinking, that it's simple, and it is not. So I just want you to be mindful of that. I want you to hear the truth. If you want to step into this space, I got you. But I want you to step into this space from a place of knowing. I want you to make informed decisions. I don't want you to step into this space thinking, oh yeah, I'm just going to start this nonprofit, and all of this grant money is just going to come. That's not it at all. You're probably going to have to work three times as hard as you would if you started a regular for-profit. And there are ways that you can support your community without starting a nonprofit.

(27:53):

It just takes your due diligence in doing some research. So go check out my website. I will point you to where you can start your research to see if this is where you want to be. All right? So thank you so much for spending time with me today. Thank you for allowing me to be in your space. We'll see you next week. If you like the information that you heard today, be sure to share it. Be sure to like subscribe, but most importantly, be sure to take care of yourself, like you take care of your community. I'll see you guys next week.

Speaker 1 (28:27):

Thanks for listening. If you enjoyed 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.