Episode 31: If You Ask This Question, It Means This . . .
Do you think your questions are innocent? They leave clues about what you know. That knowledge (or lack thereof) can prevent your organization from securing funding. Funders look for the most qualified nonprofits to fund. Your questions may be telling them your organization is not a good investment. Learn what your questions reveal about your nonprofit knowledge.
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Podcast Transcript
Speaker 1 (00:02):
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 (00:24):
Hey fam, it's your girl and I'm back. If you guys have been rocking with me, then you know that this is a very special time for me because I get to spend time with the nonprofit community sharing my 30 years of experience in every sector. I've worked in every sector, and I've held every position y'all from emptying trash to giving out 7 million annually in research grants. And today we're gonna talk about questions. What do I mean? I mean, I've been doing this for 30 years and invariably someone will say some type of question, How can I get a grant? Or how do I pay my board? Or we're gonna talk about the questions that you ask and what they mean. And why is that important? Because I wanna set you up powerfully for success. And when you ask certain questions a certain way, you're gonna get certain results. For example grant writers, there are a lot of shady people out there taking advantage of really well-intentioned people. And based on how you ask certain questions, they know if you know about grant writing or not, and they're gonna take advantage of you. So in this episode, we're gonna talk about questions that you ask and what they mean. But first, you know how we do it. We're gonna pause for a break and then when we get back, we'll jump right into the content.
Speaker 3 (01:48):
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Speaker 3 (02:14):
Is your business organized so that you can tell which key documents are needed to efficiently run the business? How about woman-owned small business or disadvantaged business enterprise certifications? You have a checklist of all the key documents you need to become certified? Does your current system allow you to conduct market research from multiple sources and provide you industry and market data in seconds? Well, SmallBizPro does all of that and more. SmallBizPro is the number one business management compliance, procurement assistance, and market research assistance tool on the market today. Download the app now and you will be amazed. It's like having three additional employees working for you, but you don't have to pay them. What are you waiting for?
Speaker 2 (02:59):
Hey, so we're back with on Air with Amber is your girl, and today we are talking about the type of questions that I hear and what they mean. So for example, I'm in forums or someone just asks me a question cuz they know that I, I'm in the nonprofit sector. When a nonprofit leader first gets their 501(c)(3), the first thing that you'll typically see in a form is, Hey guys, I got my 501(c)(3). How do I get a grant to fund this program? Or how do I get a grant to do X, Y and Z? And what that lets me know is that this person knows nothing about the nonprofit sector because number one, you just got your 501(c)(3). So unless you've been doing the work for a while and it's not just a concept in your mind, you won't qualify for a grant, right?
Speaker 2 (03:51):
So what I want you to number one do is go back and look at some of the episodes when we first start talking about building your infrastructure and getting a track record. Cause that's what you need to do first. So if you're just joining us you're just new to the nonprofit sector, the very first thing you don't wanna do is to get a grant. You wanna build up your infrastructure, you want to create a track record and then you want to looking for, you wanna start looking for how to fund your organization. So that should be the question that you ask. Hey guys, I just got my 501(c)(3), I'm looking to secure funds for my organization. Cuz that's really where you are. If you are gonna qualify for a grant, it's gonna be a very small grant, 500, a thousand, 1500, and it's something is better than nothing.
Speaker 2 (04:45):
But when you say, how do I get a grant? If you're on one of those forums, you're gonna get a whole bunch of people saying, I can help you, I can help you. They're grant writers and some of them are predators. So just be very, very careful. The next question I get also is Hey is there money out there to start a nonprofit? And what that means again, is that you don't understand that a nonprofit is a business and every business has business expenses. So the answer to that is no. But what I'm going to encourage you to do if you're looking to start a nonprofit is to, again, go back to some of the earlier episodes where I break down why number one, you can't start a nonprofit with no money. And then number two, why a nonprofit is a business and why you need to know that it generally takes anywhere between 1200 to like $2,500 to start a nonprofit.
Speaker 2 (05:47):
But I want you to step out powerfully understanding that these questions, they tell people what it is that and you don't know. And it's perfectly fine that you don't know, but I'm here to set you up powerfully for success. So go check out some of the earlier episodes where I break down why a nonprofit is a business. And then also if you ask the question, How should I pay my board? How can I pay my board? Or how much should I pay my board? What that means is you don't understand what the IRS has done in setting up the 501(c)(3). There is already an infrastructure. And in that infrastructure, nonprofit board members don't get paid. They are volunteers. So what you wanna do is maybe you can ask the question of how do I get my board engaged? Or how do I recruit really seasoned board members?
Speaker 2 (06:44):
Because if you're saying to me, How do I pay my board members? I know you don't have seasoned board members, because seasoned board members know that they're there for service, they're there to leverage their experience, their resources and service to your organization. So if the expectation is that you get paid, then you're conflating the role of a for-profit board, which they do get paid in a nonprofit board, which they don't. So just really wanna set you up powerfully. And when you're looking at some of these things what type of questions should you really be asking? So for the nonprofit board is how do I get my board engaged or how do I recruit seasoned board members? Because at the end of the day, you wanna make sure that you're following the IRS rules. It's not Amber's rules, it's not you get to make up the rules as you go along.
Speaker 2 (07:35):
It's really, really about knowing what the IRS expects, understanding what a funder expects and following those rules. Because here's the thing, if you're running your nonprofit the right way, then you have an infrastructure, meaning you have a way that's going to track the way that you are distributing your finances. And if on those finances, a funder sees that you are distributing payment to your board, then they're not gonna fund you because you're not supposed to pay your board. And so it just creates all types of issues. So the most important thing that I would say right now is before you jump into this crazy world called nonprofit management, is to do your research and to really understand what you're jumping into. I have my gosh, about 30 episodes now where you can really just dive into whatever topic that you're unsure about, learn the ins and outs so that when you are around potential funders, potential board members, you're not saying things that give you those telltale signs that you don't know what you're talking about.
Speaker 2 (08:40):
And trust me, having sat in the funder's seat I'm gonna look at you sideways and I'm not gonna fund you. Remember, there are more applicants than there is money. And a funder is looking for reasons not to fund you. So if you say something that's like off-kilter, it's like I'm not feeling confident in this person. And so they're gonna start digging and doing more research and they're gonna find that you really aren't ready for funding. So you wanna look the part, you wanna say things in such a way that a funder or a potential board member will feel comfortable with you. And so if you come out the gate asking questions like, Well, how do I get a grant to fund my building and how do I get a grant? You don't get grants to support your mission. You get grants to fund your organization.
Speaker 2 (09:31):
And then this one is a very common one that I hear all of the time. Where can I find a grant writer who will take a percentage of the award once they get it? That is a red flag for me. If you are asking how can you pay a grant writer out of the award that they win, it says you have no money. And if you don't have a budget, if you don't have any money, then guess what? You shouldn't be starting a nonprofit. It is illegal for you to pay a grant writer out of the grant money that you received because nowhere in that proposal did you say you were paying for a grant writer. More importantly, you're taking money from a proposal to fund services that were administered prior to the proposal so that that's really mismanagement of funds. And if a funder understands that that's what you've done, then they're gonna rescind the grant and they're gonna make you pay back the rest of the money because they did not give you that money to pay a grant writer.
Speaker 2 (10:27):
They gave you money for services that you will do from this point moving forward. So it's important that you understand the questions that you ask really gives a person insight into what type of nonprofit you're running, what type of leader you are. And I just wanted to start that conversation cuz again, you don't know what you don't know, but if I can powerfully position you to at least come out better than your competition, then that's my role and that's what I'm here to do. So right now we're gonna pause, but before that, I wanted to share with you for those of you who are just jumping into the nonprofit sector that I have established a membership site and the membership site has different levels. Remember in the beginning of the beginning we were talking a little bit about staging yourself and seeing where you are on the nonprofit success path.
Speaker 2 (11:26):
I am offering the nonprofit sector in my membership site, just the basic level. And in the basic level, all of this information that I'm talking to you about how you should pose your question, the answers to those questions, it's gonna be in the free level and it's because I want people going into the nonprofit sector to understand what it entails. And so that's free. The second level is going to be where you have access to information. You get to see me in a private Facebook, ask your questions and we can really engage. And then the third level is more in depth. You have access to coaching a mastermind group. But for this section, when we talk about the questions you should and should not ask or how you should go into this membership site, join, get the basic level, it's for free. Get access to all of this information so that you can powerfully lead your organization.
Speaker 2 (12:24):
Knowledge is power you guys, and once you have it, you can't get rid of it. And so it's important that you know what you're supposed to be doing and how you're supposed to be doing it. So go check me out, www.amberwynn.net, and in the top right hand corner, you'll see a link. It'll say, Membership go in, enroll for the free membership. You don't have to pay anything. That information is there for you to help you be a better leader. So check that out. And right now we're gonna pause for another break. And when we come back, guess what we get to answer your question on? Ask Amber.
Speaker 4 (12:58):
You're a school, a foundation, a healthcare provider or an environmental group, a museum, a church, a shelter or a community service. You're starting a nonprofit on a startup budget and you need to get this right the first time. No mistakes, no misunderstandings, and no costly do-overs. At Nonprofit Elite, we know what you need because we've been there too. Accurate information, mistake-free filings and peace of mind assurance that your 501(c)(3) application will be successful. This is what we do and we are very good at it, all backed by our industry-leading guarantee and 100% IRS approval rate. But forming your nonprofit and obtaining tax-exempt status is just the beginning. Once you're up and running Nonprofit Elite will consolidate the bulk of your operations into one place, including your accounting, compliance, website, fundraising, and more. We do the work of several full-time staff for just a fraction of the cost so that you can remain focused on advancing your mission, contact Nonprofit Elite for expert preparation of your formation documents and 501(c)(3) application. And for a full range of accounting, fundraising, and administrative solutions.
Speaker 2 (14:19):
Welcome back. You're on air with Amber, it's your girl. And today we're talking about the questions that you ask and how potential funders, clients, even donors interpret them. And now we're at the section of the episode where you get to ask me your questions. You can reach out to me on all of my social media, you can email me. This question is actually from my email, it's from Terrence in Van Nuys. And his question is, “I was asked by a potential donor if I was on GuideStar, what is that and what does it have to do with someone donating?” Great question, Terrence. So GuideStar was established back in 2016 to try and bring transparency into the nonprofit sector. So it serves as a portal for people interested in donating to really try and vet nonprofits, right? So when I tell you you've gotta look the part, you have to have the infrastructure, it's because people are giving away their money and they wanna know that they're giving it away to a trusted source.
Speaker 2 (15:30):
So GuideStar put together this portal where you would upload your 990s, you'd give them all the information about your organization and basically they rate you, they give you a bronze, silver or bronze, silver or gold rating. I think they even have platinum. And it's based on certain things like your ratio for indirect cost or your overhead to your program cost. All of the documents do you have three years of 990s. They have over 2.5 million US nonprofits on there. And I can tell you as a funder, we leverage that. If we don't have enough information about you, we'll go to GuideStar and we'll look and see. Number one, if you're registered, cuz you have to register yourself, it's free. And then number two, if we want more information on the top three you list the top three staff people in their salaries, we get to look at that.
Speaker 2 (16:34):
So it's designed to help the public access information about nonprofits and it's to help them to do their due diligence. But I also wanna let you know that there's 2.5 million non-profits on this site and funders go to the site. I want you to know that you can also leverage this site to your benefit because it's free. You get to register. And this is what also happens. Sometimes people are like, Ooh, I wanna donate to an organization that's focusing on wildlife. And so they'll go into GuideStar and they'll do a search and all of the organizations that are on GuideStar will pop up. So that's free advertising, that's free access to potential donors. So it is also beneficial to you if you're registered on GuideStar, the caveat being that you know, have all of these things in place so that your infrastructure is tight. You can provide a balance sheet, your annual budget, things of that nature.
Speaker 2 (17:37):
But once you have those things in place, I would highly recommend that you get on GuideStar because a lot of donors do wanna be able to do their due diligence and make sure that your organization is been vetted. They make sure that your 501(c)(3) tax exempt is still active and then that you have a 990 that's been audited. So they're looking for those types of things, Terrence. So for the rest of you again, this is your opportunity to ask me your most pressing questions. So feel free to reach out to me via any of my social media or email me at amber@amberwynn.net and ask me your questions. And I'm so happy to give you the answers that I have cuz as you know, they say in school, there are no dumb questions. There are, but not for you. Reach out to me and let me know what it is you're thinking about.
Speaker 2 (18:29):
All right. Now lates and gentlemen is the time where we do the thing that I love the most in my episode, besides sharing information with you. I love that, too. But I love putting a spotlight on my nonprofits because you guys are the most amazing people in the world. You're doing the work, you're filling the gap. And so during my episode, I do a spotlight and this week's spotlight is on Kid Power International Kid Power International's mission is to create cultures of caring, respect, and safety for everyone everywhere. It also works to prepare people of all ages, abilities, backgrounds, and walks of life to take charge of their safety and to protect children and other vulnerable people in their care. Let's see a little bit more about what Kid Power does.
Speaker 5 (19:23):
Every child deserves to feel safe and every child deserves to feel protected. But many children do not feel safe or protected. Sometimes the world hears their stories, but far more stories of bullying, violence, and abuse are never told. None of us have the power to change the past. But the future, that's a different story. Many of tomorrow's stories of bullying, abuse, abduction, and assault are preventable. Kid Power is about changing the future of violence and abuse. Starting now. Since 1989, Kid Power has created opportunities for more than 1 million people around the world to recognize the power they have and to learn how to use that power to be safe and to thrive. Kid Power students include children and teenagers, girls and boys and kid power students include adults because no one ever outgrows the right to feel safe. Kid Power students are people whose true abilities are so easily underestimated and so often overlooked whether you have heard their stories or not. Kid Power students are turning tides, changing directions, and using their power to create stories of safety where stories of violence might have been but never came. That is the vision and the adventure. That is Kid Power. It's unstoppable because it works. It's exciting because it changes lives. We're growing every day because children everywhere deserve nothing less. And we need your help. Thank you.
Speaker 2 (21:23):
What an amazing organization. There's truth to power. And when you have organizations out there giving individuals with all types of abilities, ages, and it doesn't matter, gender the ability to take back that power, that is an amazing thing. So thank you Kid Power for all that you do. And if you would like to support this amazing organization, please visit them at www.kidpower.org or you can contact them at 804 676997. Yay, <laugh>. All right, so now we've come to the point in the episode where Amber gets to speak her mind just a little bit. It's called Mindset Minute. And I wanna talk to you about what's your why during my workshops. I play this short video by Simon Sinek, S I N E K. I'll put the link in the bio for you to check it out. And he talks about what's your why? And I come across a lot of people who start non-profits for the wrong reason.
Speaker 2 (22:38):
And I say it's the wrong reason because they don't understand all that they're undertaking. They think it's gonna be simple, they think it's gonna be easy. They think all of this money is sitting out here waiting for them, and they just need to start a nonprofit and it's gonna fall into their lap. And here's why your why is important is because they are. There is gonna be a time, there's gonna be multiple times when this stuff is so hard, you wanna just walk away. But if you're in it because you see them missing in your community, if you're in it because you are passionate about closing a disparity gap, if you're passionate because you wanna right a wrong, then when those times get hard, you are gonna stay the course because your passion is fueling you and you know what you're there for. But if you come into this for the wrong reason, if you think this is gonna be your retirement plan, if you think this is gonna be easier than collecting a check every two weeks, then when those times get difficult, when those times get hard, when you don't know how you're gonna make it happen, then that's when you give up.
Speaker 2 (23:47):
Over 40% of all nonprofits close their doors within two years. And it's not because they weren't passionate, but what was their why? And it could have very well been, they just didn't understand what a nonprofit is and all that it entails. And I'm trying to prevent that, right? Sometimes even having passion is not enough, right? Because I have passion for a lot of things, but I'm not gonna start a business around it. I will contribute either financially or I will volunteer. And so just really understanding what it is that you want to accomplish. If you wanna make a difference, you can make a difference without starting a nonprofit. You can start a donor advised fund or you can volunteer, you can be on somebody's board. Are you up to the challenge of starting a business, funding a business, running a business and all that it entails?
Speaker 2 (24:40):
So to me, just understanding your why, what it is that you wanna do, how I got to being a nonprofit consultant really focuses around my why. I always envisioned that I would make a huge impact on this world. And so I joined organizations, I joined the NAACP. I joined my sorority because I felt like there was power in numbers. Just me, all by my myself. How would I change the world? I'm bad, but am I that bad? Yes, I am <laugh>. And so that's how I got to this. I got to this because if I can leverage my knowledge, my skills, and strengthen nonprofit organizations, then by default I am changing the world. And it took me a minute to get there. It took me six years to figure out what my business model was gonna be and what I was gonna do. But I see it clearly now when I'm talking to nonprofit leaders and they're like, Oh, when I'm talking to grant writers and I'm telling them what they need to do to strengthen, oh, and then they go back and I see the difference.
Speaker 2 (25:47):
I've transformed tons of nonprofit organizations and now that they're making money, now they have choices. Now they can expand their programs. I'm a part of that. I mean, the nonprofit leaders are doing the hard work of course, but it's because they've strengthened their infrastructures that they now can qualify for funding. Now they know what the purpose of a board is and how to engage their board, their board's bringing in more money. My why is to make a difference in communities, like a big difference. And how I accomplish my why is by strengthening the nonprofit leader, the founder, the executive director. And as a direct result, I get to strengthen communities. So when it gets tough and it does, y'all don't get it twisted. Running a business. And I say this about my nonprofits cuz I'm running myself, Running a business ain't easy. I am an expert in all things that is nonprofit, but I have a for-profit.
Speaker 2 (26:45):
So I have the same type of learning curve that you have. And so I can stay the course because I'm committed to you. I can stay the course because I know that once your organization is strengthened, so will the communities. And so I push through because if I'm here doing my job, then I make your job easier. And by default, we improve community. So this Mindset Minute is really just to ask you to pause and think about your why and why you're doing what you're doing. And if it really aligns with being a nonprofit. And if it does, then I am going to encourage you to do the research to really get into deep, get in deeply to what it is you need to know so that you can be an effective nonprofit. Because guess what? Times are gonna get rough and you're gonna need that type of passion just to push you through.
Speaker 2 (27:37):
All right? So thank you for joining me today. If you liked what you heard and you think it can benefit somebody, please, please, please forward this episode on to them. Be sure to subscribe, and if you have any questions or if you would like to be highlighted in my nonprofit section reach out to me at my email and send me a video. Two minutes or less. Make sure it has your contact information on there cuz it goes up. And we want everybody to be able to reach you, funders and clients as well. And I'm gonna tell you what I like to say. I want you to take care of yourself like you take care of your community cause y'all some hard work and people. And if you take care of yourself, like you take care of your community, we gonna be all right. Until next episode, I'm out.
Speaker 1 (28:30):
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.
