Episode 82: The Nonprofit Success Roadmap: Stage 2 - Develop your Purpose

How to recruit board members (you don’t pay), funders, and clients. It starts with a clear purpose. Learn what it entails.

SPONSORS:
WaveApps: https://www.waveapps.com/

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NONPROFIT SPOTLIGHT:
This episode highlights the nonprofit "Art Share LA."

Located in Los Angeles, this organization focuses on providing equitable access and opportunities for emerging artists.

Check out Art Share LA! 👇🏿👇🏿👇🏿

Website: https://artsharela.org/

Instagram: https://www.instagram.com/artshare_la/

Facebook: https://www.facebook.com/ArtShareLosAngeles/

YouTube: https://www.youtube.com/channel/UCn09XGrjkHCJbDu0d3MCH-g

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Podcast Transcript

Speaker 1 (00:02):

Hey fam, it's your girl, Amber Wynn, Philanthrepreneur, and I'm excited about 2024. A lot of changes are in store here on air with Amber Wynn. And as I wrap up with new episodes and some new additions to the format, I wanted to revisit probably the most important episodes on the show, the nonprofit Success roadmap, because when you stage your nonprofit, you save yourself hundreds of hours in sweat equity and thousands of dollars out of your pocket because you're not focusing on work, your organization isn't ready for it. Here's the thing, you have to be honest. If you've been self-funding your organization for the past 5, 10, 15, 20 years, don't say, oh, I have an accurate budget, or I have a clear mission. Because if you did, you wouldn't still be self-funding your organization do something different to get a different result. Okay? So take a look at the seven stages of the nonprofit success roadmap to determine where your organization is and work to move toward the next stage and look out for new episodes.

Speaker 2 (01:14):

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 3 (01:35):

Hello

Speaker 4 (01:36):

Fam, it's your girl, Amber Wynn, Philanthrepreneur, and I am so excited about today's topic. We have been covering the nonprofit success roadmap, and for those of you just joining us on this journey, the nonprofit success roadmap is your roadmap to all things nonprofit and success and sustainability and funding. There is a lot of information out there and sometimes you can get overwhelmed. And so what I've done is I've created a step-by-step process to help you wade through all of the overwhelm, all of the information that's out there because I know it can be challenging. I have over 30 years of nonprofit experience and some of that is being a founder and being an executive director. And it ain't easy. So my job, my role, my commitment to the most amazing people in the world, nonprofit founders and executives, directors, is to hold your hand through the process.

(02:37):

And today we're on stage two of the nonprofit success roadmap, which is to develop your purpose. Your purpose is your North Star. And so we're going to talk about what that means and how to make sure that your purpose is clear and structured, and it's something that a funder can read and understand if your purpose aligns with their mission. And that's what's important. Y'all know my focus is about the money. Why? Because I know you're going to do the work. You're doing the work and you're not getting paid. So my commitment, my goal, my purpose, my purpose is to make sure that the hardest working people in the country, that you're getting the same thing that you're getting out because you give to your community, you probably give things that should be protected, your own personal assets. And so my goal is to make sure that you're taken care of as much as you take care of your community. So that's what we're going to talk about today. But before we start, y'all know the deal. We're going to pause for a minute to hear from one of our sponsors.

Speaker 5 (03:52):

You are 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 4 (05:13):

Welcome back. You're on air with Amber Wynn, Philanthrepreneur, and today we are on stage two of the nonprofit success roadmap and we're talking about developing your purpose. So what is your purpose? Your purpose is your North star. It is your reasoning for being and funders, potential clients, collaborators, they all need to know what your purpose is. And let's be clear, without a purpose, you will be going in all kinds of different directions and we don't want that. We want you to be clear. We want you to be focused. So the big deal about developing your purposes, you have to have a reason for being that really comes down to what is the need in your community. Your purpose should not be because you want to leave the crazy job that you're at and start your own business. Now, I'm not going to say that that hasn't been the case.

(06:11):

I've had plenty of people come to me saying, I'm going to start a nonprofit, I'm going to do my own thing. That's not a good enough purpose. As a matter of fact, it's not the right purpose, right? When the IRS is looking at why you're starting an organization, the purpose has to be because you're meeting a need in the community, and more importantly, your purpose drives your programs, right? If you are trying to start a nonprofit so that you can get a salary and get some of that free money that's out there and you're just going to say, oh, well, we can serve these people or we can serve those people, it's going to be reflected in your programs. And so if you have a purpose and you're meeting the need of your community, then you will have innovative programs because you're designing programs to meet that need.

(07:03):

Another important reason to have a solid purpose is because it is the foundation of all things recruitment, whether you're recruiting clients, whether you're recruiting board members, your purpose is what inspires, first of all, your board members to support you. And why I say support you is because basically your board members are volunteers. You're not paying them. So if your purpose is inspirational and it's making a difference in the community, then you'll get solid nonprofit board leaders to be a part of your organization. And we're going to dive into this in a minute, but your purpose is essential for a solid needs statement. Now, what's a need statement? A need statement is what every funder asks you for, right? Why are you in existence? And so your need statement is shaped around your purpose. Let's talk a little bit about that. How to develop an effective needs statement.

(08:05):

When you are applying for a grant or you are reaching out to individual donors or major donors, you have to explain why should they support you? Why should they write out a $250,000 check to your organization? And it all comes down to the needs, not your needs as an organization. It's where some people go wrong. We need the money so that we can pay the bills and we can pay salaries, and that's not a need statement. That is a business problem, right? That's your problem. The need statement talks about the need in your community. If you are serving teens and a metropolitan city, the need is to provide young women with an alternative from two to six. What can they be doing besides making babies? We can put them in the pipeline for STEM careers. We can teach them how to be entrepreneurs, but there's a need.

(09:07):

This high rate of pregnancy comes because our young girls don't have an outlet. So your needs statement is very important. The first thing you want to do is to define the problem. What are the root causes? Well, the root causes of teen pregnancy in this community is that there are no resources. We don't have any rec centers. We don't have any programs or projects designed to work with kids after school or we don't have enough, or we don't have the types of programs that's going to engage young girls in their teens. They don't want to kick a ball, they're not interested in that. But maybe if we taught them how to be social media managers, since they're good with the thumbs anyway, that would be something that they're interested in. Maybe if we taught them how to do podcasting because they can be in front of an audience or how to be an influencer that would keep them off of the street.

(10:01):

So we want to look at not only what the problem is, but what is the reason that it's there. It's a lack of resources. Then when you want to talk about, you want to provide the people who are going to fund you with not only quantitative, which is measurable, like tangible numbers, but qualitative data to support the existence of the problem and the extent of your need. It's one thing for me to say, oh yeah, these girls are coming up pregnant because we don't have resources. That's my word against everyone else's. But if there's census data out there that says for this 25 mile, square mile area, these neighborhoods, there's maybe one social service program for every 500 people. That's data. And you want to have that type of data to say, listen, we don't have the resources that we need. And the information is out there and the information is free.

(11:07):

You've got the census Bureau, you've got elected officials, you've got agencies, just Google it, right? Resources, and you put your zip code, but you want to have quantifiable data that proves that what you're saying is true. And then secondly, qualitative data. You can have people who are in your program speak to the challenges that they've been experiencing. It's their truth, it's their lived truth. So if they're saying on a video or a quote and it says, I'm excited about this program because before that I didn't have anything to do, or we just hung out and did whatever. So you want to provide data that really speaks to what the missing is. Next thing you want to do is for your need statement is to actually write it. What is the current situation? 56% of all girls in this specific area have either had a child, had terminated a pregnancy, or are at risk of being pregnant. That's what is right now. That is our truth. You want the funder to know, without support, without resources, this situation is going to be dire and it's going to get worse. And then finally, you want to explain why your organization is the answer to the problem.

(12:42):

You can talk about things if you are just starting. You can talk about your years of experience. Maybe you don't have demonstrated impact, but you've got over 15 years of experience working with youth from marginalized communities. Maybe you have a degree in some type of social service. Maybe you're a social worker or you've got background working with youth, whatever that is, but you are the solution. Maybe it's simply that you've come from that community and you've thrived after being exposed to the things that you're trying to expose your youth to. You can talk about that. Your board members, as I've shared with you, are responsible for guiding the organization. A lot of nonprofits aren't set up that way, but funders and the IRS expect that to be the structure. So if you haven't gotten to the point where you can hire staff, speak to the experience of your board members because the board members are guiding the direction.

(13:40):

We have board members who are psychologists, who are psychiatrists, who are in education, who are in some of these STEM fields. You want to get your girls into talk about their experience. And then also you may want to talk about other things like how you're going to deliver the programs and what that looks like. Your needs statement, and talking about who you are and why you are the solution is critical to funders understanding that there's no one else who can do this like you. If I were to talk about my company and my solution to why nonprofit leaders struggle, I would say, well, number one, I've been in the industry for over 30 years. Number two, I've held every position from emptying the trash can to being a grant writer, securing over $3.2 million in grants to being an executive director. I've also been a funder, so my experience sets me apart from everyone else, and that's what you want to do.

(14:47):

I am the solution because I can talk to my potential clients from every different perspective. I can give them insight that no one else can give them, and that's what you want to do. Listen, when we talk about the developing programs, I say to my clients, not only can I show you how to develop the program, but I can look at your program and tell you why it won't work. Why? Because I'm from Watts and I'm telling you this isn't going to work. This isn't realistic. So you want to make sure that when you're talking about your experience, that you highlight those things that set you apart. This all happens in your needs statement, but you can't create your needs statement if you don't know your purpose. So it all comes together and it's extremely important that you understand that. And what I'm going to give you today actually is a checklist, and it has in it the elements of an effective needs statement because it's not enough to say, people in my community need my support. That's not strong enough. You need to back it up with data. You need to back it up with your experience and what's missing in the community. So I am going to provide you a checklist so that you can go through and make sure you have everything that you need in order to create an effective needs statement. Alright? So right now we're going to pause for another sponsor. And when we come back, then we're going to take a look at the question of the day.

Speaker 6 (16:20):

This is you and this is your business. From invoicing your first client to your 10th client, to your hundredth client. You'll need to get paid quickly. Pretty soon you'll be ready to hire some help and you'll need to pay them. As your business grows, wave is there to grow with you.

Speaker 4 (16:51):

So we're back and we are talking about the nonprofit success roadmap. We're on stage two, develop Your purpose a little bit earlier, we talked about how the purpose is important because it is the foundation for your needs statement. When I talk about purpose, I'm talking about your reason for being. And right now we're going to go into the segment called Ask Amber, where you get to ask Amber any question that's on your mind, and I'm going to answer it freely, openly, and honestly. So today's question is, my organization serves anyone in need. Why do I have to choose my target audience? This is an awesome question because my founders love you to death. You do. You want to help anyone in need? You don't want to discriminate. You don't want to turn people away. And the reality is you don't have to if that's your service model.

(17:47):

But I am going to tell you should definitely identify one specific target audience. Why? Because it helps to synthesize your statement of need. If you say, oh, we serve everybody, funders don't serve everybody. They are specific about the clients that they want to be served. So if Amber Wynn was a philanthropic person with tons of money, she would fund organizations that serve black girls in urban communities. Why? Because that resonates with me, because that was my experience and now that I have money, I want to invest in programs that are going to help young women get up out of the hood and live into their best lives. That's what I would fund. And so if you said to me, I fund everybody, I'm not interested in funding everybody. I specifically want to fund organizations that are going to serve young African-American girls in urban communities. That is why it is important that you pick one.

(18:52):

Not only that, but it shows that your organization is focused. If you serve everyone, then you don't have resources enough to serve everyone. That's just the reality. But if you serve one specific niche, then as a funder I'm thinking, okay, you're doing one thing, you're doing it well and you're focused. If you're serving the mama, the kid, the cousin, anybody, then you're definitely going to have to have a lot of resources because that is a lot. Whereas if you're just funding resources for this one little young girl, then you can replicate that, right? You can do the same thing for different families. So if you're doing the mama, the cousin, the uncle, or whatever, then you've got to create different curriculum. You've got to create different programs. But if it's just one specific target, then you have that information and you just replicate it in different areas.

(19:47):

So it's important that you understand when you say, oh, we serve everyone in need, that that's a red flag for a funder. So to answer your question, you want to be as focused as possible. You want the funder to understand that you understand that serving one target audience is your focus. Your resources are going to be specifically designated for them, and you understand what it is to be a viable nonprofit. At the end of the day, you want to be able to qualify for funds. Once you get your funds and you know what you're doing, you can expand on that. It's important to understand that this is not about you doing what you think you should do. This is about you doing what the IRS has determined you should do as a viable nonprofit organization. We talked about that last episode. You can't make it up as you go.

(20:46):

If you do, you're going to get derailed. And we don't want you to get derailed. We want you to have the best opportunity to get the most money possible. So that means you follow the rules. Once you get enough money inside, then you can start doing different things. When you get unrestricted funds, you can do whatever you want. But right now we're trying to set you up powerfully for success. And that's why we have the roadmap. We have the nonprofit success roadmap that's going to get you there. So when I say make sure that you focus on one or two things, listen, because I'm telling you from a space of knowing, I'm putting on my thunder hat when I look, I don't say, oh my God, this organization is amazing because they're helping anybody in need. I'm saying, this organization is not going to make it to the end of the finish line.

(21:40):

They're doing too many things for too many people and they don't even have the resources to really do one well, we want you to do one well. After you do one well, then you can expand. Alright, that's me. I'm going to jump off my little soapbox because I know that you get it. Alright, now this is our time for me to do what I love doing, which is giving our nonprofits the spotlight that they deserve. Today I'm going to put Shine a light on an amazing art organization. It's called Art Share la, and they're located downtown Los Angeles, and it is amazing. They gutted a factory and turned it into an arts hub with live and work artists. ls. They have two exhibition galleries, a theater, a classroom, and they focus on providing equitable access and opportunity for emerging artists by providing a creative environment for them to live, work, develop, perform, and exhibit. But let's hear more from the executive director, Cheyenne Solder.

Speaker 7 (22:57):

So when people walk into Art Share, the most common question we get is what is this place? And at the root of everything, we're a building. We're a 28,000 square foot two story building on the second floor we are proud to offer 30 affordable low-income units to artists to live and to work. These apartments are on high demand. They are the only 30 apartments in the arts district that are offered to artists. They are the only building where it's a hundred percent affordable in the arts district. And we're very proud of that, and we're very proud of the artists that live up there. On the first floor is really where the activity is happening. We have a main gallery space. We have our perimeter gallery space, and these are two really beautiful spaces that we're proud of that show visual artists works in an exhibition style.

(23:59):

When you first walk into Art Share, I think the first thing you notice is that we were once a warehouse and we really hold true to that. We're kind of a gritty, not too pristine, not too clean place. And that's mostly intentional. I'd say it's 70% intentional, 30% is we would love more funding to make it a little bit more presentable and beautiful. But the intention is to really allow people to feel comfortable when they walk in. You can visibly see them kind of relax and lean back, and it's an invitation to artists to come in and get dirty and get this building dirty to really, really get into their craft. So our two main gallery spaces are for that, for exhibition spaces, but then our studio spaces and our classroom spaces are really where the development happens of craft. As you walk around Art Share and you take in all that we have to offer from the artist actually working in their art studios or the artwork hanging on our walls, or if you stand on our stage and really get the spirit of what happens at Art Share, I hope you'll understand that art really happens when we allow artists to create.

(25:12):

When you start putting reins on them and add barriers and rules to their craft, that's when they become stifled. And I think art show's really here to allow the person as an artist to share their craft. And so that's what we're doing with you. We're sharing their art.

Speaker 8 (25:30):

Hey everybody, it's that time again, everybody listen. It's Solder says.

Speaker 4 (25:37):

So please check out Art Share, they're open Wednesdays through Sunday, one to 6:00 PM support their work, their mission, and the artists by donating, donate, donate, donate. You can find them at www.artsharela.org email them at info@artsharela.org or you can call them at (213) 687-4278. And that's it for our nonprofit spotlight. But that's not it for our program. We always wrap up with our mindset minute and today I want to focus on Jack of all trades, master of none, Jack of all trades, master of none. What do I mean by that? Well, it's talking a little bit about what I touched on in the Ask Amber segment. It's important that you do one thing great and tackle the rest as add-ons. So while I understand that if you are dealing with a family that has experienced trauma, it's difficult to just deal with that one child. I'm going to use that as an example.

(26:49):

My coaching to you is to start off strong with dealing with that one child. Get really good at dealing with that one target audience. Get so good that people are giving you funds. And then when they say to you, what do you need? You say, it would be awesome if we could support the family because we're only here for a small amount of time. If we can change the behavior in this family, this would reinforce the success of this child. And so now that program becomes an add-on program, and now you get to do what you always wanted to do, which is to help everyone. So in essence, you're going to create a core program and then you're going to have separate offerings which are offshoots of that core program. But always, always, always, you have a core program and that's what you're known for.

(27:44):

You're known for serving that target audience, but then you're going to say to your funder, we're going to reinforce the success of this core program by having offshoots that support the program. So don't be a jack of all trades and a master of none. Master that one thing, what your purpose is. And if you understand that this is going to bring you in more resources so that then you can add on additional programs to support that, then you know that at some point you're going to be able to do what you really want to do, which is to be a comprehensive organization providing all of the resources that your clients need. But go in stating, go in creating that one program that you're known for, that you master that when people hear your name, it's synonymous to that program. And then do offshoots of that.

(28:41):

Don't go in saying, I got to serve everybody. Go in saying, I've got to serve this one client really well. And then I'm going to build on that by having programs that support it. Alright, so that's it for the Mindset Minute. As a matter of fact, that's it for this episode. I'd like to thank you for joining me today. I'm so excited to be in your space and to share my experience. If you want to reach me, I am on all of the social media. You can find me on Instagram, you can find me on my website. I'm here for you. If you have questions for me for the Ask Amber segment, shoot me a question. I'm here to answer. I'm here to support you, and so I'm looking forward to speaking with you. Next episode, we're going to talk about stage three, which is developing your programs. Talk to you then.

Speaker 2 (29:41):

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.

Amber Wynn

Nonprofit expert with over 27 years experience in program development, funding, and compliance

https://www.amberwynn.net
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Episode 83: The Nonprofit Success Roadmap: Stage 3 - What Funders Consider Fundable

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Episode 81: The Nonprofit Success Roadmap: Stage 1 Pt. 2 - How to Start a Nonprofit “The Infrastructure”