So you think you want to be a (non-profit) parent…

by Jenn Raley Miller, Management & Communications Specialist, do good Consulting

In 2002, a colleague and I had a series of conversations that led to the decision to start a non-profit organization. It was a lot like having a baby. Were we ready to be parents? What were the “child’s” prospects in this crazy world? Were we really ready to make the life-changing, full-time commitment to nurture its progress, growth, and entry into society? Our "baby" was born in 2003, with the official "birth certificate" (of tax-exempt status) issued from the IRS.

This year, in 2010, we finalized the paperwork to close the organization. It never received the grants and donations we had envisioned, it turned out to be more difficult than anticipated to connect with clients and offer them the kind of support they needed, and the board’s commitment to doing work outside of board meetings waned early on.

If you're thinking of starting a non-profit organization, please take this lesson learned from my experience:

Think twice. Then think again.

I want to tell you, “Don’t do it”, but I don’t really mean it. Non-profit organizations are vital to a functioning society. So many problems in the community are begging for solutions that are not found in either the government or the for-profit sector. The non-profit sector is unique in its ability to meet needs and leverage resources that aren’t available to other entities.

BUT – the all-important "but" – starting a brand new organization is not always the solution. There are over a million non-profit organizations in the U.S., and over 1,000 in Champaign County alone.

Keep in mind that, much like parenting, you won’t have as much control over your baby organization as you might think. You may have specific ideas about how to meet the community need you’re concerned about. But remember: a non-profit is not a sole proprietorship business. You’ll have a board of directors (a group of people that makes decisions about the direction of the organization), volunteers, and staff that all have a say in how the work gets accomplished. Starting a non-profit organization is not going to be a fast track to implementing your unique ideas about how to change the world.

Here are some considerations for alternatives, before you make a commitment to parenting a full-fledged baby 501(c)(3) non-profit organization.

1. Get involved with an existing organization
If you’re an individual with an idea to meet a need that is already – more or less – being addressed by another organization, your best move is to become a volunteer, board member, or try to get hired there. Being on the inside allows you to add your good ideas and influence the way current programs are being done, and gain support to create new programs within that organization.

2. Become a program of another organization
Similarly, if you already have an informal program, you might be able to incorporate that program into a larger organization. Approach an organization that has a related, but relatively broad mission, and explore the mutual benefits of fitting your program into their work. A good example of a potential match is an organization that has a mission of “providing educational opportunities for children”, while you’re doing an informal afterschool program. The organization will be most receptive if you are willing to do the work that would have been required to start a new organization – specifically, raising the funds for the program, including your own compensation.

3. Seek fiscal sponsorship
The basic premise of a fiscal sponsorship is that an umbrella group has 501(c)(3) status, and your group can operate under that umbrella without having to spend the time, money, and hassle to become a stand-alone tax-exempt organization. The specifics of the relationship can vary. Typically the umbrella organization charges some kind of fee for this arrangement. For smaller and/or ad-hoc projects, it can actually save money to go this route. There are organizations in east central Illinois that offer this type of arrangement.

4. Become a chapter or affiliate of a national organization
It may be that what you’re thinking of doing is already being done by similar organizations all over the country. If so, there may be a national organization or association that can offer resources to help you start one in your community. This approach can give you instant access to name recognition, funds, infrastructure, and many other benefits. In some cases it may require that your organization incorporate as a local 501(c)(3) organization; in others, you may be able to operate under the structure of the parent organization.

5. Work within a government program
Sometimes a local or state government agency is the appropriate entity to meet a certain community need. If it is not happening, the problem may be funding. Meet with agency staffers to find out what kind of public support they need to do the work. As a private citizen, you may be able to help by lobbying lawmakers, or by applying for grants, to help the agency get the resources to get the program going.

6. Meet the need as a for-profit company
This is a viable option for some programs, believe it or not. Though you may think it’s easier to obtain “free money” through grants and donations, it may actually be easier to do your charitable work by basing it in an organization that focuses on “earned income” – that is, relevant work that can actually generate a profit. It just takes some out-of-the-box, entrepreneurial thinking.

Check out the blog article, “Are There Too Many Nonprofits?” for further debate on this topic.

If you’re ready to start your new program – whether you’d like to explore one of these alternative options or dive right in and start a new non-profit organization – do good is here to help. We have worked with numerous non-profits to get their baby organizations off to a great start in life, and we would be happy to be your birthing and parenting coaches as well.

ONE SIMPLE ACT

In each month’s Doing Good, you’ll find one great tip to implement over the next month. By taking this one small, achievable action each month, you can make big changes in your organization’s and your own performance, increase donations and volunteerism, and expand your group’s visibility. Give it a try!

This month's ONE SIMPLE ACT focuses on expanding your organization's reach.

To build organizational sustainability, you must maintain a constant and continued focus on expanding your organization's roles and reach. Constantly adding new contacts to your database and email lists keeps the community in touch with your goings-on and helps your group maintain contact with supporters. All too often, groups fall prey to the thinking that database and list management is someone else's job. In fact, in any business or non-profit organization, it is everyone's job. While there may be a database and list manager, that person's role is to update and maintain files, not populate them. That job falls to the rest of the organization's staff, the board, volunteers, and even supporters.

T-minus 10 days!

Plans for this year's project: non-profit makeover are well underway. Already over 20 graphic design and communications volunteers have signed up to give the Champaign County Farm Bureau Foundation a new logo and a makeover of their website, letterhead, and business cards.

We are particularly pleased to have a special supporter for this day-long design-a-thon: L.A. Gourmet Catering, which will be providing breakfast and lunch to the legions of hard-working volunteers. Run by two dynamic and entrepreneurial Foundation scholarship recipients, Lauren and Annie Murray , L.A. Gourmet Catering offers fresh, gourmet, customized catering options from large banquets to boxed lunches. do good and the Champaign-Urbana Design Organization (CUDO) are delighted to have some of the Foundation's own program participants donate food for the day to make the event and its impact even more real. And Lauren and Annie were pleased to give back to the Foundation's efforts, for the crucial component that allowed them to make their dream a reality was the solid education the Foundation helped to provide through their scholarships. Since 1985, the Champaign County Farm Bureau Foundation has awarded nearly $500,000 in scholarships to students like Lauren and Annie who are pursuing careers related to agriculture.

On Saturday, July 10, this year's project: non-profit makeover will work its magic as representatives from the Foundation, do good, and CUDO gather at Surface 51 for a one-day "design-a-thon" to create a new Foundation logo, website, and business paperwork.

Watch for the exciting conclusion of project: non-profit makeover in the August 1 issue of Doing Good.

Champaign-Urbana          Springfield          Chicago

do good Consulting
URBANA OFFICE
201 West Green Street, Urbana, Illinois 61801
217-778-1687
dogood@dogoodconsulting.org
www.dogoodconsulting.com