What It Really Takes To Run A Non-Profit Organization - Part I

Experience has taught me a nonprofit should be managed like a business. And though I’ve penned articles about these organizations, it occurred to me that I haven't given nonprofit management its due. 

ICYMI - The articles I did publish focused on board leadership, what to consider before joining a board, managing nonprofit employees and the benefits of starting a for-profit arm. 

In retrospect, addressing these topics may have put the cart before the horse. So, allow me to delve into the nuts and bolts of nonprofit start-up – how to get to the cart! 

What To Consider Before Starting A Nonprofit

Passion to do something about a perceived need often fuels the vision to start a charitable organization. However, many times, visionaries have no idea how to move forward. 

Step 1 –Create a statement that describes your vision. What would you like to see happen? Who will your efforts benefit? And why is your vision important? 

I’ll use the nonprofit I founded as an example.

Our vision statement was “We’re HERE To HELP envisions a time when higher education aspirations are a realistic and achievable goal for all students, regardless of ethnic, cultural, economic or academic circumstances.”

WHTH’s vision foresees the day when all students that seek higher learning (who) can pursue their academic goals (what) without regard to their economic or academic status (importance). 

Step 2 – Craft a statement that defines your mission. Your mission statement clearly and concisely describes what you will do, and how it will make a difference. It should communicate the importance and continuing relevance of your work.

Again, using WHTH as an example:

“WHTH’s mission is to guide economically and academically challenged students as they complete educational requirements needed to become valuable members of the workforce and earn gainful, living-wage employment.”

Our mission’s objective was to mentor students with average grades from low-to-moderate-income families as they pursued certification (what we wanted to do) that enabled them to earn a living wage (how it would make a significant and lasting difference).

What comes next is usually a surprise. 😮

Step 3 – Do your research. The number of charities has grown significantly over the years. Data from the IRS reports up to two million registered nonprofits. 

Therefore, my question becomes: Is there another nonprofit organization(s) in your area whose mission and/or vision aligns with yours?

Service overlap and duplication have led to a competitive market. So, before setting up shop, I suggest taking time to visit existing organizations to learn who offers similar services. This exercise will help you determine the pros and cons of competing or possibly reveal potential partnership opportunities.

I’ll add: partnerships can be difficult to manage. Egos and differences of opinion often cause complications. However, these arrangements can also work to provide improved or expanded community services, which should be the underlying goal of any nonprofit organization. 

I’m reminded of a friend, mentor and successful entrepreneur whose favorite quote was, “There is no need to reinvent the wheel.” 

Stay tuned. Part II will offer next steps and more insight into nonprofit management considerations.