Folly #64: Founder-Funded
A vision isn't a business model.
Many nonprofits were started by visionary individuals. No matter how brilliant, innovative or effective an idea, a nonprofit’s success depends on a founder’s ability to inspire others to support their vision.
Or, as Margaret Mead so famously said…
Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has.
“I want to start a nonprofit”
I hear this a lot. And my answer usually is:
Please don’t.
There are already over a million and a half nonprofits in the U.S.
Chances are that some organization is already doing something very similar to what you envision. Instead, think of how you can bring your skills to their work.
These folks are smart and well-intentioned. But raising money for a new nonprofit is incredibly difficult when you don’t yet have a track record.
Last week at fiddle camp someone heard I’m a fundraiser, and told me that a friend wanted to create a nonprofit to teach harmonica lessons to K-8 students. It’s a great instrument to learn! Better yet, it’s accessible and small. So much to love about that.
But absolutely no need to create a new nonprofit.
My recommendation was to find an organization bringing music into schools and offer to teach a class to learn harmonica.
“I’m funding our nonprofit’s work. For now.”
I offer free fundraising strategy calls with anyone who needs to brainstorm priorities. Over the years, I’ve talked to lots of folks who take the time and effort to become a 501c3 nonprofit organization, but are still funded mainly by one donor: the founder.
These are real examples:
An equine organization with a sole staff person and no active board members called me to help find “$4,000/month in donations” for basic operations.
A “really important” conservation project funded by one person launched before attracting any other donors or pledges of support.
An organization providing services that are very similar to another organization’s, has “several important differences” in their model, yet is not attracting sustained funding.
An environmental organization that’s like another one doing similar work in the same region “but different” is struggling for regular donors.
Sometimes the nonprofit provides services that the founder says are essential, and yet there is no client representation on the board. How do you know that your clients believe those services are important?
No matter how brilliant your nonprofit work is, it cannot be sustainable until you build a base of allies who believe in your mission.
That includes a board that helps with fundraising.
Many nonprofits are afraid to ask board members or volunteers to give “because they already do so much.”
Malarkey. Nonsense. Balderdash. Fiddlesticks!
Build allies. Build donors.
If you have a base of volunteers, they have already invested their most valuable resource – their time. Asking them to give money is the easy part. (On average, 85% of volunteers give, according to these great volunteering stats.) And they can always say “no” if they really don’t want to give.
“But our board includes business and community leaders who are just so busy. I can’t ask them to do more or they’ll resign.”
Good. Let them. One client had several board departures. Those were the people who were not able to give time and money. Fill their spots with people who have that intention. And ask for it.
I’m a huge fan of give-and-get, where every board member is responsible for raising a certain dollar amount each year, including their own contribution at some level. (Want a template for a pledge form for a nonprofit board you know? Email me.)
You cannot do this work alone. And you certainly can’t fund it all.
Grants may help. But – as I’ve recounted, repeatedly, here – they’re difficult to get, take a long time, and are not generally renewed. And they’re rarely the kind of unrestricted funding that will pay your salary as founder and executive director.
How much have others bought into your vision?
That’s an important litmus test for your nonprofit’s sustained social impact.
And it’s also one that foundations offering capacity-building grants and technical assistance can help achieve.
Therapeutic splash of cold water! Right on!