Nonprofit Dreams

When I was in high school, I told my dad I wanted to start nonprofits for a living.  I didn’t really have a preference for what they should do, it just sounded like fun – and meaningful, too, of course.  Since then, I’ve met a number of accomplished, enthusiastic college students and recent graduates who express a similar dream (if perhaps without the serial component).  At a glance, this seems like a good thing, like evidence of a generation of do-gooders set on saving the world.

That was before I learned more about the rapid growth of nonprofits in the past 15 years, an increase with which the growth in funding hasn’t kept pace.  Before I realized the number of tiny nonprofits out there doing essentially duplicative work, each caught in its own silo.  Before I thought about the lost opportunities for economies of scale, when each of 100 small nonprofits is paying 100 executive directors, buying 100 copy machines, and renting 100 offices.  I realized that my high school dream, and that of many of my peers, treated nonprofits like ends in themselves, rather than means to the ultimate ends of social impact.  I began to believe that our generation, having applied to college in an era in which compassion and leadership ability were the twin stars of a shining application, was manifesting its drive to achieve public success in the impulse to start a nonprofit – any nonprofit – as soon as possible.

Then at a lunch several months ago, I sat next to a more seasoned grantmaker and mentioned my thoughts on the matter.  I argued in favor of economies of scale, and he replied with warnings of bureaucracy, pointing out that small, local organizations know their communities far better than any large, national nonprofit ever could, and that what they may lose in efficiency, they may make up for in their ability to provide a superior service.  His argument made sense, and while I was still concerned about the social-entrepreneurship-for-its-own-sake trend I suspected might exist, I was willing to believe that a nonprofit need not be entirely unique to be a worthwhile start-up.

It was against this backdrop that I attended the Craigslist Foundation’s Nonprofit Boot Camp on in June.  At an event for “emerging nonprofit leaders and social entrepreneurs,” I was among a crowd likely to have an opinion on the matter.  And indeed, the speakers did – for the most part, a very even-handed opinion that resonated with both side of the argument that had seemed convincing to me. 

Ami Dar, the Founder and Executive Director of Action Without Boarders (which may be familiar to may of you by the website it runs, Idealist.org), urged audience members to go ahead and start a nonprofit, even if it does duplicate existing efforts – so long as you think you can do a better job than what’s already being done.  He cautioned such founders to take care, though, to understand the field; if you’re going to “step on someone’s foot,” be aware of it before you do it.  He also suggested that would-be founders “Be honest with yourself about why you want to start a nonprofit” – good advice if my theory about the lingering impact of college admissions standards is correct.

Darian Rodriguez Heyman, the Executive Director of the Craigslist Foundation, also gave advice I was happy to hear:  “Seek first to cooperate, then to lead.”  Rather than starting a nonprofit right away, he suggested, learn more about what is already going on in the field and how you might be able to collaborate.

I’m certainly not against social entrepreneurship.  It’s only through such start-ups and innovations that we’ll find better, more effective ways of creating change.  I’m glad that my peers are so ambitious and motivated, and I look forward to the many new ideas we will bring as we more fully enter the public sphere.  I would simply echo Dar’s advice on introspection, and add that, as we generate these many new ideas, we consider whether starting a nonprofit is in fact the most effective way to make them happen. 

In her breakout session at the conference, entitled “So You Want to Start a Nonprofit?” (which attracted a packed house, I might add), Pat Richter of PRQuickhelp Nonprofit Consulting outlined two alternatives to consider before applying for that coveted 501(c)(3) status:  Consider functioning as a program under an umbrella nonprofit; Richter cautioned that this has the potential disadvantage of reduced control and a lack of separate identify.  As another option, arrange a fiscal sponsorship under an existing nonprofit.  This, she explained, allows you to benefit from the sponsor’s 501(c)(3).  If you choose this path, Richter recommended ensuring you have a formal agreement.  She also pointed out that your organization’s mission must fit with the sponsor’s, and that, in many cases, fiscal sponsors receive some portion of your organization’s revenue.

So, today, I no longer want to start nonprofits for a living.  I have a few ideas bouncing around in my head, but if I ever choose to pursue them, I no longer think that establishing an independent nonprofit is necessarily the best way to achieve my goals – because the nonprofit itself is no longer the goal.  My plan is, after I’ve become more educated about the issues that interest me, if I still believe my ideas could have a positive impact, to identify other people and organizations working in the same space, and to seek out opportunities for collaboration.  You may be at that point right now, sure of yourself, your concepts, and your capacity to bring something new or better to the sector.  If so, I would encourage you to do so, and also to look around to see how you and some of your fellow social entrepreneurs might be able to help each other succeed.

Jessica Stannard-Friel is a Director in the Philanthropy Division of Changing Our World, Inc., which assists corporations in designing and implementing strategic philanthropy programs. Jessica is also a co-editor of FLiP, and the co-editor of FLiP’s June/July Issue entitled: “The Ask”.

Comments

[Elisabeth Anderson]

Great piece, Jess! From my own experience, I'm compelled to support Richter's first alternative to starting a new nonprofit. When I was a development volunteer for an international adoption/family services agency (way back in high school), I saw an unmet need in getting supplies to the kids in certain South American and Eastern European orphanages. Having not the time, money, (nor, at age 16, the know-how!) to create an independent entity, I received a lot of internal support to start a specialized program, International Angels. IA let me focus where I wanted to focus - all the while tapping into the agency's expertise and resources. I realize it's a bit different now that we're adults, with real careers to consider, but if the desire is to make a full-time impact on a more part-time/recreational basis, developing a program may be the way to go.

[Lonny Strum]

Good piece, Jessica. Well written. Insightful on the realities of starting a non profit. Once one get past the idealism, non profits are real business with real business issues.