Starting a nonprofit with the right principles

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Under what circumstances is new nonprofit actually useful?

  • You want to get something done in the world that can't be supported (entirely) by a market-based business model, you need grants or charitable donations to support it.
  • Nobody else is doing it right.
  • You want independence / control over your own destiny in your work to do it.

If none of the above is strictly the case, you might not need a new nonprofit. (Fiscal sponsorship is an option for the first two if you don't really really really need 100% of the third).

What is on the path from idea to launch?

  • Write down your idea: vision and mission. Values and principles. Challenge and opportunity / problem and strategy. Write out everything but then produce a summary that is as concise as possible – one pager.
  • Talk to people about your idea: Share your summary and get feedback on it.
  • Revise and repeat. Iterate through the process of refining your idea.
    • As you go, get input on: what skills do we need to succeed? Who can help us succeed?

Conduct this process through concentric circles in your network:

  • Circle 1: Friends and trusted collaborators. Safe space to get candid feedback and practice.
  • Circle 2: Subject matter experts, people who understand the field and who are willing to talk to you.
  • Circle 3: People who have resources or have influence over people with resources. People you will ask to commit / support.


Iterate up through these tiers, refining your idea as you go and building your map of the landscape / prospective supporters. Get buy-in/momentum -> Build your inner circle -> do the paperwork.

What are Boards / What could Boards be?

  • Fiduciaries.
  • Fundraisers.
  • Oversee ED.
  • Hold the vision
  • "Free" legal counsel and other important skills.

> Problem is that VIPs / people with access to capital often are removed from the work / from the needs. So they make governing decisions that are not aligned with the values or not informed by the realities.

COULD BE:

  • Representatives of users / clients / members, to better understand the problems and make better governing decisions. Not just as tokens, but as a majority of the board?
    • (Note that many state laws prevent a certain number of board members from getting paid by the org)

Helping boards make better decisions: scaffolding.

  • What information do they need, and how should we give it to them? (occasional meetings aren't sufficient, but they won't do a lot of reading in advance!)
  • Training
  • Job descriptions

Reimagining boards as representative, without losing access to the skills / $$:

  • Establish an Advisory Group or Advisory Groups that can contain people with access to capital, major donors, lawyers, etc – so you get their input / help, but don't count on them to make governing decisions. This group can inform the board. (This is an inversion of what often happnes, which is that the clients/users/community-mambers are on Advisory Committee, and give non-binding input to Board.)

What are the elements of non-profit infrastructure?

  • Payroll
  • Benefits
  • Insurance
  • Legal
  • Accounts Payable / Receivable
  • Contractor mgmt
  • Contracts
  • Bookkeeping
  • Technology
  • Tax filing

How much of this can be provided by fiscal sponsors?

How to hold fiscal sponsor accountable?

How can we fundraise strategically / ethically / successfully?

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