3 things successful Nonprofits do before they file their paperwork

Read time: 3-4 Minutes

Throughout my own work starting a nonprofit – and helping advise dozens of others on launching or growing nonprofits – I’ve seen a few commonalities between the organizations that thrive and those that flop.

A few years in, the organizations that are thriving – making a big impact, securing funding – are the ones that did 3 things in particular before they even filed their paperwork for official nonprofit status.

Let’s jump in and take a look at those 3 things in this edition of (dun-dun-dun) Changemaker Mondays! ☀️ ☕ 🌍

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Here’s what they did:

1. They dug deep into the need.

Successful nonprofit leaders studied the heck out of the issue they wanted to tackle.

As a founder, your first goal is to dive deep into understanding the problem you want to solve. It can be easy to fall in love with a cool idea for a project or organization (trust me, I’ve been there), but let’s flip that script.

The most successful ventures – both businesses and nonprofits! – start with the need, not the idea. What’s really going on in your community? Who’s hurting, and why?

Here’s how you do that:

  • Hit the Books (or the internet) and the Streets: Read up, talk to humans, and get some feedback from experts who may have a lot of experience in the issue you aim to address. The more you know, the better you can tackle the problem.
  • Focus on the people affected: Who are in the target audience of those you’ll serve – the people who are most impacted by the community problem? Get specific about who you’re helping, all the way from age and situation to the geographical area you’ll be operating in – is it elderly neighbors living below the poverty line within your city? Kids ages 5-10 who can’t afford school supplies? Homeless dogs or cats across your state?
  • Connect the Dots: Take a look at how different social problems feed into each other. It’s all connected, like a big spider web of challenges. For example, if food insecurity among youth is prevalent in your community, that’s probably impacting their academic success, too. No social issue exists in a vacuum.

2. They mapped out their ecosystem.

The nonprofits that soared to success did extensive market research before launching.

Before you jump in, take a good look around. What other orgs are out there tackling the same (or a similar) issue that you aim to address? What services are they offering, and what are they not doing?

It’s important to get the lay of the land for a few reasons, including making sure you’re going to be meeting a need that isn’t already extensively met by other services, but also, because these other organizations might be amazing partners or collaborators in your efforts.

As you’re doing your market research, here’s what to think about:

  • Scope Out the Competition: See who’s already doing the work. You might find that the niche you thought was empty is actually pretty crowded.
  • Think Collaboration, Not Competition: Maybe there’s a way you can join forces with an existing org instead of starting from scratch. Other organizations might be fiscal sponsors, provide information or support, and more! You never know until you ask.
  • Spot the Gaps: If there’s a gap in services, that’s your sweet spot. Filling an unmet need will help set your organization apart while serving people in a way they really, really need!

3. They figured out the money parts.

Nonprofits who made it thought about their revenue strategy before they launched.

Just like a business, you’ve got to consider how you’re going to cover your costs at the same time you’re thinking through your programs and activities.

We can dream that we’ll get everything donated. But in reality, that’s rarely the case.

I remember one time years ago I was complaining that we couldn’t get a local business to donate their services for our fundraising event. A volunteer on our event committee (and a local business owner herself) reminded me: “These small businesses don’t owe you anything.” Ouch. But she was right.

Realistically, you’ll probably be able to get some things for free as a nonprofit. But it’s smart not to count on that. You should be building a budget – and a fundraising plan – that assumes you’ll have to pay for everything, just like any other business.

Here are some smart moves to make early on in planning your funding strategy:

  • Include everything you might need in your budget. It sounds obvious, but I’ve seen start-up budgets that accounted for all the programming needs – all the way down the cost of the actual food to feed hungry people with – but that left out all the important operational stuff you’ve got to have to create your infrastructure. Things like insurance. Accounting software. The less fun (but really important) stuff.
  • Set clear financial goals: Know how you’ll fund your day-to-day and your growth. You want to do more than just survive; you want to thrive and grow to meet the size of your mission. Think more than a year ahead, even at the beginning. How will your costs (and revenue) grow in year 2? Year 3?
  • Diversify your dollars: Don’t put all your eggs in the grant basket. The challenging reality is that grants are extremely hard for start-up nonprofits to secure, mostly because grant funders want to see some evidence of impact before they’ll consider a grant. Think about other ways to bring in cash—events, products, services, or donations.

In conclusion

Starting a nonprofit is about passion and preparation! By focusing on the gaps in services and community needs, understanding the existing landscape, and crafting a forward-thinking business plan, you’re setting yourself up for success. Remember, the goal is to not just start something but to solve something.

I’m rooting for you!

Resource Roundup

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Funding Opportunities

  • Due July 15: Walmart’s Spark Good Local Community Grants Program provides grants of $250 to $5,000 to local nonprofit organizations that benefit communities within the service area of Walmart stores, Sam’s Clubs, or Logistics facilities.
  • Due July 16: The American Fundraising Foundation supports nonprofits tackling arts, social services, youth, animal welfare, and health issues. Average grants $1,000-$25,000.
  • Due July 31: The Fransen Family Foundation provides grants of $10,000 or less to nonprofits supporting education, social services, historic preservation, or children and youth.

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Events & Programs

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Hey, Changemaker!

I’m Amber, writer of the Changemaker Mondays newsletter! I’m a nonprofit founder, speaker, and social entrepreneur on a mission to equip you with the tools you need to create positive change where ever you live — whether you’re starting a nonprofit or socially-conscious business, looking for a social impact job, or leading a volunteer project in your city. Don’t hesitate to connect (socials below), or reply to this email if you ever have any feedback on how we can make Changemaker Mondays the best newsletter for supporting changemakers in the world!