Soapbox Engage Blog

Are you thinking of starting a nonprofit? Fantastic! We’re always excited when someone has the passion and drive to make a difference in the world.

We’re always ready to cheer for a new generation of leaders. Of course, we’ve served our sector for nearly 20 years, so we also want to be honest and up-front about all the realities of starting a nonprofit. Launching a nonprofit can be fueled by passion, but the question is how much fuel do you have in the tank...and how long before you need to refuel it?

We’ve found that laying the right foundation, and going into the process with an open mind, tends to lead to the most successful organizations. Taking a slow, methodical approach at the beginning will help you avoid some potentially painful mistakes later. Here’s some questions successful nonprofit leaders have asked before starting a nonprofit.

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Important Questions to Ask Before Starting A Nonprofit

Long before you write your mission statement or receive your first donation, there are some questions that you need to answer. They aren’t always easy, but they’ll help you start an impactful organization and they may save you a lot of time, energy, money, and even heartache down the road.

1) What is your "why"?

This one might seem elementary, but it’s a critical question! If you don’t know why you want to start the specific organization you are envisioning, you might not be ready to take the next steps yet.

2) Who will you serve, and what will you do?

You might be surprised by how many people can tell you why they started their nonprofit, but cannot articulate what they want to accomplish or who they want to serve. In an era marked by increasing accountability, make sure that your organization plan is outcomes focused, delivering every step of the way on the promise of your mission.

You don’t need to have every detail hashed out, but you need to have an outline of how you intend to accomplish your mission.

3) Does the world absolutely need your organization?

This can be a hard question to ask because it might kill your vision. But, it’s better to go back to the drawing board than to create a nonprofit that isn’t needed. You must be needed by those you plan to serve if you want your organization to thrive and be effective.

Will the organization you envision serve a group of people that aren’t already being served? Will it create measurable change? Is there another nonprofit doing something similar? If another organization already exists, can you partner with them instead of competing for the same resources?

Even if your nonprofit isn’t meant to make a profit, you still need to adopt a business mindset and procedures. Businesses conduct surveys and do extensive research before launching a new product or service. Nonprofits should conduct a "needs assessment" to determine if there is a need for the products or services you propose to offer.

4) Do you understand what it will take to run an organization?

Starting a nonprofit is complex with many potential pitfalls and mistakes along the way. Establishing a new organization and building it to a sustainable, financially stable nonprofit is a tough challenge.

Just having a passion for a cause and wanting to make a difference in the world isn’t enough. Nonprofits require just as much planning, leadership, foresight, and knowledge about running an organization as any business!

Before you get started, take the time to understand how a charitable nonprofit is different from a for-profit business. Ask yourself if you have the right skills to run a successful nonprofit. Take an inventory: what skills with starting a nonprofit require? Which of those skills do you already have and what skills do you need to learn?

One excellent preparation step is to interview someone who founded a successful organization. Ask them as many questions as you can, including what skills they think you should have before you start your organization.

While this is by no means an exhaustive list, starting a nonprofit will require a wide variety of skills and talents.

• Good communication skills with a variety of audiences, from donors and sponsors to volunteers, the media, and the people you serve.
• Organizational skills for everything from event planning, stewardship, and volunteer organization.
• Relational skills: you will most likely need good networking skills and the ability to forge strong relationships with donors, volunteers, other organizations, and the people you want to serve.
• Flexibility: running a nonprofit is full of surprises and demands that you adapt, improvise, and think on the fly.
• Creativity: running a nonprofit of any kind usually requires you to think outside the box for fundraising, networking, programming, and everything else!
• The ability to say "no": you and your organization won’t be able to do everything or serve everyone. You will need to focus on accomplishing your specific mission and serving your specific target audience. That will require saying "no" to countless other really great things. (Trust us, this is more difficult than you might think.)

5) Are there better ways to accomplish your goal?

Starting a nonprofit from scratch might be the most complicated way to accomplish your goal or serve your community. It requires incredible amounts of time, energy, and resources. There might be alternative ways to achieve your goal with far less risk.

Are there other organizations serving the same groups or addressing similar needs? Even if the organization isn’t doing exactly what you want to do, it’s possible to partner with an existing organization to expand its services.

If you want a more autonomous arrangement, consider looking for an existing nonprofit to financially sponsor your vision.

If you are passionate and knowledgeable about a specific issue or cause, consider becoming a consultant in an existing nonprofit to help them expand or improve their work instead of starting a whole new organization.

6) Can you identify potential financial partners and volunteers?

Unfortunately, many people start nonprofits without the foggiest idea of how they’ll get enough funding. Start-up funds for nonprofits are often in short supply and it might be a few weeks or months before you are in a position to begin accepting donations. You might need to pay for some things yourself.

Spend some time identifying potential donors (individuals, corporate sponsors, grants, foundations, and other funding sources). Familiarize yourself with a variety of nonprofit funding strategies and outline a fundraising plan for your organization.

Your organization will likely need a nonprofit board of directors. Many nonprofits also choose to keep their costs low by starting with volunteers until they can afford to hire staff. Identify some people who are capable and willing to serve on your board of directors or volunteer some of their time.

Taking the time to answer these six questions won’t necessarily guarantee your success, but it will get you started on the right foot with a firm foundation and will help the rest of the start-up process go smoothly.

Here are three more resources to help you start your nonprofit.

• Everything You Need To Know About 501(c) Categories Before Starting A Nonprofit: There are 27 different types of nonprofit organizations in the IRS tax code. Each type has its own rules for tax-deductible contributions, lobbying, eligibility, and other things. This overview will help you understand the most popular types of 501(c) categories.
• 3 Affordable Website Builders Nonprofits Should Consider: Every nonprofit should have a well-designed website and a donation page. Most people want to go online and get more information about your organization or give online. You don’t have to shell out thousands of dollars to get a beautiful website! Here are 3 options for creating your website easily.
• Don’t Choose A Nonprofit CRM Without These 6 Features: After your website, a CRM system is perhaps one of the best tools for nonprofits. It will keep you organized and help you communicate effectively with donors and volunteers. This guide will help you choose the right CRM system for your new nonprofit.