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HOW TO START A LIFE-CHANGING NONPROFIT

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What you must know before starting a nonprofit- Part 1: Structure

8/28/2020

2 Comments

 
I have spent my career in nonprofit planning and administration.  I’ve been involved in the early start-up of five charities and now specialize in helping nonprofit start-ups succeed. There are many urban myths about the nonprofit sector.  It’s almost as bad as losing weight or having a baby.  Everyone may be entitled to their opinion, but wouldn’t you rather be operating from facts?

We at Thrive South have no desire to deter anyone wanting to serve their community.  But, much like the medical field, there is a lot at stake when caring people try to help others.  Well-meaning but knowledgeable people offer poor advice and founders often put too little effort into planning before filing legal paperwork.  Then, they are not prepared to be fiscally responsible, legally compliant, and mission focused.      

Read on to see some big misconceptions about how a 501(c)(3) charity is formed.  You’ll find that some charities don’t follow these guidelines. Sometimes, leadership may be breaking the law.  In others, they may not know better, or they just don’t care. ​
  1. A nonprofit’s founder is not its owner.  No one owns a nonprofit. 
  2. A nonprofit must have a board of directors.  After the board is established, it is the legal governing entity of the organization.
  3. The founder of a charity can be a volunteer Board Member, they may serve as a volunteer or paid executive director, or they may step away and have no role.
  4. If a founder serves as the Executive Director, they still report to and are governed by the Board of Directors.  Yes, the Board of Directors can fire the founder and hire a new ED.
  5. The Board of Directors has legal obligations in their oversight of a nonprofit organization.  One obligation is to act in the best interest of the organization and to serve without conflict of interest.
  6. Many new founders start their charity with friends and family on their Board.  This is not recommended and there are many reasons why this is actively discouraged.
Here is some bad advice new founders often hear:
  • You don’t need a Board of Directors, or you can just ask anybody to serve.
  • The Board doesn’t have to do anything but come to some meetings
  • When you are forming your legal documents, just copy some stuff off the internet.  You can change it later.
Subscribe to learn the legal, life-changing way to get started. Or, shoot me an email at kmassey@thrivesouth.com. 
2 Comments
Cynthia
10/14/2020 10:21:51 am

I feel great reading and going through the text. I like the fact that I see like minds sharing same dream and aspirations as I do, though we not from same continent and country so you can help me go about having my own social impacts but I sure it really motivate me so I can start from somewhere.

But the question I have is this, does that mean that for one to start social impact, one must be financially stable so as to for see it cos am a student but being part of social impact has been my dream and goals. How do I go about it please??

Reply
Kimberly G Massey link
10/19/2020 12:23:22 pm

Hi Cynthia, Thanks for the post and for the question. A nonprofit, as with any business, it's always good for the founder to be in good personal financial position because it takes stress off of an already stressful situation. However, many founders start a charity when they are working another job or during a time in their lives when their income needs are less than at other times.

I am also working hard to show founders of new charities new methods of starting their charity and begin fundraising quickly. Therefore, a nonprofit that is well-planned would have the potential to begin earning income and providing services much more quickly than one that struggles for a while at the beginning of start-up.

Reply



Leave a Reply.

    Mentor Kimberly Massey

    In addition to my work in the social impact field, I have a great husband of 27 years and  an incredible 20 year old daughter.  Our family lives in central Mississippi and we provide a loving, but sometimes chaotic home to two awesome dogs and a turtle.  

    I don't know any other way to describe my interest in social issues, equity, and health improvement other than "passionate."  I am imperfect but believe in forgiveness for myself and others.  I believe that if you care about a person or issue, you should never give up.  I have been described as tenacious, but it may not have been a compliment.

    Please, join in with your thoughts, questions, or cares.  We are all in this great world together, and we are better for walking the journey as friends.


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