The Top 5 Mistakes to Avoid When Launching A Nonprofit

I was recently coaching an individual who had an incredible experience.  While visiting a friend at an out of town hospital, she saw an amazing arts program and its impact on the patients.   She was inspired, eager to launch a similar program in a local hospital and wanted my thoughts on how soon she should get her 501c-3.  I’m always in awe of individuals with such passion, courage and conviction. At the same time, having gone through the experience myself several years ago, I knew there might be a step or two in-between.  Fortunately, she was well-grounded and we agreed there were just a few other things to do before forging on to her IRS designation. 

The moment we are hit with an inspired idea is priceless.  At the same time, we need to be forward thinking about how we put it into action.  As such, here are 5 of the most common mistakes to avoid when launching a social endeavour.  I’ve also offered solutions and hope you find them helpful:

1. Thinking passion is enough: There’s much to be said for passion.  But taking that epiphany and moving it from the dream stage to a living, breathing organization that is executing on a mission is hard work.   I have no doubt that anyone determined to make a difference can do just that. Just be ready to do some heavy lifting while dreaming your big dream.   
2. Assuming you need to launch a nonprofit organization: I’ve met many amazing social entrepreneurs and one thing they all have in common:  they see launching a 501c-3 as a critical goal. I’m not saying it isn’t. I am, however, suggesting that there are times when it might not be necessary.  Your idea might work as a program with an existing nonprofit. Or you might do well being fiscally sponsored. Explore all options before moving into the 501c-3 zone. 
3. Failing to Plan (and in essence planning to fail):  Cliche I know but true.  Understand how your vision translates into an actionable and fundable program with a beginning, end and reportable results. This is critical if you’re going the 501c-3 route.  For example, when I started my nonprofit Teens Run Westchester, I just wanted a program where adults partnered with teens and ran. I was fortunate to have a pro bono attorney who helped me map out a program, mission-driven activities and measurable results.
4. Recruiting family, friends and close contacts as your starter board:   In my opinion, this is the leading killer of new nonprofits.   It leads to lack of vision, work and worst of all, an impossible fundraising situation.  Can you hear it? The sound of that enthusiastic founder telling his friend “I just need you to show up at meetings - don’t worry about the work or fundraising.”  Don’t this let this be you! Start with the right board members - even a small group - and you’re building from strength.
5. Thinking you’ll wait to start fundraising:  There is no time like the present to start your fundraising.  Well, that’s not totally true. The minute you have these two things in place, you should start fundraising:  1) You have a program that has the ability to impact lives - whether one or thousands and 2) You have a legal entity that can accept donations on your behalf.  Don’t wait till “you really need the money”. You have a mission and you need funds to make it happen. 

​I hope avoiding the above will get you off to a good start.  If you want to hear about a few other things to avoid or I can help, please let me know.