It’s one thing to have hobbies and interests; parlaying them into a nonprofit organization is another leap entirely.
Expansion is an easy concept to imagine but a difficult one for most of us to execute.
In a hobby or interest group’s case, it’s tough to identify the right time to venture into nonprofit status. For molecular biologist Nina Dudnik, her epiphany started when she was studying rice in Ivory Coast. Conducting research in a developing country without enough equipment proved challenging, so after she began her Ph.D. program at Harvard University, she and a few fellow students collected extra supplies and equipment to send to labs in developing countries.
From that effort sprang a nonprofit venture that eventually became Seeding Labs, a firm that trains scientist and provides equipment to developing nations. Dudnik’s idea sprouted from a cause she had personal experience in, and she quickly found a way to translate it to a broader scale.
So how can an interest group widen its scope into a serious nonprofit? It starts with identifying the desired end goal and detailing the steps necessary to arrive there.
What Giving Gets You
When looking to invest more time and effort into a cause, going the nonprofit route makes sense. Nonprofits are highly credible entities that can exert social influences on broader audiences because a nonprofit donation elicits a stronger emotional response in the giver than spending money at a for-profit, even if the end result is the same.
Nonprofits are also eligible for certain federal tax exemptions. Provided they agree to be audited, corporate income tax is waived, and that money can be reinvested into the organization. Additionally, state and federal governing bodies and some private groups also offer nonprofit tax credits for nonprofits, so even if a nonprofit owes some taxes, these credits give organizations other options to stretch their operating budgets.
When homing in on a nonprofit cause, start with pinpointing a mission that’s the company’s sole focus. You’ll be fighting for a share of limited charitable giving, so don’t make your efforts more difficult by taking up a cause that another group has already embraced. Both the group and the cause itself would likely suffer.
Next, make sure interest is sufficient and funding is locked in. Ensure that the resources and support for your initiative are in place and that your plan of action is clearly outlined. This will help convince potential donors you’re a good candidate for their contributions, which most people don’t give out easily. In the long term, nonprofits need business plans that minimize operating costs to ensure sustainable organizations. Getting your group to that next step isn’t easy, but the benefits are tangible.
Make a Nonprofit Pivot
If transitioning your group to a nonprofit seems like a good fit, these to-do items will help make the process as smooth as possible.
1. Network as much as you can. Your nonprofit’s effect is only as strong as the people advocating for it. Make sure as many influential people know about it and talk it up as possible.
Take an active approach to networking. If you attend an event such as an NGO conference, think of questions ahead of time and share your plans with your organization. Whenever possible, get feedback from people who are already well-established in your group’s field of interest to figure out the best course of action.
2. Research regulations. Regulatory requirements may sound like a chore, but you’ll need to know how they work to understand the legal side of the transition to a nonprofit. Regulations are not only complex and different from state to state, but they’re also constantly changing.
Even though you’re passionate about your group’s subject matter, consider taking a class at a local college to get the most up-to-date guidance on your specific situation and how to get any compliance issues squared away. Setting up your nonprofit only to find it doesn’t comply with certain legalities isn’t the best way to get it off the ground.
3. Work with an accountant. Embrace the first lesson of nonprofits, and get ready to get lean. Utilize an accountant or financial advisor, and make sure that person has experience working with nonprofits.
These professionals identify specific steps a nonprofit will need to take in order to best protect itself financially. For instance, not-for-profits should create a statement of financial position instead of a traditional balance statement, or a statement of activities detailing revenue and expenses instead of an income statement.
Fundamentally, nonprofits are created to meet specific societal needs. If your group has the drive and resources to merit pursuing the advantages afforded to a nonprofit, take these steps to heart and take your cause to the next level.
Why Efforts to Hire and Maintain the Best Staff Can Be Critical for Nonprofits
While a well-seasoned and dedicated staff can be a terrific resource for any business, hiring the right professional to fill a position can be an even more important concern for nonprofits. Lacking the funds and additional resources of their commercial counterparts and competitors can place many nonprofits at a distinct disadvantage. By addressing the issues and specific problems that those employed by a nonprofit are most likely to encounter, employers may be able to minimize turnover and transform their existing staff into their greatest asset.
Drive, Dedication and Vision
Professionals whose ambition only extends to themselves can a major liability for nonprofits. Without the need to build value for their shareholders, nonprofit organizations must rely on their staff to provide them with the vision and drive they need to be effective. Pairing workers who are dedicated to an idea that is greater than themselves with an organization able to provide them with the agency needed to make a difference can be of paramount importance, especially for nonprofits who have suffered from lackluster performance or that may have begun to stagnate.
Generating Momentum and Inertia Internally
Employees, workers and professional associates who are able to generate the momentum needed to enact real and lasting change are often the heart of any successful nonprofit. The conventional business models that are so often utilized by commercial businesses place often place the bulk of their focus on the mid and upper-level managers and supervisors who are tasked with creating and implementing new policies. Nonprofits stand to benefit by shifting their focus to the workers who do the actual heavy lifting and who take on the more mundane day to day tasks. Dedicated workers can provide their employers and organizations with the momentum and inertia they need in order to continue operating effectively.
Going the Extra Mile
Finding employees who are willing to go the extra mile can be a difficult proposition for any organization that lacks the funds and financial resources needed to provide a more competitive salary. Individuals who are committed to reaching loftier goals or unlocking their full professional for reasons that extend beyond mere financial reward are not a resource that nonprofits can afford to take lightly. A little extra effort is often the missing component when it comes to finding solutions to a stubborn problem or overcoming an obstacle that might otherwise end up limiting other opportunities and future success. Workers who are determined to keep their organization going and employers who need their employees to give it their all both need to understand the value of going the extra mile.
Optimizing Existing Resources
Having to make due with shortages of finances and other key resources is often a concern that is all too familiar to many nonprofit organizations. While boosting efficiency and finding ways to curb waste can help commercial organizations to enjoy greater profitability, such efforts are often essential for ensuring the very survival of a nonprofit. Whether it’s finding the best accounting software for nonprofits in order to ensure more accurate bookkeeping or identifying the ways in which financial resources may be best utilized, making the most of their existing resources is a concern that organizations would do well to prioritize.
Long-term Success Begins During the Hiring Process
A nonprofit is only as good as its employees and being able to identify the right fit or a good match often means a great deal. For employers, educating prospective employees and applicants regarding the nature of nonprofit work is often a smart move. Applicants, candidates and even unpaid volunteers who wish to see their organization succeed need to recognize that their passion, aspiration and drive can often be just as important as any skills or expertise they may bring to the table. Cultivating the right staff and making the most out of their existing employees can allow organizations to more easily overcome the obstacles created due to limited funds and resource scarcity.
The Y Wants Everyone to Take a #SelfieWithSomeoneNew
Today, the YMCA of the USA (Y-USA) is launching a new social media campaign, #SelfieWithSomeoneNew. Inspired by the Y’s new “Us” national campaign creative, #SelfieWithSomeoneNew is an opportunity to highlight how the Y uniquely brings people together. To help raise awareness for the campaign, the Y will partner with long-time member and supporter, actor Ethan Hawke.
The Y is encouraging people to meet someone new, strike up a conversation and discover what they have in common, then, take a selfie and post it to Facebook, Twitter or Instagram using the hashtag #SelfieWithSomeoneNew and tag @YMCA.
Whether it’s a new neighbor down the street, a parent at your child’s school or a person you see every day on your commute home, the Y hopes people will take a few extra moments to get to know one another in order to build a stronger, more connected community.
To encourage participation, the Y is partnering with Oscar-nominated actor, Ethan Hawke, a long-time Y member and former Y camper. To help drive momentum, Hawke will be taking a selfie with someone new at his local Y while encouraging others to do the same.
“I am excited to support the Y and help shine a light on the work they do,” said Hawke. “They are so much more than a gym. They create community. I started going to the Y as kid when my parents didn’t know what to do with me all summer. Since then, the Y has been a staple in my life; my refuge when I am an out of work actor, or the place that has taught my children to swim. I hope we can raise awareness about everything the Y does in communities all over the country.”
Because of the Y, people who may not have met otherwise, come together, whether they are kids in an afterschool enrichment program, adults in a cancer survivorship group or families volunteering. These are natural and easy ways for people to find commonality and even unity among perceived differences.
“For more than 160 years, the Y has brought people together – no matter their differences – and helped build stronger, more connected communities,” said Kevin Washington, President and CEO, Y-USA. “#SelfieWithSomeoneNew is a great way to illustrate how we can all take small, but meaningful steps towards unity with something as simple as a photo.”
— The Y (@ymca) September 26, 2017
The Y is one of the nation’s leading nonprofits strengthening communities through youth development, healthy living and social responsibility. Across the U.S., 2,700 Ys engage 22 million men, women and children – regardless of age, income or background – to nurture the potential of children and teens, improve the nation’s health and well-being, and provide opportunities to give back and support neighbors. Anchored in more than 10,000 communities, the Y has the long-standing relationships and physical presence not just to promise, but to deliver, lasting personal and social change. ymca.net
For more information on how to participate in the Y’s #SelfieWithSomeoneNew campaign and to learn more about the Y’s “For a better us.” campaign, visit ymca.net/forabetterus.
How Disability Culture Can Inform Mentoring Girls with Disabilities
I am a social work intern at the Big Sister Association of Boston. This is a unique organization, as it is the only gender-specific branch of Big Brother Big Sister in the United States. This is also an important fact as research suggests that girls experience mentoring relationships differently than boys do.
Additionally, research suggests that girls have gender-specific needs that can best be addressed by gender-sensitive support. One of the values of the Big Sister Association of Boston is cultural responsiveness, as the agency finds it important to learn about and embrace cultural differences – and this is where Disability culture comes in.
Disability social workers Romel Mackelprang and Richard Salsgiver discuss the emergence of Disability culture and assert that it is not only an identity but a ‘way of life,’ similar to race or ethnicity. I feel that it is critical that when conceptualizing how to be cultural responsive that Big Sister mentors keep Disability in mind as a type of culture. Recognizing Disability culture is important because we work with Little Sisters ages seven through twenty, as well as volunteer Big Sisters over the age of eighteen, and any of these girls and women may have a disability.
In addition to being aware of the language and history of Disability culture in order to show respect, we must also understand that there is a community aspect of Disability culture that can have great social benefits for the people we work with. The goal of our mentoring program is to strategically match girls with mentors who have similar interests and experiences as them. Therefore, making an effort to match girls and mentors with disabilities can have the added benefit of sharing an understanding of a common experience and culture, therefore making the match relationship even more impactful.
In their book, Romel Mackelprang and Richard Salsgiver share the story of Carolyn and Marnie, two women who met and “developed a sisterhood formed from shared circumstances….their self-concepts and meanings they ascribed to their disabilities were similar.” Further, the authors note that Carloyn and Marnie had “few or no role models with disabilities, their disabilities were defined as negative, shameful…were isolated from others like themselves.”
The concepts of sisterhood and community are two more of the Big Sister Association of Boston’s values, and increased confidence is an outcome goal held by the program. As the relationship between women can be so powerful, it is important that Big Sister staff recognize this potential and thoughtfully seek to make matches between women and girls who share experiences as people with disabilities.
Big Sister Association of Boston values gender-specific programming, and it is important that this specificity carries over when thinking even further about what it means to not only be a girl, but to the intersection of being a girl with a disability in our society.
One way that Big Sister staff can work on developing knowledge about Disability culture as it relates to girls could be perusing the Gimp Girl website. As a refresher, the Georgetown Health Policy Institute defines cultural competence as “the ability of providers and organizations to effectively deliver health care services that meet the social, cultural, and linguistic needs of patients.”
The Gimp Girl website can be used as a resource for Big Sister staff to assist them in the task of continuously working on their cultural competence by becoming fully informed about the views and needs of girls with disabilities in particular. As a non-disabled person, I have permission to access articles and presentations on the site and join their online public forums. The website also includes links to many blogs written by and for girls with disabilities, which can raise awareness of the most current issues and interests of this particular community.
Tuning into Gimp Girl can help me practice cultural responsiveness by making me aware of the issues and concerns of interest to this population in order to most effectively meet the needs of girls with disabilities in a respectful and accessible way. Realizing that some people might prefer the term ‘gimp’ to the term ‘disabled’ might be important for Big Sister staff to realize vis-à-vis the debate between whether to use person first or disability first language.
The website will also help staff to practice cultural humility by reminding them that girls with disabilities have distinct and individual needs, as they describe what it means to experience the intersection of gender identity and disability. Reading about girls’ varying experiences will encourage Big Sister staff to consistently check their own biases and assumptions as well as maintain their position as learners when interacting with girls.
In addition to increasing any given Big Sister staff members’ knowledge and awareness about Disability culture, staff will also be able to share this website with Little Sisters if they are not familiar with it. Our agency constantly provides Big Sisters with information, resources, and activities they can use when spending time with their ‘Littles,’ and this website could be a great resource.
Big Sisters could explore the website with their Littles to find blogs that their Littles can relate to, or even help Littles join a Support Meeting in the online chat room. I think this resource is something that can benefit all of our staff and the girls and women we serve – and perhaps this will be true for you as well!
NBC Nightly News Headline on the American Red Cross is Deeply Misleading
Recently, NBC Nightly News with Lester Holt headlined a story entitled “American Red Cross Fails to Pay Funds Promised to Many Harvey Victims”. The report discussed the failure of the American Red Cross to disburse funding to the victims of Hurricane Harvey. As a volunteer with Red Cross, this report raised my concerns for several reasons, and I immediately contacted them in order gain some insight into the causes preventing the Red Cross from distributing emergency funding.
According to the American Red Cross website, the primary function of the charity is “providing relief to victims of disaster, blood to hospital patients, health, and safety training to the public, or emergency social services to U.S. military families.” For more information on how the American Red Cross spends its donations, you can visit their website. After speaking with staff, I am now able to provide some clarity on the issues causing the delay with the disbursements.
The website crashed from the 1 million displaced people trying to access it (plus repeat tries). Not only is the Red Cross attempting to aid those displaced by Hurricane Harvey, they are also handling an equally major crisis in Florida due to Hurricane Irma. Both Hurricanes have left a destabilized communications infrastructure with limited wifi and cell phone access in which to process aid. Everyone in flood areas is also still fighting the shaky access and embattled communication infrastructure in place. Many residents were showing up at the Red Cross HQ in hopes of gaining connectivity through the Red Cross. Unfortunately, the office has been experiencing the same connectivity issues.
Headlines about “High Overhead” feed into Confusion for Donors
When donors don’t understand that upgrading systems and IT staff, hiring volunteer coordinators and trainers, and other administrative staff duties are necessary to make it possible to handle 1 million plus displaced victims in multiple disasters at the same time, it breeds confusion and misinformation. The American Red Cross is not a governmental agency, but it is responsible for the bulk of relief efforts when a disaster happens. With Congress continuous cuts to FEMA, the American Red Cross will not be able to continue mass scale relief if they are denied donor support due to misinformation. This is a dangerous way to share information about life-saving charities. Without the American Red Cross, who else is equipped to handle natural disasters on this scale?
The $400 funds allocation from the Red Cross is an attempt to fill the gap that insurance and governmental delays create for desperate families. However, the reality is that it is dangerous to have volunteers standing on street corners handing out cash. However, this crisis may help the Red Cross identify innovative ways to distribute funds to help expedite funding to families. Currently, funds are being distributed to local centers like Wal-Mart for a more orderly disbursement. However, each disbursement center in affected areas is also still dealing with their own infrastructure issues.
— American Red Cross (@RedCross) September 18, 2017
At the end of the day, the American Red Cross is an organization run by 90% plus volunteers working at least 15 hours per day in harsh conditions because they want to help others. More paid employees would help with consistency and efficiency (deployments are only weeks long), but it would also create higher overhead in which donors don’t want.
With all of the disaster pile-ons we are experiencing with even more looming in the distance, we need to take a good look at our charities and how we expect them to function like a governmental agency or corporation while relying on donor support. How does the Red Cross run operations that cover a million people in a single disaster without the funding to hire people at salaries that will attract those with the talent and the willingness to risk such public scrutiny?
How to Grow Your Nonprofit With Little Budget
It should come as no surprise that devoting time to a cause can be fulfilling. When you start one of your own, you will transform your life.
But establishing a nonprofit to take up said crusade comes with lots of barriers, namely financial. Traditional businesses often must figure out where the money will come from to make their vision a reality, and nonprofits are no different.
For nonprofit leaders with know-how and ideas but scarce financial capital, it’s an uphill battle. But it’s those who recognize their new nonprofits’ non-monetary value and how to translate that into viability who can bring those causes to fruition.
A Little Marketing Goes a Long Way
What nonprofits lack in budget, they more than make up for in positioning and branding. Organizations can mask their financial shortcomings by properly marketing each themselves and spotlighting who they are and what they can do.
That starts with communicating your purpose or company “brand.” Identifying your brand lets people know who you are and what you can do for others, which can go a long way in creating long-term relationships. From there, you want to avoid potential conflicts of interest or even the appearance of one: As owner, officer, or director, you should never personally profit from any transaction with your organization.
Once you’ve settled those things, you can market your nonprofit to its fullest potential. The next step is to take those attributes to events and platforms that feature opportunities to rub elbows with financiers with values similar to your own.
For nonprofits with limited funds, I suggest looking to corporations to sponsor a campaign. Dress for Success, for example, held a “clean your closet week” by asking professionals to donate clothing, and the campaign generated $400,000.
And when you find an actual sponsor, it can be a useful way to find other organizations that align with your mission. Let’s say you connect with a corporation known to work with homeless youth. It’ll have relationships with many other corporations that work with this same service sector, which can establish a ripple effect.
Do Good on a Discount
Outside of knowing how to sell your cause, the following tips are useful to help your growing nonprofit continue to scale:
1. Think intangible. When you’re on a tight budget and don’t have money to involve your nonprofit in initiatives requiring a cash investment, start off by marketing non-financial resources, such as your time and industry knowledge.
Not only will it provide your organization some much-needed exposure, but it’ll also give you and your other teammates a better idea of the work involved and a brief overview of your chosen nonprofit sector. Plus, it’s not a bad way to make connections.
2. Give in to the youth movement. Look for volunteers at area high schools. Talk with the local school councils and ask whether it’d be possible to create a partnership that would allow teens to volunteer for a school credit or as an extracurricular activity.
Position the volunteer opportunity as a way for teenagers to prepare for the future. After all, volunteering improves not just communities, but also participants’ social and communication skills. In fact, they often reap better advantages at college and on down the line.
3. See how the pros do it. Follow the activities of larger nonprofit and nongovernmental organizations. Check with international organizations like the United Nations; you may find opportunities for involvement and gain access to their funding pool.
Take NeedsList, for example. The online platform was created to help small grassroots groups connect with NGOs across the world in need of shoes, SD cards, and other supplies. Donors can choose to donate goods, money, or time, which brings us full circle.
As the adage goes, it’s not what you know but whom. No other sector exemplifies this more than nonprofit. For foundations on a shoestring budget, make connections, think about what you have to offer, and deliver on your purpose each step of the way. Then, you can let your personal transformation begin.
How to Get Rid of Your Student Loan Debt While Working at a Nonprofit
All across the country, graduates are taking advantage of various loan repayment programs to help lower their monthly payments and improve their lives. If you plan to work for a nonprofit or in the public sector, it’s smart to explore all of the loan repayment options in front of you – including loan forgiveness.
When Michelle Argento graduated college with $25,000 in student loans, she knew the path forward wouldn’t be easy. As a music education major with little earning potential, she was right to worry about her new $290 monthly payment.
Fortunately, Argento started learning about the federal income-driven repayment programs available right away. And once she qualified for Income-Based Repayment (IBR), she watched her new payment shrink to just $27 per month.
While Argento’s situation has changed over the years, she still benefits on a sliding scale. A marriage and a toddler later, she and her husband pay $350 per month towards their $40,000 in combined student loans. If the couple were on the Standard Repayment Plan, she would owe more like $690 per month, she said.
Instead, the $340 per month they save has meant less stress and more opportunity.
“Having been on IBR for now six years, I have never, ever felt crushed or overwhelmed by my loans,” said Argento. “That flexibility also means being able to take risks in my career by moving to owning my own business, being able to splurge a bit on experiences such as traveling to Europe, and considering going back to school while continuing paying down debt.”
The icing on the cake, however, is that income-driven repayment plans like IBR will forgive any remaining after 20-25 years of payments (assuming there’s any debt left over). The only downside is that once the debt is forgiven, you’re on the hook for income taxes on that amount that same tax year.
Of course, IBR isn’t the only income-driven plan out there. Borrowers can also benefit from plans such as Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR). While each plan works in its own unique way, they all base your monthly payments on your discretionary income and eventually lead to student loan forgiveness.
By and large, income-driven repayment plans were created for graduates just like Argento – people with large amounts of debt and lower-than-average earnings. That’s why many people who work at nonprofits flock to income-driven repayment plans; instead of struggling to afford huge monthly payments, they can enjoy reasonable out-of-pocket expenses and continue working in jobs that let them give back.
Another Option: Public Service Loan Forgiveness (PSLF)
In addition to income-driven repayment, students interested in working for the public good can look into Public Service Loan Forgiveness (PSLF).
With PSLF, graduates can have their student loans forgiven after working in a qualified public service position and making 120 consecutive payments on their loans. Payments made after October 1, 2007 qualify and the first round of PSLF participants will receive forgiveness beginning this October.
Ginger, a psychotherapist who blogs at Girls Just Wanna Have Funds, uses PSLF to make her student loan payments bearable. Thanks to the reasonable loan payment she has achieved through PSLF, Ginger figures she’ll save 15 years of payments and at least $100,000 on interest if she sticks with it.
And she should. Unlike other income-driven plans that require you to pay taxes on forgiven debt, PSLF wipes your slate entirely clean. If Ginger is able to stay on her current program for 10 consecutive years, she’ll have zero debt – and no trace of a tax bill – once it’s over.
Although she’ll need to work in public service the entire time, this is a huge benefit for her and others like her to look forward to.
Picking a Repayment Plan
With the right plan, you can settle on a monthly payment you can actually afford and move on with your life. Here are some steps that can help:
Step 1: Explore loan forgiveness options. While we touched on the main loan forgiveness programs in this article, you should research more on each before you sign up. There are also many state- and school-based repayment and forgiveness programs. Check out this comprehensive guide on forgiveness programs to find the right fit.
Step 2: Consider your long-term career plans. While income-driven repayment and PSLF can drastically reduce your monthly payments now, that can change quickly if your income surges or your career changes course. Before you sign up, consider how your future decisions might affect your loan payments.
Step 3: Determine how comfortable you are with debt. While loan forgiveness programs can lower your monthly payment and lead to total debt forgiveness, they also leave you in debt for a longer stretch of time. If you don’t like the idea of debt, you might be better off making extra payments and paying off your loans early instead.
Step 4: Sign up for a plan and stick with it. If you decide you’re okay with debt as long as it’s eventually forgiven, you’re a good candidate for loan forgiveness plans. To get the most out of them, however, you should stay the course and see them to the end. Ten to 25 years might seem like a long time, but it will be worth it when you’re finally debt-free.
If you’re worried how you’ll handle your loans as a non-profit worker, it’s smart to explore all of these opportunities to see if one might fit your needs.
With the right repayment plan, you could score an affordable monthly payment and complete forgiveness in the end. If you’re in debt and struggling, that’s the best thing you can hope for.
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