If you listen to my podcast regularly, you know I often talk about why people (usually) shouldn’t start new nonprofits. You can read more about why I think starting new nonprofits can be negative here (scroll down to the FAQs section). But the gist is: Starting a new nonprofit can divide vital resources in the sector, which weakens everyone’s ability to serve their mission.
so what are the alternatives to starting a nonprofit?
If starting a new nonprofit isn’t a good option for you, what should you do instead? In this article, I’ll outline 4 ways to serve your mission without starting a new nonprofit.
1. Partner with an existing nonprofit
Do some research on the nonprofits that are already serving your mission (or serving a mission that aligns closely with yours). Connect with them to find out:
How are they serving this mission? (What programs do they run?)
Why have they chosen to serve the mission with these particular programs instead of following another path?
If you have a different idea about how they should serve the mission, find out why they aren’t employing your idea already — They may have access to evidence you don’t know about which points to a different solution, or they may simply lack the resources to employ your solution.
Where are the gaps in their mission work? Why do those gaps exist, and what skills/resources do you have that could help fill those gaps?
What is their preferred way to partner with others (like yourself) who can help build their capacity to serve their mission?
If you’re not sure how to find nonprofits already serving the mission you care about, try the following:
Reach out to your state’s nonprofit association and/or your local community foundation and ask if there’s already a local nonprofit serving this mission
Use GuideStar and/or Charity Navigator to search for nonprofits serving this mission
2. Form a mutual aid group.
Unlike a 501c3 nonprofit, which is a formal organization registered with the IRS and/or your state government, a mutual aid group is simply an informal network of people that work together serve an immediate need. A mutual aid group can be more agile than a nonprofit because its volunteer leaders can make and act upon quick decisions without the need for a board of directors.
Learn more about mutual aid groups:
Harper’s Bazaar has a great article explaining how mutual aid groups sprung up to support communities in need during the COVID-19 pandemic.
Mutual Aid Hub has some free resources to help you learn more about and start a mutual aid group.
Big Door Brigade offers a toolbox with models for starting mutual aid projects that serve a variety of causes.
3. Find a fiscal sponsor.
I’ll be honest — This is my favorite way for passionate leaders to get started with mission-driven work.
A fiscal sponsor is a nonprofit organization that lends its support to your program by taking you under their wing. Fiscal sponsors allow you to form an organization under their umbrella so you can accept donations/grants, offer support with administrative needs, and help you remain compliant with federal and state regulations over charities.
Learn more about fiscal sponsors:
The National Council of Nonprofits has a great article explaining fiscal sponsorship.
The Fiscal Sponsorship Directory helps you find a fiscal sponsor. Your local community foundation may also be willing to act as your fiscal sponsor.
Ribbon is a tool that helps you build a charity with a fiscal sponsor.
4. Launch a social enterprise.
A social enterprise is a mission-driven, for-profit business. Basically, a social enterprise combines the do-gooder spirit of a nonprofit with the revenue-generating ability of a for-profit company.
If you have a revenue-generating idea for a mission-driven organization (such as selling items with a “buy one, give one” model like TOMS or employing people who face barriers to entering the workplace), starting a social enterprise may be a better idea than starting a nonprofit.
The benefits of starting a social enterprise instead of a nonprofit include:
You’re the boss. You can make unilateral decisions, which can make your organization more agile than a nonprofit, which requires board approval for major shifts in direction.
There are no limits to the profits you can earn. Usually, nonprofits’ tax-exempt earned revenue is limited by the IRS.
You can do what you want with the profits earned. If you want to increase your own paycheck, donate to a charitable cause, reinvest in your business, or do something else with your profits, it’s all up to you! If you start a nonprofit, there are restrictions on what you can do with the revenue generated by your program.
For inspiration on starting a social enterprise, check out Conscious Company’s article about 6 types of social enterprises.
Still want to start a nonprofit?
If you’re still set on starting a nonprofit, check out my free resource deck with all the tools you need to get started.