Ask Yourself These Questions Before You Start a Nonprofit

If you do, you will not be alone. The number of U.S. nonprofits has grown at twice the rate of for-profit organizations. There are an estimated 1.4 million charities and it is quite likely that someone already has your idea. So, before you go ahead, answer the following questions:

• Am I cut out for this? Starting a nonprofit is very much like starting a business. It's just that you have to find donors instead of investors. However, donors today demand that nonprofits be run like businesses. You will need a business plan plus produce measurable results later. You will, just like a business owner, have to put in long hours, probably without pay, until you can get the new enterprise up and going. Some people who start NPOs have to keep paying jobs during the startup period. You will need not only passion for your cause but a big dose of entrepreneurial spirit.

• Do I have an original idea? With so many nonprofits already in existence, it is likely that there is one, or even a few, that have already claimed your idea. Do your research and locate other NPOs that are similar to the one you propose. If there are organizations out there that have the same mission and they do a good job, it is going to be very difficult for you to attract donors, foundation grants, or any other support. You may be passionate about your cause, but the nonprofit "market" will not bear much redundancy.

• Is a new nonprofit necessary? You don't have to start a new NPO to make a difference. You might be able to work with an existing organization to establish a new focus for that NPO. You might, also, work out your passion by volunteering with an existing organization. Perform a needs assessment to make sure that your organization is really needed.

If you have done your research and are convinced that your idea needs to find its life in a new nonprofit, go ahead. But, make sure you are prepared for the tough road ahead, have the energy for the first steps, and the passion to get you over the hard spots.

Here are some resources that will help as you establish and get your nonprofit going:

• Nonprofitlaw.com and managementhelp.org have information on incorporating, drafting a business plan, raising funds, and building a board.
• Research existing nonprofits at guidestar.org.
• Find organizations that provide funds for NPOs at foundationcenter.org.