This article is adapted from Davidson Institute’s “Considering Your Options: A Guidebook for Investigating Gap Year Opportunities”, part of our collection of free guidebooks for gifted and 2e families. For a deeper dive into supporting your gifted or twice-exceptional child, we encourage you to explore the full guide.
As you might imagine, there is a significant difference in the level of commitment necessary for someone planning to volunteer at an existing organization and someone starting their own organization. Depending on what your goals are, starting your own organization might be the only option if nothing already exists to meet those goals.
Anyone who is seriously considering starting their own giving back organization must have some source of motivation driving them to dedicate their free time and energy towards a cause. What is your motivation? Why are you reading this guidebook and considering taking on more responsibility? There is no right or wrong answer to these questions, and making the decision to give back is often the result of a personal life experience that has served as inspiration.
If you do decide to start your own organization, one of the first and foremost important things to do is effectively communicate what the organization is about, what need(s) it will meet, who it will serve, and how it will serve them. These answers will be the basis for everything you do, from recruiting volunteers to identifying the target population. At its broadest, your organization (even if it is a nonprofit) must have a business plan just like a for-profit business. This plan should include a mission as well as clearly defined goals and strategies. The plan should be a working document that you can refer to and modify as you develop your ideas. The document can be thought of as a blueprint for your organization’s activities. Keep in mind that any part of this blueprint may change over time as your organization evolves and new situations arise.
Components of an Effective Business Plan
A mission should be summed up by a mission statement. A mission statement will serve to define the individual or organization’s long-term view and purpose. It will provide the public with a good idea of what the activities will consist of and will briefly define these activities. A mission statement should be brief and concise.
Example of a Mission Statement: “I (or organization name) will collect, refurbish, and distribute used computers and electronics to students who would otherwise not have access to them.”
The above example states what this person or group wants to accomplish at the broadest level: collect, refurbish, and distribute used computers and electronics to students. It conveys this message in a clear, simple, and concise way that the reader can understand quickly.
If you are thinking about “giving back” at this advanced level, the first step is to identify the one cause that you are most passionate about. Whether that is the environment, helping those less fortunate, a social injustice, an endangered species, or anything else you can think of, finding a cause you feel compelled to dedicate your time to is the most important first step to making a real difference. If you are not truly passionate about your cause, it will show in the work you do and decrease not only your effectiveness but your enjoyment of the process as well.
Once you have defined your mission, the next step is to get more specific by identifying several big picture goals and very specific, measurable strategies, which will allow a mechanism for tracking progress toward the goal(s).
Goals will describe in greater detail what you intend to accomplish (as stated in the mission statement). How many goals you have and what those goals include will depend on the scope of your mission statement. For the example given above, four goals could be as follows:
- To raise awareness about the lack of student access to computers in the community;
- To encourage people to donate their used electronics to this organization;
- To develop relationships with schools in need of computers;
- To refurbish and donate computers to these schools.
According to Rod Seba of Breakthrough Training Inc., about three goals is a good number to start with, but it is not a magic number. Two could be just as good, as well as four or five. It really just depends on your specific plans and expectations.
Strategies consist of specific, quantitative, and measurable ways to identify what needs to be achieved in order to reach each of your goals. For each goal, you will need at least one strategy that will allow you to measure your progress toward each goal. Going back to the example given above, the strategies may be as follows:
- Goal 1: To raise awareness about the lack of student access to computers in the community.
- Strategy 1a: Distribute 2,000 flyers at computer stores, PTA meetings, and through door-to-door canvassing within the first six months.
- Strategy 1b: Create a website and email campaign; obtain 3,000 web hits in the first year.
- Goal 2: To encourage people to and companies to donate their used computers and electronics to this organization.
- Strategy 2a: Collect at least two computers a month for the first year, three computers a month for the second year and five computers a month for the third year.
Remember, strategies must be measurable and could contain deadlines if you would like. Strategies may also include the number of people you will recruit to help fulfill your mission (if you are planning on having more than just yourself on staff).
Additionally, there is nothing wrong with THINKING BIG, but remember to keep your goals and strategies manageable. Nothing is more discouraging than failing to meet your own goals! Set reasonable expectations for yourself (especially at first) and modify them later if you find yourself exceeding them.
Now that you have got your mission statement, goals, and strategies, you are ready to start working. When formulating the above plan on paper, you started from the long-term mission, moving down to more detailed goals and eventually down to very specific and manageable strategies to reach those goals. Now that you have got it all mapped out and you are ready to get out into the field and start the actual work, you will work backwards. Starting with the very specific, everyday strategies and following your timeline to eventually accomplish your big-picture goals and long-term mission!
Establishing a Nonprofit Organization
Although having nonprofit status will provide benefits to help your organization grow (such as tax exemptions and a greater ability to fundraise), it is not something that is right for everyone. If you are going to be operating locally or on a very small scale, it may not be necessary or beneficial for you to have legal nonprofit status. As with most everything in life, the process to become a legal nonprofit and obtain tax-exempt status with the IRS does cost money. The exact fees vary depending on the specifics of your organization, but the range is from a couple hundred to almost a thousand dollars. You will need to perform your own cost-benefit analysis to determine if it is worth the expense.
If you do decide becoming a legal nonprofit is right for you, the first step in the process is to file articles of incorporation in your home state. This process varies by state, so you will need to do some research about what your state requirements are. By searching the phrase “Articles of Incorporation (your state)” in your favorite internet search engine, you will find lots of great information about how this can be accomplished. Often, a named board of directors or similar managerial body is required in order to complete this step. Once you have incorporated in your state, you will then be eligible to file for tax- exempt (nonprofit) status with the IRS, which will distinguish your organization from a for-profit business with respect to accounting regulations and tax exemptions. This can become complicated because there are many different IRS designations for tax-exempt organizations. Additionally, there are fees associated with obtaining this designation with the IRS.
The Public Counsel Law Center, based in Los Angeles, offers some resources on their website under “Community Development Project Resources for Forming a Tax-Exempt California Nonprofit Corporation”. Here is the link to an IRS Application for Recognition of Exemption (to apply for federal tax-exempt status). Form 1023: https://www.irs.gov/forms-pubs/aboutform-1023.
What is a Nonprofit?
A nonprofit organization is a legal term for a business that is organized in such a way that it does not produce a profit for owners or shareholders. Formal nonprofits may be organized like a corporation, a private foundation, a public charity or may take on any other organizational structure that will best serve its needs. Essentially, being a “nonprofit” is no more than a legal designation which can make a group eligible for certain IRS tax exemptions and accounting guidelines with respect to income earned or received in the form of grants and donations. The costs of doing business as a nonprofit are generally less than for-profit companies because of tax exemptions. This allows organizations with little cash flow to focus their limited resources on their mission, rather than business expenses.
If you do decide to pursue nonprofit status for your organization, you’ll likely need a parent’s help, as it is a legally binding process that will require adult supervision and signatures. This does have the potential to become a time-consuming and costly process, so give it some serious thought with the help of a responsible adult. Being enthusiastic about your cause is one thing; funneling all that energy into the necessary channels to start a nonprofit and taking responsibility for it is another thing. The process is very similar to starting your own business, but it actually requires even more paperwork and processing (to make sure you meet all the eligibility criteria to be considered a nonprofit).
Even though a nonprofit organization does not make a profit from the goods and/or services it provides, most nonprofits still have expenses, assets, and even a payroll, just like any other business. How nonprofits pay for such expenses varies; private contributions, donations, and public grants are only a few common sources of funding utilized by nonprofits. According to Bruce Hopkins, lawyer and author of Starting and Managing a Nonprofit Organization, typically one will need to secure the consulting services of one or more of the following three specialists: a lawyer (for assistance filing articles of incorporation, if necessary), an accountant (for assistance with filing for tax exemption) and a fundraiser before starting their own nonprofit organization (Hopkins, 2005). While you may be lucky enough to convince some of these individuals to donate their expertise, the more likely scenario is that you’ll need to pay them to help you get started. Expenses vary depending on what you need help with and your specific geographic region, but many lawyers will provide an initial consultation free of charge. This should give you an idea of how much the process will cost. Making sure you have the startup capital necessary to follow through once you have begun is a very important consideration.
As mentioned above, legal nonprofit status is not necessary or desirable for all organizations. Carter McNamara, MBA, Ph.D. of Authenticity Consulting, LLC, offers the following points of advice for someone considering starting a nonprofit.
“Before you start your nonprofit, it’s helpful to realize that the phrase “starting a nonprofit” can mean many things. Read the following very basic information to begin thinking about what you mean when you set out to ‘start a nonprofit.’
- You can be a nonprofit organization just by getting together with some friends, e.g., to form a self-help group. In this case, you’re an informal nonprofit organization.
- Consider incorporating your nonprofit so it exists as a separate legal organization in order to:
- own its own property and its own bank account;
- ensure that the nonprofit can continue on its own (even after you’re gone) and
- protect yourself personally from operations of the nonprofit. You incorporate your nonprofit by filing articles of incorporation with the appropriate local state office. (An incorporated nonprofit requires a board of directors.)
- If you want to be exempt from federal taxes (and maybe some other taxes, too), you should file with the Internal Revenue Service (IRS) to be a tax-exempt organization. The IRS states that you must be a corporation, community chest, fund, or foundation to receive tax-exempt status. Articles of association may also be used in place of incorporation. (Probably the most well-known type of nonprofit is the IRS classification of 501(c)(3), a “charitable nonprofit.)
- Depending on the nature of your organization, you may also be granted tax-deductible status from the IRS. Publication 526 lists the types of organizations to which donations are deductible.
- So, if you did all of these steps, you’d be an incorporated, tax-exempt nonprofit that could receive tax-deductible donations.
- The particular steps you take depend on your plans for your organization, including the nature of its services. They also depend on how the IRS interprets the nature of your organization, including its services.”
Source: https://managementhelp.org/organizations/nonprofits.htm
Helpful Resources
- Free Management Library: Starting a Nonprofit Organization
- Grantspace – How do I start a nonprofit organization?
- Grantspace – Nonprofit Startup Resources By State
- Starting and Managing a Nonprofit Organization: A Legal Guide
- Foundation Center – Improve Your Skills
Fiscal Sponsorship
Try not to be overwhelmed! Having gone through all this information, it might seem like a daunting task to undertake. However, starting a nonprofit does not mean you need to “go it alone.” There are many organizations out there whose mission is to help people like yourself through this process and ease some of the legal and/or financial burden such an undertaking can have, in addition to providing strategies and tools for fundraising. Commonly called fiscal sponsors, these may be public or private entities whose mission is to facilitate this process for small, startup nonprofits like yours. Having a fiscal sponsor might restrict some of the control you have over your nonprofit operations, and you will need to decide if it is worth such a tradeoff. One of the most comprehensive lists available of fiscal sponsorship organizations can be found here.
Again, not all new organizations need to become legal nonprofit entities. Below are websites that provide answers to the question of whether your organization should become a legal nonprofit or not:
- When should a new community program seek 501(c)(3) status? http://www.fiscalsponsorship.com/
- A Comparison of starting a new 501(c)(3) organization versus using a fiscal sponsor from the Adler and Colvin Law Firm.
Additional Suggestions for Getting Started
Take your time choosing your cause – What is it that you are truly very passionate about? Do not rush into the first thing that comes to mind or something that sounds good to you on a whim. This is something you are going to spend a lot of time on, and you do not want to become disenchanted (or bored) midway through. You’ll need passion, drive, and commitment to work through the tough times when things don’t seem to be going as planned.
Grow naturally, don’t rush it – You should be very enthusiastic about your cause! However, this does not mean you should try to “save the world” in one fell swoop. Great organizations start small and grow slowly to serve more and more people (or animals or communities, etc.) over time. Staying within your means is incredibly important; it does no good to anyone if you become overextended and need to shut down operations. If you recall from Jan Davidson’s introduction, the Davidson Institute started in 1999 with 4 employees and 15 Young Scholars. Ten years later, the Institute (and affiliated programs) employs more than 50 people, with 1,700 Young Scholars nationally!
Don’t be a perfectionist – Everyone should strive to do their best. However, doing your best does not mean doing everything perfectly. It may not be very hard for you to get a 100% on a school test, but the real world is a bit different. Things rarely work out perfectly, and it often takes a great deal of flexibility, compromise, persistence, and patience to get things done. The ability to laugh at situations (or yourself) when things do not go your way will help a great deal as well.
Skeptics – No matter what you do in life, there will always be people who doubt your abilities, your motivations, and your dedication. This is just an unpleasant fact of life. Try not to let these people get you down. It is difficult sometimes to stay focused in the face of doubters, but over time, as you become more established, begin to see results, and become more confident, these people will not have as much of an effect on you.
Continuous Improvement – All successful organizations have a mechanism to incorporate continuous improvement. Life is one big learning experience, and this venture is no exception. You may do something one way, and then realize it would have been much more efficient and useful to do that same thing another way. Being open-minded to suggestions for how to do things better and constantly re-evaluating your operations to increase effectiveness is a very important skill. We suggest having “hindsight meetings.” Hindsight meetings will allow you and anyone else involved in your organization (including those you are serving) to offer feedback and creative suggestions for how to make your operations run more smoothly next time around. You may have heard the phrase “hindsight is 20/20.” At no time is this truer than when trying to accomplish something you have never attempted before.
Davidson Young Scholar Ambassador Program
The Davidson Young Scholar Ambassador Program empowers Young Scholars to create and lead their own community service projects. Selected Ambassadors-In-Training complete an 18-month program featuring expert-led training in leadership, communication, philanthropy, self-advocacy, fundraising, and more, along with guidance from a dedicated advisor.
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