July, 2004 -by Peter C. Brinckerhoff

This Month's topic: Nonprofit Start-up

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Websites of the Month

This section includes websites of interest on this month's topic. I urge you to give each a look, as they often cover different areas or have a different focus on the topic area..

US Government. Amazing as it may seem, the US government has a great site that compiles all things nonprofit. Scroll down to the Registration and Licensing to see links to info from your state as well as all the federal information and forms.	www.nonprofit.gov
Free Management Library As always, deep, wide and amazingly complete.	www.mapnp.org/library/strt_org/strt_np/strt_np.htm
Center for Nonprofit Management The Nashville, TN MSO has put together this great start-up checklist. I love lists, so I appreciate this!	www.cnm.org/content.aspx?page=NPStartup
Nonprofit Start-up A for-profit site, but the link is to all the info you could want about different types of 501 (c) orgs.	www.nonprofit-startup.com/html/reference_chart.html
Nonprofit Resources The TA provider in Arkansas has put together this simple, but effective start-up list. I like it.	www.aristotle.net/~nonprofit/startup/startup.html
About.Com Robert DeMartinis has collected this great set of information for start-ups.	nonprofit.about.com/library/weekly/aa112702.htm
Nonprofit FAQ Here's the FAQ's resource list on start-ups.	www.nonprofits.org/npofaq/keywords/1l.html
Good information from the IRS on getting tax-exempt status.	www.irs.gov/charities/article/0,,id=96590,00.html

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I get more email about how to start a new nonprofit than just about any other subject: spam not included, of course. If you are thinking about starting a nonprofit, or more likely, know someone or some group that is on the cusp of organizational incorporation, here are some things to think about and pass on.

1. Most new organizations run on passion alone. This is wonderful for a while, but like a marriage, passion alone will not suffice. Many new organizations get going and have so many good things to do that they don't stop to think beyond the next week, month, or grant cycle. Early long term planning for growth is essential. This includes thinking through what needs to happen with the original incorporators can't give as much time to the mission as they do at the beginning. Also, the passion and excitement of a new organization sometimes cause people to not pay adequate attention to the legal and accounting issues that are so important as well. Checklists for these are provided by the websites and publications I have noted in this issue.

2. Being right/good/charitable is not enough. While it is usually "obvious" to people in a new organization that what they are doing is needed, the question is-- is it wanted? More on this in the marketing tip below

3. Remember that you are part of a community, not a solo act. I've lost track of the number of times people have come to me and said something to the effect of: "Our community needs x service and no one else is providing it.", when, in fact, a number of organizations are either already working with the same population, or providing exact duplicate services. For lack of a little research (which is incredibly easy with the internet) the organization reinvents the same services already provided and doesn't understand why an insufficient number of people come to patronize them.

I have no problem with competition between organizations, or in doing the same service in a better location, or at a better time, or with a better philosophy, but check first to make sure you fully understand what's out there. And, make sure you network with other providers. The nonprofit world is a very sharing place for the most part. Talk to others to avoid the mistakes that have already been made.

Start-up is an exciting, tiring, stressful, and rewarding time. With a little planning, and the use of the web and print resources listed here, you should be more successful and the people you intend to serve will benefit both more and sooner.

If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

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My top recommendations in Nonprofit start-up are shown below. The Hopkins book gives you a legal perspective, while Joan Hummel's book is written more for non-lawyers. All three are excellent tools.

If you want more information on these recommendations, click on the cover image and you will go the page about the book on Amazon.com. There, you can look at more info about the book, and read some reviews before you decide whether or not to purchase or look for this book at your local library.

Note: If you want more recommendations on publications in a wide variety of areas, including nonprofit marketing, go to the publications section of my website: www.missionbased.com/publications.htm

Again, If you don't find enough choices there, type "nonprofit start-up " in the Amazon.com search box on the left hand side of the page and you'll have more choices than you probably want!

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Here are some ideas for you as you try to wrestle with all the issues that will be facing you during start-up.

First, you have the issue of how to get your message out, how to start fund-raising, you to coordinate your efforts. In short, you need a website, an email address, a domain name, and some fund-raising, and accounting software. Sound overwhelming? It's not, really, and there are people out there to help you. The resources below should get you going. Pay particular attention to NPower--they are wonderful.

SOFTWARE LISTING

I personally think that most small start-up nonprofits can do just fine with a copy of Quickbooks, or QuickbooksPro from www.quicken.com. But look around and talk to the resources above and look at this great list of all kinds of nonprofit software--including finance and fund-raising.

www.nonprofitexpert.com/nonprofit_software.htm

If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

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Below you'll see the date, location, and topics of training I'm scheduled to do in the next few weeks. For more information on a particular speaking engagement, get in touch with the contact person listed in the right hand column, or email me.

For more information on my availability throughout the next 12-18 months, available topics, sample agendas, and fees go to www.missionbased.com/training.htm

Date	City	Topic	Contact
7/20/04	Chicago	The Mission-Based Board Member	Ann Cohn Donnelly a-donnelly@kellogg.northwestern.edu www.kellogg.northwestern.edu/nonprofitexeced
7/26-27/04	Charlotte	Business Development	NISH Deborah Atkinson datkinson@nish.org
9/23/04	Houston	Mission-Based Marketing	Russanne Kelly United Way of the Texas Gulf Coast RKelley2@uwtgc.org

Your start-up is meeting need. Is it meeting a want, too?

Your organization is either just getting going, or is about to incorporate. You know that what you're doing is important, but the question is will the people you want to help feel the same way? There is a crucial question in marketing, and it's this: No matter what kind of product or service you are about to provide. Do the people you want to sell to (or give services to) want what you are selling, in the manner you are selling it, at the time and place you are selling it for the price you are selling it? If the answer to all of these questions is not a resounding YES!, it is time to stop, step back, and re-evaluate. Further, if the answer isn't a resounding yes from a LOT of people, you may well have trouble in the very near future.

Here's an example: A faith-based group knew that there were many hungry people in their community. They wanted to provide free food to those people, a good idea in any town. But they decided that the most cost-efficient and nutritious way to provide the food was at a local church, so that the food could be prepared in bulk and have the right nutritional balance. Additionally, the group had no means of transporting food to individual homes. So, they opened their doors, advertised, did a variety of outreach, and hardly anyone came.

Why? For a variety of reasons. First the church that was chosen was on the "rich" side of town, not the side with the most homeless people. Great kitchen, poor location. The church was not within easy walking distance of any bus line, and, for some a church building in and of itself, is a barrier.

Think through what your customers want. How do you find out? You ask. Remember, you almost certainly know what your customers need. Your job is to find out what they want, and thengive them what they need in the way that they want it. If you do that, right from the start of your organization, you will be a market-driven, yet fully mission-based organization, and help many, many more people.

If you want to see more about this in detail, take a look at more about my book Mission-Based Marketing; Second Edition

If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

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Future Topics in 2004 for the Mission-Based Management Newsletter....

August	Governance
September	Political Activities
October	Increasing Involvement of Younger Staff, Board, and Volunteers
November	Outcome Measurement
December	Life-Long Learning
Send me your topic suggestions at peter@missionbased.com

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