Table of Contents

Introduction

Chapter 1: The Lies, The Source, The Beneficiary

Chapter 2: What You Don't Know Will Hurt You  

Chapter 3: Rule No. 1 - Go In With the Right Intention

Chapter 4: Rule No. 2 - Create A Strategic Plan  

Chapter 5: Rule No. 3 - Get the Skills Needed to Run an Organization

Chapter 6: Rule No. 4 - Think Like a Funder, Not Like a Founder

Chapter 7: Rule No. 5 - Surround Yourself with a Brilliant Support

System  

Chapter 8: Rule No. 6 - Diversify Your Funding Stream  

Conclusion

Preview of ‘How to Start a Nonprofit Organization’

Check Out My Other Books

Bonus: Visit The Institute for Nonprofit Management at www.ifnpm.org for downloadable templates and Free Resources for Nonprofit Leaders

Introduction

Thank you for downloading this book, “Why Nonprofits Fail: The Truth Every Founder Should Know Before Starting A Nonprofit Organization”.

It contains valuable insights on why so many nonprofit organizations fail, and Five

Rules on how to prevent your new enterprise from experiencing the same fate. It

provides proven steps and strategies founders should know BEFORE one document is

submitted to the IRS for tax-exempt status approval. This first exploratory step is crucial

for anyone thinking about starting a nonprofit organization.

Most nonprofit leaders will tell you running a Nonprofit Organization is hard -

Because it is. For so long people have bought into the myth that they can just start a

nonprofit and, voila! Instantly they’ll get grants and have this fully funded organization.

The truth is that there are over 1.5 million nonprofits in this country, and probably only

about 20% of them are successful. My definition of successful is an Executive Director

that is paid industry-standard salary; a paid staff, including a paid fund developer; and

enough revenue to cover annual operations (e.g., medical, liability and board insurance;

transportation, programs and services), purchase equipment, cover facility costs, and

have reserve funds to plan for growth and expansion, and/or cover unforeseen

occurrences.

My goal is to help founders go into this venture fully prepared, with a clear

understanding of what it takes to run a successful nonprofit organization. After reading

this book you will be able to determine whether or not starting a nonprofit is what you

really want to do. If not, what other options you have besides forming a nonprofit. And,

if you still choose to move forward with starting one, how to do so powerfully so that

your organization does not close its doors within the first 2 years of opening like most

organizations that have been started without the proper knowledge, leadership, funding,

and experience that is required. This book will help you identify the pitfalls many

founders unknowingly fall into when starting a nonprofit organization without the

proper knowledge and skill set.

I wrote this book because so many of my clients who are founders and Executive

Directors have said that they wish someone had told them all of this before starting on

this path. It’s not that they don’t love their jobs, or the contributions that they’re

making, but they just wish they had been told the truth so they could be better prepared,

and therefore more effective leaders. This one is for you guys! I hope the rest of you find

it valuable.

Chapter 1: The Lies, The Source, And The Beneficiary It’s 2:00 a.m. and the infomercial comes on. The man behind the studio desk stares into the camera and speaks to you. In his most earnest voice he tells you how many hundreds of thousands of dollars is sitting out there waiting to be claimed. Money for businesses, to pay off houses – you name it, the money is there. And most importantly, it’s “Free Money!” That’s right, free. It’s Grant money that doesn’t have to be paid back.

You perk up. It’s Free money that doesn’t have to be paid back? He holds up the key to your salvation. A Book, that lists all of the grants that are available to you, in one convenient location! And . . . wait for it . . . there’s a money back guarantee! For only $29.95, you can have it in your hands in just 3 days . . .

The screen flashes to Susie homemaker who got $500 her first try! And secured $3,500 in a month--all because of this book.

Or perhaps you attended a free workshop. The charismatic leader in the front of the room tells you how there’s money out there for collecting buttons, buying music equipment to use as therapy, writing a book, and job training programs. She shows you, in writing, the section from a government listing these grants. Circled in bold red marker is $100,000.00. The crowd gasps.

You perk up. “And the beautiful thing, people. Is that this is Grant money! You never have to pay this money back!”

Fast forward 45 minutes and the charismatic leader clicks to the last slide of her power point. “And for $99 you get the book, the CD, and a free coaching call that walks you, step-by-step through the process of starting your own nonprofit organization so that you can have access to this free money.”

Regardless to whom told you, or the pitch you were given, the results are usually the same: you were duped. Somebody’s Get Rich Scheme was to figure out that there are thousands of people looking for a Get Rich Scheme they could believe. With a little marketing and some slippery wordsmithing, that $29.95 and $99 “investment” becomes their get rich quick and new additions to your library resource center (e.g., books on your bookshelf that you never ever read).

Why? Because once you get the book, or open the CD you quickly realize that there’s more to that government listing than that infomercial told you. Like, in order to qualify for that grant for collecting buttons you need to live in the Emily Johnson Nursing Home in Watchaloozie, North Carolina. Because a former resident left in her estate a grant to the Nursing Home that supports one of her favorite past times, collecting buttons. And to ensure that Greta, Marge, Edith, Mary Jo, and Beth Anne would be able to continue their group activity of sewing eyes on rag dolls that they then donate to orphanages, she established the grant. Or, for the purchase of the music equipment – she failed to share with you that in order to qualify for the $100,000 grant you need to be a Unified School District serving Native American youth in the Appalachian Mountains.

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Slippery Wordsmithery. Now you can’t get your money back, because technically she didn’t like. The money is available. You just don’t qualify for any of it. And even if you do, you have to form a 501(c)(3) nonprofit organization. Then you have to recruit a board, develop an infrastructure, accounting systems, policies and procedures, programs, outreach, hire a staff . . . are you feeling me? Those are just the tips of the iceberg, there’s so much more you have to do BEFORE you can even qualify to receive funding.

I’m just saying . . .

The Source. If you took time to look at the source you may have come to the conclusion earlier that the information they were giving you might not be on the up and up. The lies these opportunists sold only benefited themselves. They saw a need (Your need to try and find a quick and easy way to make money) and filled it.

From this point forward, I challenge you to become an informed founder. At this stage, it means looking at information from all angles, and determining the validity, credibility and beneficiary of all of those affected. In the case of infomercials, workshops, and seminars, do your homework. Most of these marketing gurus have been around long enough to have screwed a few people to the point where they’d post a review. Google them before you purchase anything. See what others are saying. If they have rave reviews, then you can feel more confident about your purchase. If there are a slew of complaints, then it lets you know they’re all about the Sale and not about providing you with credible information that is going to help you create a successful nonprofit organization.

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Check Out Additional Books in the Series

Below you’ll find some of my other popular books that are popular on Amazon and Kindle as well. Simply click on the links below to check them out. Alternatively, you can visit my author page on Amazon to see other works in this Nonprofit Management Series.

Why Nonprofits Fail: The Truth Every Executive Director Should Know on Amazon

How to Start a Nonprofit: A Comprehensive Guide on How to Start a Nonprofit Organization, Made Easy! on Amazon

Developing the Nonprofit Infrastructure: A Step-by-Step Guide on How to Write and Effective Mission Statement, Vision Statement, Organization History, and Program Description on Amazon

The Annual Budget: How to Develop an Annual Budget for Nonprofit Organizations on Amazon

Nonprofit Sequencing: A Step-by-Step Process for Running a Sustainable Nonprofit Organization on Amazon

The Nonprofit Board of Directors: How to Attract Powerhouse Board Members on Amazon

Nonprofit Program & Service Delivery: A Comprehensive Guide on Developing Dynamic and Innovative Programs and Services on Amazon

Funding a Nonprofit: How to Create a Diversified Funding Strategy on Amazon

The Art of Networking: What to Say and Do to Get Donors, Volunteers, and Partners to Support Your Nonprofit Organization on Amazon

Nonprofit Donor Cultivation: How to Turn Annual Asking into Annual Giving on Amazon

The Greek Exchange: Leveraging BGLO Sponsored Nonprofits for Community Impact on Amazon The Greek Exchange II: From Tradition to Innovation . . . A Dynamic Partnership for the Future on Amazon

If the links do not work, for whatever reason, you can simply search for these titles on the Amazon website to find them.

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