Nonprofit Alternatives

Not Every Great Idea Needs a New Nonprofit

Every week, there are people who wake up with a brilliant idea for a nonprofit. They’re excited, passionate, and eager to make a difference.

But here’s the truth: not everyone who has a great idea should start a new nonprofit.

That might sound surprising coming from someone who helps founders launch nonprofits for a living. But my goal isn’t to see more nonprofits — it’s to see stronger ones. And sometimes, that means encouraging people to pause before jumping in.

🚦 When a New Nonprofit Might Not Be the Answer

1. The community is already saturated.
If your area already has two or three organizations doing very similar work, adding another one can create competition instead of impact. You risk stretching volunteers and donations even thinner and stepping on the toes of people who are already working hard in that space.

2. Funding expectations don’t match reality.
A common misconception is that starting a nonprofit means you’ll quickly get grant funding to pay yourself a salary. In reality, most grantmakers want to see a track record of success before awarding funds. That can take years, and many new nonprofits rely heavily on fundraising and volunteer support in the beginning.

3. The board runs the nonprofit — not the founder.
Many people don’t realize that, legally, the board of directors governs the organization. If you imagine yourself being “in charge” of your nonprofit without oversight, this can come as a shock. A nonprofit is not a business you own; it belongs to the community it serves.

4. Lack of governance experience.
If you’ve never served on a nonprofit board before, you’re entering unfamiliar territory. Understanding fiduciary duties, compliance requirements, and effective board leadership is essential before taking the leap.

🌱 Other Paths to Impact

Just because starting a new nonprofit may not be the right move doesn’t mean your idea isn’t worth pursuing. Some powerful alternatives include:

• Partnering with an existing nonprofit that shares your mission – join the board or volunteer on a committee

• Starting a program under a fiscal sponsor (working under their nonprofit umbrella, so you do not need to jump through all of the hoops to set up a nonprofit)

• Get B Corp Certification for your for-profit company – B Corps are driven by both profit AND mission

• Collaborating with other community leaders to strengthen existing efforts

• Fundraising to donate funds to an existing nonprofit that is doing the work you are passionate about

💡 A Final Thought

Your passion matters. But the way you channel it matters even more. Sometimes the most impactful choice isn’t founding something new. It may be joining forces with those who are already making a difference.

Email me with any questions: [email protected].