The Exchanges

Q So beyond what I just expressed, what are the other huge problems that you've seen in running a nonprofit?

A It's no different than running a business. So you run into, for example, I mean, you know, we're heading into a recession here in the United States and, and arguably globally. And so, you know, that the same way customers get tighter with their dollars, so do donors. So do institutional funders, even for that matter. And so that becomes very difficult where you have to be able to pivot and change parts of your mission and be able to realize where you can cut, uh, to still survive. Um, I think there's always the problem of trying to stand out. I mean, there is a record number of nonprofits in the United States today. Uh, it is an incredible figure and it's, it's into the millions. And so knowing that and Still trying to figure out a way that you can stand out amongst all that noise to donors, to funders. Um, you know, and I think we saw a lot of that during COVID. I mean, um, just like small businesses, a number of nonprofits had to close their doors because it was even more difficult to stand out in this electronic environment. Um, you know, arguably some of that is good though. Um, because to a certain extent, those people didn't go away. They were able to join forces with a lot of other nonprofits that were like-minded and be able to create what we call collective impact, which is something that a lot of funders want to see today. So anyone looking to raise money for their no…

AI assessment note: “the same way customers get tighter with their dollars, so do donors.”

Q So you're saying there's for-profit companies that will go out and look for grants?

A I mean, there's grants out there that for-profit companies can certainly go for. Most of them are around workforce development or job creation. Um, expansion, uh, buying buildings and properties, things like that. Um, and those, those have always been available, but 90% of grants that are out there are for, um, uh, non-profit entities, and so that's where a lot of for-profits find That nonprofit part to either, again, pay for some of their services to groups that otherwise couldn't afford it. And you see that a lot in counseling services and other social services that are for-profit companies that are trying to expand their reach. Um, but also too, they're just using it as a arm to do good. And sometimes those nonprofit entities are just an affiliate of the for-profit, um, and, and could do a, an array of things.

AI assessment note: “there's grants out there that for-profit companies can certainly go for”

Q Yeah. So is there anything we haven't talked about that you want to add to this?

A I'm always sound a little bit like a skeptic or maybe that it's, you know, it's make it sound too hard, but you know, I, I don't want to project that it's easy. Uh, at the same time though, I would say anybody listening that feels that they want to get into the nonprofit space, I say, as I would to any entrepreneur, go for it, you know, figure out what your niche is, figure out what you're good at and figure out where there's a need. Uh, and figure out what you're passionate about and just go for it. I mean, you know, to file online, uh, is, uh, relatively cheap, just the same way as starting a business. Um, but what I would always, always caution is take a strong look around and see if anybody else is doing what it is that you want to do, because unlike entrepreneurship, where you can elbow somebody out, um, you know, if somebody's already doing good in that space, See if you can join forces with them and, and be a part of their nonprofit. You know, the one thing about this space is you really need to leave your pride at the door. If you're getting into this because you want to be able to say, I started a nonprofit and I'm a philanthropist, this is, you're not in it for the right reasons. So really see where that impact is and then take yourself from there.

AI assessment note: “anybody listening that feels that they want to get into the nonprofit space”

Q How would a nonprofit juggle operational spending versus spending on the mission, right? Cause they're very different.

A They are extremely different, and I will say one of the more difficult parts, especially when it comes to donors and grant funders, things of that nature, more and more we're seeing groups saying, we don't want our money going to organizational spending. We don't want it to go towards overhead, as they call it. But we all know that to run a business or to run a nonprofit, it takes overhead. There's no question about it. I mean, some organizations can be 100% Uh, volunteer led, uh, pushing, you know, a hundred percent of their dollars into the community. And that's wonderful, but it's very hard to scale that kind of impact. And it's very hard to grow. And, and really, honestly, it's really hard. I say to scrutinize those dollars because it's volunteers. So they're not there every day, balancing the books deep into the figures, making sure every dollar is accounted for. So I always make the argument to, Institutional funders or donors of you actually want some overhead because that's how you ensure that your dollars are being properly spent.

AI assessment note: “I always make the argument to, Institutional funders or donors of you actually want some overhead”

Q that generate income so that you can use that money for your own operating expenses and, you know, the donations and grants and all that can just go directly to, you know, what you're, so there's, there's many different ways of thinking about it. What percentage of company, what percentage of nonprofits do you think think this way and what percentage of them are actually doing something in this realm?

A You know, I think the only answer to that is not enough. Uh, and because what exactly what you just described there works both ways and I've seen it wildly successful. So, you know, some great examples of that are, um, schools for, for, for students that are looking, you know, non-traditional, uh, course of education. And then what I've seen very successful is that once they graduate, they create businesses of their own, where they go out and do service in the community. And that generates funds back to the nonprofit school so that they can continue that, uh, that, that service. And that's everything from landscaping to, uh, Restaurants and things of that nature. Pet care. I mean, it's really some incredible, incredible things that we all use every day. And if you can do some global good with the money you are going to spend regardless, then why not? And so that message works very well for those nonprofits. On the flip side, uh, you know, you really hit the nail on the head on the other part of it is for profit businesses that realize, Hey, you know what? My services that I offer, there's a lot of people out there that can't afford them and I can't afford to give it away for free. But that's where they, my services would do the most good. Um, And so a lot of those for-profits then will start nonprofit entities that go out and pursue funding, essentially that offsets the cost of…

AI assessment note: “I think the only answer to that is not enough.”