Part II-Should You Start a Nonprofit in Today’s Economy?

Due to family and other matters I was unable to post the last several months.  I will be posting  around the 5th and  20th  of the month.  Hope  to see you!

I touched on some of the “pros and cons” of the question and concluded  “it’s a good time to start a nonprofit organization in tough economical time.”

I’ve heard many nonprofit experts and philanthropic leaders suggest that there are too many nonprofit in America. Their argument is that the more than 2 million nonprofit organizations are simply too many for private donors and the public sector to reasonable support. In my opinion the number 2 million nonprofits is somewhat misleading. That number is simply a number collected from IRS data base. I suspect that thousands of these organizations simply exist only on paper, are either dissolved or have not function for several years.

We heard the usual arguments concerning that there are too many organizations working on the same issues in the same community. There is also the old argument that the bigger more establish organizations can do a better job. These same arguments have been around for a long time and it appears that they are more vocal or receiving more coverage during these tough times.

In my opinion, the people who are raising these same old arguments are simply not dealing with today’s realities. We find ourselves fighting a financial crisis that has cause the collapse of many of our most successful industries. Unemployment has reached nearly the 13 percent level. More people are in need of the services that nonprofits provide. Yes, I agree with the argument that a  nonprofit should attempt to be more efficient and effective.  However, let put the arguments on hold and do everything we can to develop and support our communities with the help of the nonprofit sector, including encouraging and supporting the start-up of new nonprofit organization.

We need to strengthen the nonprofit section by using web based tools that make training, fund raising,  record keeping, recruiting and contact management more efficient and effective during good and bad times. We should also take a look at the for-profit sector where the industries giants were merely form over substance organizations. We now see a real picture of who is effective  in running their organization. It appears that the big boys were the worst managed but asked for the biggest bail-out. The same may hold true in the nonprofit sector. Don’t lock-out or deny the development of new nonprofit. The donor and public section should be able and will decide which organization they want to support.

Yes, this is a great time to start a nonprofit because President Obama is dedicated and encourage American to work and volunteer in the nonprofit sector.  President Obama in his inauguration speech said, “What is required of the us now is a new era of responsibility- a recognition on the part of every American that we have duties to ourselves, our nation and the world, duties that we do not grudgingly accept but rather seize gladly, firm in the knowledge that there is nothing so gratifying to the spirit so defining of our character, than giving our all to a difficult task.” The task at hand is the remaking of America and helping those less fortunate than us. The President also stated “To the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean water flow, to nourish starved bodies and feed hunger minds.” As bad as our crises is, it’s many times worst in other part of the world.

President Obama called on all Americans to help make their communities better through community service.  Accordingly, I do not think there are too many nonprofits, there are not enough to handle the stress that the economy is placing on our nation today and for sometime in the foreseeable future. There are too many nonprofit that hang on to out-dated mission statements, shun older and/or younger helpers and simply not providing the needed services.  We need new organizations, new people and new ideal. This new influx of people will come from the new retiring baby boomers, students and those that have responded to the call of our President.

In my next post (around June 5th) I will talk about The Obama Administrative Policy toward the nonprofit sector.

See you soon!

Please take a look at my newsletter for other tips, resources and valuable information.


In this moment in history, “What’s your role?” Have you really thought about what service(s) you can offer to your community? Can you tutor a child, help a senior or provide a hand.  Advocating and supporting legislation that will assist in solving our nation economical problems will be helpful. Everyone can play a role.

If you know of any nonprofit organizations doing great work offering, please sent me an email. The organizations may get mention in a later post or may even get listed as a resource on my web site. Please take a look at my newsletter for other tips, resources and valuable information.

If you know of resources that you think would be helpful to other, please forward their contact information so that we can share it. Keep checking back here for more information, ideals and comments as we moved forward in these tough times.

See you soon!


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: