11/04/2026
He ain’t’ heavy, he’s my brother.
“Love recognizes no barriers. It jumps hurdles, leaps fences, penetrates walls to arrive at its destination full of hope.” Maya Angelou
Here we are in November....and Giving Tuesday is nearly upon us - one day where we can express love for our community and those who serve. For nonprofit teams, you've been planning for this day for a long time...probably the day after Giving Tuesday 2025. For those who are thinking of starting, volunteering, or leading in the nonprofit world, this week's message is for you.
Nonprofit founders must follow steps similar to or the same as those a for-profit business, with additional hurdles to clear due to compliance, the workforce, measures of success, and a different way to think about customers and "competition."
Compliance is a key difference. Just like a for-profit, you establish an LLC (typically) and put all the other controls in place to separate the entity from yourself. You must also apply for 501 (c) 3 status federally for tax-exempt status, and a fundraising license in the state.
A second difference has to do with the people involved. While for-profit LLC operators are wise to have an advisory board, it is not required. A non-profit must establish a board and bylaws from the start. Often the work is done by volunteers, not paid employees.
Customer definition and operating goals are also very different. While a for-profit business targets profit, a non-profit will define success differently. The tool is a logic model that focuses on a vision for the future and the inputs, process and outputs that will achieve it. As a nonprofit, your customer is bifurcated - the consumer and the payor are often not the same.
Finally, other entities - in the for-profit space, we call them competitors. In the non-profit sector, where entities "operate for the public good," it is more nuanced. Funders want to see partnerships and alliance. Customers are shared. Financials might favor mergers to save on administrative and structural spend. I prefer the term "coopetition" to define this tenuous balance.
Many of the readiness indicators I've shared for someone thinking of starting a for-profit business apply as well. Make sure you are clear on your goals, that you know who you are serving, and who wants to pay you to do the work. More importantly, try to find someone else already doing the work, and support them first.
Three great places to learn: the book "A Path Appears" by Nick Kristof. Find your tribe in the Michigan Nonprofit Association. Go to the Annual Conference put on by the Troy Chamber of Commerce.
If you'd like to dig deeper, please contact Judy Wilson about the fabulous one-year Nonprofit Management Certificate program offered by Oakland University. You'll learn about all the topics I shared, and more, from those that are the best at what they do to bring love and caring to our community.
Next week, I'll start sharing some thoughts on operational risk management.