You Can Do Good Without Starting a Nonprofit

December 22, 202529 min read

You want to make a difference. That doesn’t mean you need to file for 501(c)(3) status. In this episode, I’ll explore creative and low-risk alternatives to launching a nonprofit, including collaborations, fiscal sponsorships, and platform-based impact models.

Episode 161 | You Can Do Good Without Starting a Nonprofit

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Speaker 1 (00:00):

You want to make a difference in your community, but it doesn't mean that you need to file for a 501. In this episode, I'll explore creative and low risk alternatives to launching a nonprofit, including collaboration, fiscal sponsorships, and platform-based impact models inside this episode.

Speaker 2 (00:21):

Welcome to On Air with Amber Wynn, where nonprofit leaders learn to fuse passion and commitment with proven business strategies to create long-term funding, impact, and sustainability. And now here's your host and resident Philanthrepreneur, Amber Wynn.

Speaker 1 (00:44):

Hey fam, it's your girl. And today we're talking about how you can do good without starting a nonprofit. Last week we talked about the difference between a for- profit and a nonprofit, and I really wanted to just talk a little bit more about how you can do good without starting in a nonprofit. Now people ask me all the time, "Amber, why are you always trying to convince people not to start a nonprofit?" Doesn't that impact your business? No, it doesn't. I'm here to support both nonprofit leaders and small medium sized businesses on how to do good in the community. Doesn't necessarily mean you have to start a nonprofit. Listen, I am here to share with you ways to support your community that most aligns with your goals and mission. If that is being a for profit, businesses do good all the time. They're called corporate social responsibility initiatives.

(01:43):

And as small businesses, we can do more to increase our impact in the community and we don't have to start nonprofits. Just like corporations don't, neither do you. And you can get the benefit. So it's like a double win, right? As a nonprofit consultant, I have what would be considered a corporate social responsibility. It's called funding rest. Having been an executive director, it is exhausting. You work hard. It's somewhat of a thankless job. And so my mission is to support the people who are doing the work out there. So I Fund Rest. I fund sabbaticals. I fund vacations. I fund insurance. I fund retirements. And my goal is to get other small and medium sized businesses, franchises to do the same. Because when we have individuals out there doing the work, but they can't secure enough resources to take time off, they get burnt out.

(02:47):

The nonprofit sector has the highest burnout rate of any sector. It's 54%. And it's because funders typically only fund programs, but it's the people who deliver the programs, right? So my goal is to educate more of our businesses on how they really can make an impact. And making an impact looks like making sure that the people who are doing the work in the community stay around longer to do the work. When we burn people out and they leave the community, they take with them their resources. They take with them their lived experiences. They take with them their relationships. So if our people are allowed to rest, they're entitled to vacations just like we are, then they'll stay around longer. And if they're allowed to rest, then they can share that information with the next generation of leaders. So I am committed to creating a movement where small businesses, medium sized businesses create very vibrant but different corporate social responsibility initiatives where we support the people who are doing the work in a way that traditional philanthropy is not.

(04:01):

Traditional philanthropy is going to do what it's going to do. We're going to let it continue to be traditional. But I think that we as entrepreneurs need to step into that entrepreneurial spirit, right? We do things differently. That's what makes us entrepreneurs. We find an idea and we put a spin on it. I want to do the same thing with philanthropy. I want us to be able to support nonprofit leaders who need the support, not in programs, but in indirect costs, in overhead and operational expenses, because that's where it's going to make the most impact. If all of us come together and we're able to donate to a fund that's going to allow a nonprofit leader to retire, then we're making an impact in the community. A lot of our nonprofit leaders die at their nonprofits. Why? Because they can't afford to retire. Funders don't support 401ks.

(05:00):

They fund programs. So how are they supposed to retire? So being a business owner, having been an executive director, my goal is to teach more small and medium sized businesses how they can really make an impact in philanthropy. And it starts with establishing a charitable fund and funding operational costs. I get really irritated when people say, "Oh, they're sitting fat." Nonprofit leaders do more work in our community than for profit leaders. They're dealing with the trauma, they're dealing with the issues that ... Or their society issues. We're not doing that. Most of the people who are in the for- profit sector, they're doing technology.

(05:50):

They're doing things that really don't address the social ills of our community. Nonprofits hold up our society, and so they should be paid for that. That's why I don't like the word nonprofit. I wish we could rename it for purpose organizations. We're here for a purpose. It doesn't mean that we shouldn't make a profit. We should get paid for the work that we do, just like teachers should get paid. Yes? So today we're going to talk about how you can do good without starting a nonprofit. Nonprofits have their space. They're doing their work. They're working within the confines of what the IRS is saying they can do, but we have the opportunity to really make an impact. And when we come back, I'm going to dive into what that could potentially look like when we come back. Are you looking to leverage your 501 tax exempt status to get products and services donated for an event, silent option, or to support your program, but aren't quite sure what to say?

(06:47):

Get the donation request letters toolkit. It provides you with the templates you can customize to fit any request. Eliminate the guesswork of what to say, how to say it, and what to offer potential donors as benefits for their donation. Ah. You had no idea you should offer donors something in exchange for their donation, did you? Offering benefits triples your response rate. Plus, the toolkit comes with a donor acknowledgement form template. It's the form you give them after they donate. This toolkit has everything you need for a successful donation request. Order your copy today. Hey Pham, it's your girl. And today we're talking about how you can do good without starting a nonprofit. I want to start off by saying when people start nonprofits without actually understanding what that entails, they usually start off at a deficit, right? Because they'll put in the money to start a nonprofit without understanding the real costs, right?

(07:40):

There's time, there's money, and then there's building out the infrastructure. If you're working two jobs trying to do that, like you're working your nine to five, but then you're working your other job, which is your nonprofit. There's a cost for that. There's time away from your family. There's money that you're taking away from your personal savings, and it's just not a win-win. So if you really want to make a difference in your community, it's just important to have all of the information because running a nonprofit is running a business. It's not something that you're doing on the side. If you're only doing it on the side, it's going to take a lot for you to scale. It's going to take a lot for you to really be able to bring in consistent revenue because you're not delivering programs full-time, you're doing it halftime. So you're getting half the impact.

(08:29):

You see what I'm saying? So I just want everyone to know that there are alternatives for starting a nonprofit that does not require you to start a 501. Why is that important? Because the IRS says that as a 501 you have to do certain things. Number one, the monies that come in through the organization, they don't go to you. They have to go back into the organization to support the mission. So if you have a nine to five and you have a nonprofit, the monies that come in is going to go in to support the nonprofit. Where's your wealth? If you have a company, you're running the company. If you start a nonprofit, you're basically starting another company that you're running. It's just got an altruistic purpose. It's challenging enough just running a for- profit, right? So what are some of your alternatives? Well, I like to say to people, if your real goal is to make a difference in your community, do things that support nonprofits that already exist.

(09:33):

What does that look like? It could be serving as a volunteer. If you have a special expertise, let's just say that you have a background in data management, data input, maybe you can help a nonprofit set up their CRM. Having systems in place is the most powerful thing you can do to help a nonprofit scale. If you are an accountant with nonprofit background and experience, helping a nonprofit to get their books in order, that is extremely impactful because having an accounting system is going to allow that nonprofit to deliver on the promises or the requests that a funder's asking for for financial statements. When people start nonprofits, they're not thinking about that. They're not thinking, "Oh, I'm going to have to do financial statements and reports." You can volunteer to help nonprofits set up those backend systems. Also, if you're thinking about starting a nonprofit and you know nothing about how to run a nonprofit, don't start one because you're going to struggle.

(10:36):

Learn what that entails first and you can do that by being fiscally sponsored. A fiscal sponsor is an organization that is established to incubate these programs, right? So let's just say I wanted to create a program that's going to teach girls how to become entrepreneurs. I don't have to start a nonprofit. I can just run the program. I'm going to leverage the 501 from my fiscal sponsor. So they have the 501 it's their budget, it's their track record that the funder is going to use to fund my program. So I'm still operating as a program. If I have a business, I don't have to open up another business. The difference is they're leveraging the reputation of the fiscal sponsor. So the grant is going to go to the fiscal sponsor. That's why it's important that the fiscal sponsor that you choose is actually a fiscal sponsor.

(11:40):

Pay very close attention to what I'm about to share with you. I have people say, "Oh yeah, this organization is serving as my fiscal sponsor." Just because they have a 501 does not mean that they're qualified to be a fiscal sponsor. I've had too many people coming to me in tears saying, "They got the grant, they never gave it to me. " Because your fiscal sponsor is collecting the grant on your behalf. There is an association of fiscal sponsors where they have to go through some type of qualifications and get certified. That's where you want to get your fiscal sponsor from. Don't just use your aunties who's a daycare and she's got a 501. Don't do it. It's not going to turn out right. When you are a fiscal sponsor, you agree to managing the dollars. That means you got to do the reporting. That means you got to do the financial statements.

(12:31):

If an organization has a 501 but has never functioned in that role, there's a learning curve and you don't want that to be with your grant. I had a client come to me and say, "She used her church because the church is a 501 and she never got her money from her pastor." So I'm just saying you have to be careful. There are fiscal sponsors who are in place who can support you with getting funding for your program. You never have to start a 501. You can test run to see if you even like it, right? I've had clients who've been fiscally sponsored their entire existence. They love it because the fiscal sponsor, they track the finances, they produce the reports, all the things. I'm going to suggest if you don't have nonprofit experience, try a fiscal sponsor. You get to test run it. You get to see what running a nonprofit is like, and you get the support, the backend support.

(13:34):

If you don't have nonprofit experience, this is one of the best ways that you can learn about how to be a nonprofit before you become one. The other thing that you want to do is think about before you start your nonprofit, trying it out. So let's just say if you want to do how to become an entrepreneur, you can go to a school district and say, "Hey, I'm thinking about starting a nonprofit. Would you mind if I work with maybe three or four periods of your class where I run my program for free? I want to do it for about six months just so I can work out the kinks." They're going to say yes, or you can even partner with another nonprofit. Let them know, "I'm thinking about doing this. Can I partner with you to work with the clients you already have? Try it out.

(14:25):

I can tweak my curriculum." People are like, "Well, why would I do that? " You're going to try and figure it out anyway, right? If you've never done it before, you're going to start your programs, you're going to put out flyers. Why not partner with a nonprofit that already has a collective body of people that you don't have to recruit. They already have it. They already have the meeting space, right? You're saying to them, "I'm going to come in and I'm going to provide this program to your clients." They already have systems in place. It'll be easier for you to get the reporting if you need to talk to parents, if you need to talk to ... Reduce the amount of time, reduce the amount of expense. If you're doing it on your own, you've got to pay for some place to deliver the program.

(15:14):

I'm just saying, it's easier for you to do a couple of test runs and you don't know. They may actually love the program. So when they write their next grant, they may include you. People jump into this nonprofit sector without knowing that it's a lot. It is a lot. Test run it first. Work out the kinks. Learn about funding. Learn about recruitment. Learn about all of the things that come along with starting a nonprofit. Do it first. You can do good without actually starting a nonprofit.

(15:48):

When we come back, I'm going to talk to you a little bit about what else you can do to do good in the community without actually starting a nonprofit when we come back. If you're just starting out and have limited resources, you may be tempted to use a volunteer based model for your nonprofit. Funders prefer paid staff because there's more accountability and consistency. But if you want your proposal to be competitive, then having more than just volunteers who come and go is essential. Check out my building and effective nonprofit volunteer program toolkit. It provides all the essential elements of an effective nonprofit volunteer program, things that demonstrate standardization, consistency, and continuity. Learn How to Develop a Nonprofit Volunteer Program, funders feel comfortable with funding. Order your copy today. Welcome back. You're On Air With your girl, Amber Wynn, and we're talking about how you can do good without starting a nonprofit.

(16:47):

Before the break, we covered things like test running your idea before launching a full organization. Partnering with a nonprofit to run your program, just to figure out what the kinks are, or if this is something you really want to do. When people jump into it, they're like, "Man, I had no idea this would take all this work." We also talked about fiscal sponsorship, but today I want to talk to you about doing something that most people don't consider, which is extremely important to a nonprofit, which is serving as a board member. The IRS has said that the board is the governing entity of the nonprofit. What does that mean? That means that the board has the fiduciary responsibility of guiding the organizations. For those of you who run businesses and you're thinking about starting a nonprofit, I really, really, really want you to consider serving as a board on a nonprofit.

(17:43):

Why? Because as a board member, you're able to contribute to a nonprofit in a way that's going to exponentially help them grow. Let me give you an example. Back in 2010, I call it the year of death, and it's when my aunt died, and then two weeks later, my mom died, and then three months later, the love of my life died. It was like this death. So I call it the year of death. And I was devastated and I felt so helpless. My aunt died from COPD, but my mom and my boyfriend, they died from cancer. And it was just the most helpless position that I could be in and I wanted to do something. So I joined a board. It was the Vanguard Cancer Foundation. And in that space, I felt hope because at the Vanguard Cancer Institute, what they do is they take some of the cancer out and they run it against all of these FDA approved chemotherapies because as you know, chemotherapy is poison.

(18:46):

And so when you go through these rounds and rounds of chemotherapy, it poisons your body. And so what the Vanguard Cancer Institute does is they test it and they identify which cancer actually kills the cancer in your body, right? Which chemotherapies kill the cancer in your body. So I was able to volunteer for this nonprofit and with my experience, I brought a wealth of information to this organization, right? 30 years of, what, the time, 25 years of nonprofit experience, I helped that organization to grow. I also brought diversity to the board. I was the only African American on the board. So now I got to introduce these therapies to the African American community. What I'm saying to you is, yes, you can start a nonprofit, but more importantly, you can take your experience as a business leader, your connections in the business community to support nonprofits that really need it, right?

(19:50):

When you are having these board meetings, you're looking at financial statements. Business people understand financial statements, right? You're looking at what's in, what's being spent, what the expenses are upcoming. You know how to forecast. You can help these nonprofits really shore up their organizations. If you have connections, let's just say you're a developer, you can tap into resources that will help nonprofits scale, that will help them diversify their funding strengths. Sitting on a board is probably one of the most powerful things that you can do that will help you do good in your community. You get to stay running your organization. You meet once a month, you bring in your resources, you pay your board dues, you support the executive director. Listen, being an executive director is probably one of the hardest, most loneliest things you can do, right? You've got your community relying on you, you've got your staff relying on you, or you've got volunteers relying on you.

(20:56):

The board is supposed to be that entity that supports the executive director. If you are a business owner, you know what it feels like to be on your own. As entrepreneurs, we live this lonely life, right? But you can be the support for this executive director. They can bounce ideas off of. You can introduce ideas. You can introduce technology, right? So it may be something that you never thought about before, but think about joining the board. And if you don't have board experience, guess what you can say to the executive director? Yes, I want to be on your board. Do you provide board training? Make that a priority. Help that executive director bring in resources to make sure that you are trained as a board member. Maybe your executive director only knows about delivering programs and they're not really sure what a board's supposed to do.

(21:53):

Help them generate resources to bring in nonprofit consultants that's going to teach you how to be a really good board member. When a funder looks at an application, they ask for a board roster because the IRS has said that the board of directors is the entity that is responsible for guiding, supporting, and funding the nonprofit. If you are an established business owner, you're going to help that nonprofit increase their credibility. It is one of the most powerful things you can do. And if you understand your role and maybe your executive director doesn't, then you can say, "Hey, we need to get board training to make sure that we're supporting you in all of the things." So I just really wanted to put that out there because a lot of people don't understand how powerful it is to be a board member, right? And you can reach out to nonprofits and say, "Hey, I'm interested in sitting on your board.

(22:54):

Can you talk to me a little bit about your mission? Talk to me a little bit about what your goals and objectives are. I really want to contribute to the community, and I think sitting on your board would be a valuable way of doing that. " So today, I just really wanted to dive deeper into what you can do to do good in your community without starting a nonprofit, right? Because you're starting a whole business. And if you are a business and you really want to contribute to the community, then think about doing that without starting a nonprofit, a 501. Start a charitable trust, support the nonprofits that are already doing the work in the community. It is a win-win, y'all. I'm tired of us duplicating the same services and putting more competition in the pot for this small pool of money. We can make a difference in the nonprofit sector, but we got to be smart about it.

(23:51):

We have to be strategic. And I think for those of us who are business owners, we have a lot that we can contribute to philanthropy. It's just we need to do it in a way that's going to make a difference. So that's what this episode has been about. And now it's time for Ask Amber. It's the time in the episode where you get to ask me your questions and today's question is coming from Kevin in Beaumont. Kevin, what's your question?

Speaker 3 (24:16):

Hi, Amber. This is Kevin. Kevin from Beaumont. I've been going down a rabbit hole watching all of your podcasts. Man, these are a goldmine. Thank you so much for sharing this information. It's really helpful and useful. I've been submitting grants for about three years now and haven't been funded yet. I thought it was just a numbers game, but I just watched the video where you said grants is not a numbers game. It's about writing a competitive proposal. I guess my question is about my programs. I use the gardens ecosystem to teach basic math, chemistry, and physics. I thought that was pretty cool, but I guess funders don't. My question is, how do I make my programs innovative?

Speaker 1 (25:04):

That's a very good question. How do I make my programs innovative? So what makes a program innovative is what the program topic is, who's delivering the program and how the program is being delivered. Right now, AI is all the thing, but five years ago, if you had introduced AI in your youth programming or whatever program, that would have been innovative because it's new and it's different, right? Maybe you could have said, "We're going to help youth who struggle with cognitive learning, leverage AI to support them and how they process things." Or maybe it's, "Okay, there's a new way for us to do debate with youth." Instead of it just being the mock trials, we're going to take kids from different communities and we're going to ... One of the things that I did, for example, to try and strengthen philanthropy is to have youth whose families have family foundations and to teach them how to be better philanthropists by partnering them with youth from under-resourced communities.

(26:17):

So the youth from the under-resourced communities will put together proposals and then present them to the youth from the family foundations. So it's like real time experience where kids learn how to advocate for the needs in their community and then the kids from the family foundations get hands-on experience on how to fund what they're looking for. So it's really about, Kevin, who's delivering it, right? If it's youth led or if it's from an industry, then that's going to be innovative. How it's delivered. Is it using technology? Is it being in a different environment? Those are the things that make your programs innovative. Who's delivering it? What's the topic and where it's going to be delivered from? Those are the things. All right? I hope that helps. Now we are going to move to my favorite time of the episode when I get to shine a light on the nonprofits who are doing the work in our community.

(27:17):

Today's conversation is with Shanise Hart. She is the executive director of the Three Hart Connection, and she provides support to women who are in domestic violence, domestic abuse situations, and she supports them in a way that is, as we're talking about for Mass Gamber, innovative and really culturally sensitive. And she really has a heart for her community. We'll be talking to her over the next four weeks about what her program does and how you can support her. So let's jump into the first conversation with Ms. Shanise Hart.

(28:08):

Hey, fam. It's your girl. Today I'm excited to have in studio with me Shanice Hart, the founder and executive director of Three Hart Connection. We are going to talk about all of the amazing things she's doing, the services she's bringing to community. Welcome, Shanise.

Speaker 4 (28:24):

Hi, thank you so much for having me.

Speaker 1 (28:26):

We're so excited to have you here. Let's just jump right in and talk to the audience a little bit about why the organization was founded, how it was founded, all the things.

Speaker 4 (28:38):

So why the organization was founded? Well, I am a survivor of domestic violence and during my time in service, I served in the Air Force for about eight years. I had a really interesting experience with domestic violence and receiving resources and whatnot. And I saw that there was a need. So more actually, honestly, it was a bit more of an outlet for my own healing was through volunteering. And then over time, seeing that, having the lived experience and on top of that, leaving the armed forces and coming back home here in the Antelope Valley, I saw that what I experienced in the military was like tenfold out in the civilian population as far as the demographic of survivors out here in the Antelope Valley. So I decided alongside my sisters to start Three Heart Connection to start, or excuse me, to provide services for victims and survivors of domestic violence, but that really evolved from just services for victims.

(29:52):

We ultimately wanted to get to the root cause because there's an issue there, right? And not just I'm trying to fix the issue, but trying to prevent the issue. I like it.

Speaker 1 (30:05):

Yeah.

Speaker 4 (30:06):

We changed our scope more so to focus on prevention and with that comes more of a focus for youth.

Speaker 1 (30:13):

Got it.

Speaker 4 (30:14):

So that's where we are today, providing services and opportunities for youth while also educating them on teen dating violence.

Speaker 1 (30:22):

I like it. Just for clarification, so your personal situation happened while you were in the military?

Speaker 4 (30:29):

Yes, it did.

Speaker 1 (30:30):

And you didn't get much support while you were in the military or you didn't know where to go?

Speaker 4 (30:38):

It was a combination of both. Okay. Yeah. So the support, the mission comes first when you're serving. So a lot of times individuals like myself, when we do come forward, it's kind of like a, "Hey, it happened, but we got to move on. " Especially during that time, our country was at war. And so my deployments and the missions that I had were not in my opinion, but to those who I served under, that was more important.

Speaker 1 (31:11):

More important. Right. Like man up.

Speaker 4 (31:14):

Pretty much.

Speaker 1 (31:15):

Okay. All right. So in the nonprofit sector, this is one of the things that I struggle with. We have so many issues that really plague our society. And a lot of times as nonprofits, we unwillingly sustain the problem because as you say, we deal with the issue, right? The symptoms and not necessarily with preventing the issue. So I'm excited to hear that. That's not to say that individuals in domestic violence situations don't need support with what happens after it, but I think there's a whole lot more power when we try to prevent it. So talk to us about some of the services that you provide and what you're doing to prevent it.

Speaker 4 (32:11):

Okay. So all of our services and all of the programs are Thriver programs. So before I even go into the details of what those services are, it's important for us to reclaim victimization. And we're more than survivors out

Speaker 1 (32:27):

Here. That's

Speaker 4 (32:28):

Right. So we believe that to truly embody strength and represent who we really are out here, that we're Thrivers. So in that, all of our Thriver programming, we have Youth Thriver programming where we provide ... We're actually smacked out in the middle of our Junior Thrivers program where that is an internship for eight weeks where eight individuals receive a $500 stipend after completing about 64 hours of volunteer time with us and intern time with us, learning soft skills, career development, exploration and training so that they are empowered with education and economic opportunities, resume builders. So it's not just they're spending time with us, but they're going to walk away with something. So we're trying to build on the community, build on our youth and pour into them. And at the same time, they also are receiving our ... We have a workshop that's called Project CJ.

(33:35):

We've fused our Project CJ curriculum, which is Teen Dating Violence or Healthy Relationships. We've fused that with our soft skills training, and that's our Junior Thrivers program. In addition to that, our Adult Thriver programming is a mentor program for women who are thrivers of acts of violence or domestic violence.

Speaker 1 (34:08):

Welcome back. Today we've been talking about how you can do good without starting in a nonprofit. We just wrapped up our first conversation with Shanise Hart of the Three Hart Connection. If you want to go ahead and listen to the full interview, you can just run on over to my YouTube channel and you can watch the whole thing. But if not, you get to hear the conversation over the next three weeks, right? We have four episodes where we have the conversation with Shanise. If you'd like to have your nonprofit spotlight on my podcast, hit me up on any of my socials, and I'd be happy to feature your nonprofit. Remember, a seeing nonprofit is a funded nonprofit. You're doing all the work. You just need the funders to see the impact that you're making in the community. All right, fam, that's all I have for you today.

(34:59):

Thank you so much for spending a half hour with your girl, learning about how you can do good in the community without starting a nonprofit. I will drop all of the links to any of the things that I've mentioned throughout the episode. In particular, if you are a for- profit and you're interested in supporting the community without starting a nonprofit, if you want to establish a charitable fund, I can help you with that. If you are a nonprofit who wants to know how to run their organization more effectively, that's what we have the nonprofit academy. I'll drop the link for that. I got you. That's what your girl is here for. I'm here to support the most amazing people on the planet, and that would be you. If you've liked anything that you've heard, please like, subscribe and share this with your community. And as always, take care of yourself like you take care of your community.

(35:51):

We'll see you next week.

Speaker 2 (35:52):

Thanks for listening. If you enjoyed this episode, subscribe and leave a review on iTunes. Head over to www.amberwynn.net/podcast for the links and resources mentioned in today's podcast. See you next time.



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