Advice for Nonprofit Start-upsby Chataun Denis on 08/09/15
Tip #7 - Don’t give your products or services away for free! Far too many people start nonprofits and plan to offer their services and/or products for free but yet they have no means for generating revenue. This is another bad recipe. Businesses that don’t make money go bankrupt. With the right business model you can simultaneously fulfill your charitable and your financial goals.
Tip #8 - If you don’t know people with money and you don’t have a profitable business model, don’t start a nonprofit! Tax exempt status is for entrepreneurs who know people who have money to give away in exchange for a tax deduction. If everyone in your circle of influence is always crying broke, I guarantee you’ll have a hard time fundraising, and nonprofit is 80% fundraising. Instead of starting a nonprofit, start a for-profit. You can always adjust your pricing according to what your target market can afford.