how to launch a non profit pt. 1: three things i’ve learned so far!
This morning I woke at 3:45 thinking about proforma income statements and the advantages of renting versus buying. I could blame the jetlag - traveling three thousand miles to meet with volunteers, brands, and those who may be potentially interested in helping, in any capacity, launch a Fashion For All/Beauty Cares holiday event - but really it’s the excitement that comes from the prospect of creating something auspicious and worthwhile. For months, I’ve been recording my journey in launching this new venture in neat, 140-character count clips, but I’ve decided to use this space to chronicle my proverbial roller-coaster ride. In upcoming posts I’ll shed some light on everything from the very nebulous and exhaustive legal and financial 501c3 tax-exempt process, to all the work that goes into selecting a board of directors and selecting non-profit partners, to a behind-the-scenes look on launching an actual event. However, today I’d love to share three things I’ve learned on the journey thus far:
•Don’t regret the finance degree: For years, I bemoaned the fact that I held analyst & associate positions in two major banks (commercial & investment), where I spent most of my time analyzing financial statements, running projections, and thinking about EBITDA and asset turnover. However, nearly a decade later, I’m realizing that having a fundamental understanding of basic accounting and a comfort with numbers is an asset. For my tax-exempt application, I have to show a 3-year projected net income statement (income statement is simply a financial statement that reveals operating results for a period in time. More explicitly, it documents income minus expenses, depreciation, taxes & amortization). I’ve been struggling with this because although I’ve outlined all potential expenditures, income from individual, corporate, and government sources is the giant unknown. How do I present a realistic projection when the critical element is “X”? Talk to me in a few days.
I’m also questioning the cost-benefit of renting equipment for the Fashion For All pop-up store events (a continuous hit to the income statement and cash flow) or should I buy all the racks, tables, mirrors, etc, and incur a one-time hit, knowing that I’ll have to depreciate, amortize, store, and carry these assets over time? What might look good on paper might be unmanageable in real life, as I’m thinking how realistic would it be for me to store equipment in St. Louis (one of my 12 launch cities) to be used twice a year, versus negotiating favorable rental rates without having to worry about the insurance and other related issues on carrying equipment.
•Branding is key: Although I know how to articulate my vision and mission statement on paper, translating that visually has been a challenge. From creative copy to logo design to business cards to press kit and leave-behind brochures, I want to ensure that I’m not only communicating what Fashion For All is, but the brand attributes, motives, values, and alliances, have to be abundantly clear. When speaking with potential donors, sponsors, etc, I have one chance to make a good first impression. I could be as effusive and passionate and articulate as I can be, but the literature and visuals I leave behind are also important. I’ve spoken to some non profit founders who, after a few years, finally focused on branding, and they’ve all relayed that articulating who you are verbally and visually at the onset is key, and saves work down the road. And although I have a background in marketing and project management, I’m not a branding and design expert. So, much like the process of finding an agent, I exhaustively researched online portfolios, asked for referrals, and met with a few consultants who would be interested in taking on FFA pro-bono, with a contractual tiered payment schedule. Just because I plan to launch a non profit, doesn’t mean I don’t believe in remunerating professionals for their hard work.
As of this week, I’ve found a terrific match - key! Just because someone offers you gratis services, it’s important to find a great working partner rather than enduring hardship down the road. So I’ve found a boutique branding and design consulting firm with great clients, energy, and vision. Our intro meeting was productive, and our managing styles are very much in sync. We’ll meet again to sort out contracts and, more importantly, host a creative brainstorming meeting. This entails me coming with as much visual materials as possible (logos, fonts, pictures, clippings, etc, which inspire, excite, and intrigue me) and a concrete list of the brand attributes (women empowerment, entrepreneurship, focus on independent and emerging talent, fashion made accessible, an overall warmth and playfulness juxtaposed with the educational aspect of the community resources element of FFA, etc), and hopefully they’ll translate my collected portfolio into a clear, articulate message.
•For every twenty doors that slam in your face, one will eventually open: Lately, I’ve become very accustomed to rejection and the words ‘no,’ ‘cutbacks,’ as well as the phrase: ‘a reduction in donations to non profits.’ Ouch. However, persistence is key, and respecting people’s resources (or lack thereof) is also paramount. Cultivate relationships, even those which do not seem immediately advantageous, organically, because a. it’s good karma b. it’s good business c. your professionalism, respect, and flexibility may gain you assets in the long term.
I’ve learned not to take rejection, especially in this precarious economic climate, personally. I’ve also learned to be direct and explicit in my requests. Much like a honed cover letter or an agent query, be as succinct and engaging as possible. Don’t dance around asking for money or someone’s resources and time. Your insecurity will reflect in the wordy verbiage. Perfect your verbal & written elevator pitch, and detail, in one line, what you’re requesting, and how that party could benefit. And keep asking. Keep following up without being obnoxious. And don’t be afraid to ask for referrals. When seven firms rejected my solicitation for branding pro-bono work, I finally found a firm who is a perfect match. So be persistent, energetic, realistic, and resourceful.