There is a philosophy, widely subscribed to in the n-p sector, that views nonprofit start-ups as having a responsibility to the sector and to society to prove themselves viable before looking to raise funds from (too far) outside of the founding group.
Just because they may have a valid purpose, and may come to serve a real need in society, doesn’t mean that they are viable. The broader community should not be asked to fund a start-up until the founders have proven that the NPO can-and-will survive.
Many (most) foundations operate on the premise that there are too many needs and too many needy people to waste resources (money) on those NPOs that can’t survive.
Unless a new NPO has a “guarantee” of sufficient income from government support, fees-for-service and/or a huge endowment, there will, at some point, have to be a reliance on fundraising.
If a group of “founders” can’t or won’t (financially) support and get those people close to them to support their own organization, why would any individual or foundation want to risk their resources on an organization that’s not proved its viability?
There have been too many organizations where the “founders” have bragged about giving of their time, effort and heart; but they steadfastly refuse to commit their own funds.
That is the stage in the life cycle of an NPO where they are most likely to fail — where they (the founders) won’t give, but expect others to support what they consider important !!??
There’s no rule that says that every NPO has to survive, or should !! As “rich” as society might be, there are limited funds available for NPOs, and only those that prove themselves viable, should get some of society’s resources.
An NPO that cannot prove its viability (probably) shouldn’t be seeking broad support … and probably shouldn’t survive.
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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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