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Book Review: Cialdini’s “Influence” – A Must-Read for Non-Profit Fundraising & Leadership

Book Review: Cialdini’s “Influence” – A Must-Read for Non-Profit Fundraising & Leadership

Non-Profit Fundraising

Using The “Weapons of Influence” – for Good

 by Christian LeFer – I had heard about Robert Cialdini’s definitive work, a book called “Influence – The Psychology of Persuasion” referenced repeatedly by my favorite marketing gurus, including Eben Pagan and others but had not picked it up until recently; I regret not reading the book sooner. During my career as a copywriter and non-profit fundraising professional for political candidates and causes, I had learned by reverse-engineering and applying the tactics of getting people to “wake up” from what Eben Pagan calls an often “sleepy, boring existence” of much of everyday modern life – and to take some kind of action – by voting, giving, or volunteering. I had learned the practice, but not the theories, of influence. This is like playing guitar by ear without learning to read music: a limiting, (and frankly, lazy), way of being a musician.

Why “Influence” is a must-read for Non-Profit Fundraising

As a consultant to charitable organizations and businesses who helps organizations in obtaining IRS tax-exempt status, non-profit fundraising, and implementing effective marketing systems, I have been carefully going back and re-visiting (or in this case, just visiting for the first time!) the classics on relationships, sales, marketing and human motivation. “Influence” by Robert Cialdini is among my most valuable reads so far – read on to see why I call it a “must read” for non-profit fundraising and business leadership.

In the revised version of “influence” Robert Cialdini weaves a compelling and utterly readable fabric of what he boils down to “compliance” using analogy, anecdote and applied research. We learn why coercion doesn’t work as well as commitment, how people form and ultimately force themselves to live up to a certain self-image – a self-image often directed or influenced by an outside person or interest who then uses that image to induce behaviors – and we also discover many other truths that many of us would rather not confront or believe about ourselves.

The Moral Imperative of using Your “Influence”Non-Profit Fundraising

What I like about the book, and Cialdini’s treatment of the sometimes disconcerting subject matter, is that he acknowledges that these “Weapons of Influence” are morality-neutral – they can be used for good or for evil. These six weapons, then, ultimately serve those who would use them. Being one who believes that I am fighting for good in this world (which I will admit, is often also the belief of madmen and used car salesmen), shouldn’t I then learn about and wield these weapons as deftly as is possible? Certainly. And I hold scorn and pity for the one who sticks his head in the sand and refuses to learn these arts for the betterment of their fellow man.

My biggest takeaway from this book is that, while we have all used the various weapons at times in our lives, I have a much better understanding of how they connect and reinforce each other. Cialdini uses the story of the Krishnas’ “flower gift fundraising” model to demonstrate how the weapon Reciprocity works with that of Commitment/Consistency. When an expert says we’re running out of some essential commodity, Authority is often powerfully coupled with Scarcity. Web platforms such as Facebook create an overwhelming elixer out of the remaining two two weapons, Social Proof and LikingWhether you are involved with non-profit fundraising or simply as a traditional and foster parent, understanding these six human motivating values is invaluable, even indispensible.

Conclusion: Understanding Influence is the Antidote to the “Sheeple” Syndrome

A Non-Profit Fundraising Essential

The final truth is that everyone from Mother Teresa to your dear old grandpa has an agenda, and has the need to get someone to do something, at some point. It may be in child rearing, in asking for help in a time of need, or in saving someone’s life. The sooner any person understands the push and pull of using influence and it being used on them, the sooner they will lead a more rational, self-directed, and might I say more enlightened existence. Then, when the pitchman, the preacher, or the panhandler makes that momentous appeal in a way that will impact your wallet – or maybe even your very soul – you can go off into eternity having made the a more rational decision, and more likely for the right reasons.

Perhaps no greater contribution has been made to awareness and enlightenment as it pertains to influence than Dr. Cialdini; I predict that my copy will become dog-eared, the pages yellowed as I pick it up again and again over the years, marveling over how my understanding of Influence has benefited me in non-profit fundraising, in business, in parenting, and in life.

Posted as an Amazon.com Book Review by Christian LeFer

 

Tags: Non-Profit Fundraising, Sales & Marketing, Leadership, Book Reviews, Christian LeFer

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eBook Announcement: 7 Deadly Mistakes of Filing Form 1023

eBook Announcement: 7 Deadly Mistakes of Filing Form 1023

Filing Form 1023? Hang on!

I am very proud to announce the publication of my new eBook, 7 Deadly Mistakes of Filing Your IRS Non-Profit Application, written just for you. Just in time, since the IRS recently changed Form 1023 and made it a bit more stringent.

We’ll be releasing this eBook for Kindle and iPad soon,, but I wanted to give everyone who comes to the GetNonProfitStatus blog a chance to get it at no cost beforehand.

This beautiful eBook covers the pitfalls of filing your IRS Form 1023, the “Application for Recognition of Tax-Exempt Status.”

Brought to you by the same folks responsible for our 17,000-page tax code, Form 1023 submitted with just common, honest mistakes can land you in the briar patch of endless delays, frustration and lost opportunity – as your non-profit application languishes on the desk of an IRS bureaucrat in Covington, Kentucky.

One case study I include even chronicles the real-life situation of an organization whose hired attorney accidentally checked the wrong box. Their Form 1023 was held up for  three years waiting for a determination, while donors and staff wondered if they’d ever get non-profit status!

7 Deadly Mistakes started out as just another blog post and perhaps a memo for friends, who are always asking me about what mistakes to avoid when setting up a non-profit charity or ministry organization.

But I can never leave well enough alone, and I ended up wanting to make it a high-value product that would really help change the way people look at the Form 1023 Application and the IRS agents who review them.

Don’t get “owned” by Form 1023!

At around 32 pages, it’s no War and Peace, but it certainly delves into the primary delay-inducing errors that thousands of non-profit founders encounter.

If you haven’t yet, be sure to fill out the form below to grab your copy today. Don’t get “owned” by Form 1023! It covers:

Deadly Mistake #1: Failure to Clearly State Your Organization’s Mission and Purpose

Deadly Mistake #2: Failure to Describe How All of Your Activities Relate to Your Purpose

Deadly Mistake #3: Failure to Complete and Enclose All Applicable Schedules

Deadly Mistake #4: Failure to Include Your Organization Name and EIN on Each Page

Deadly Mistake #5: Failure to Include Proper Addenda and Policies

Deadly Mistake #6: Failure to Address Conflict of Interest Issues

Deadly Mistake #7: Violating IRS Rules by Indicating Non-Exempt Purpose or Activities

But more importantly, we’ll help you navigate your way past these rocky shoals and give you principles, some concrete advice and action items to help you put together a clean, properly formatted and presented Form 1023, IRS Application for Tax Exempt Status.

Setting Up a Non-Profit: Non-Profit Organization Names

Setting Up a Non-Profit: Non-Profit Organization Names

How to Name Your Charity or Ministry

“How do I pick a name for my non-profit?” – hardly a week goes by that I don’t get asked about non-profit organization names via email, phone call, or directly by friends. But while it’s important to select a good name for your charitable organization, it’s not something to get in the way of setting up a non-profit and achieving your mission.

(Click here to access our video on Non-Profit Organization Names)

Over the past 18 years, I’ve been involved in naming products and organizations, and brand-building in general. When I started my first “real” business (the kind with revenues),  certain enduring principles had emerged on how “winner” names are picked by “winner” companies and organizations.

But our world has become smaller, communication has sped up, and the competition for attention has increased exponentially. Solid principles of non-profit organization names and marketing are now even more essential.

THE #1 BEST PROCESS FOR SELECTING NON-PROFIT ORGANIZATION NAMES

Whether you’re setting up a non-profit or commercial venture – whether you want to be the next Red Cross or impact a few local neighborhoods – the challenges and principles of names for organizations are the same.

Keep this process simple and work through it. While non-profit organization names are important, naming is not nearly as crucial as getting your mission underway.

You’re setting up a non-profit because you want to give back to the world. The best way to honor the people you need to reach is to invest thought in your group’s name. You can do that by using my “Four Principles of Non-Profit Organization Names” under Step 2 below.

4 Steps to Selecting Non-Profit Organization Names

STEP 1: Generating names. I call this a “brain dump.” Just get a pen and legal pad (or open a Word Doc, but I still like a pad because you can carry it around and jot down ideas) and start writing. Don’t limit yourself! There are no good or bad ideas, just write as many different non-profit organization names as you can.

STEP 2: Refine your list. Whittle down the big list using my “Four Principles of Non-Profit Organization Names”:

  • Principle 1: Simple and easy to remember – but avoid “cute.” You want to be taken seriously as an organization.
  • Principle 2: Say & Spell. The name should be easy to say & spell.
  • Principle 3: Illustrate the organization’s mission or function – that’s why I love “Big Brothers and Big Sisters” and “Adopt a Platoon” as non-profit organization names.
  • Principle 4: Evoke hope or another positive core human motivating value.
  • Principle 5: Avoid potential cultural or other less-than-obvious negative connotations, including potential acronyms. How will your non-profit organization name be shortened by reporters? How does it translate?

Once you apply those principles, you should have a nice short list of possible non-profit organization names to move on to STEP 3.

STEP 3: Focus Grouping – Make a list of friends, family, and local business people or other trusted folks in the community to contact. As you slowly read your list of non-profit organization names, ask them to tell you the first thing that comes to mind.

STEP 4: Search & Determine Availability – Three ways you should search:

  • Google Search
  • A name availability search for your state
  • A relevant domain name for your website

(The last two can be done through our Non-Profit Organization Names Search resource page at GNPS.com: CLICK HERE)

Once you’re done with these, you’re ready to make a solid for-profit or non-profit organization name selection and move on confidently through the rest of the process of setting up a non-profit.

If you’re following “Create Your Non-Profit in 5 Days or Less,” here are the Next Steps:

Day 1 – We covered Naming an Organization right here [Video Link]

Day 2 – Covers Filing your Entity [Video Link]

Day 3 – Recruiting Your “Beginning Board” of Directors [Video Link]

Day 4 – EIN and Getting Your Bank Account [Video Link]

Day 5 – Developing Your “Elevator Pitch” [Video Link]

Thanks for visiting. If you enjoyed this post on Non-Profit Organization Names, please go down below and hit the “Like” button, leave a comment or ask a question – and tell your friends!

How SMS Text Donations Work for Small Non-Profits

How SMS Text Donations Work for Small Non-Profits

TEXT DONATIONS

I constantly receive questions about text donations. The most familiar form of text donations is the process utilized by non-profit organizations like Red Cross for disaster relief.
And the best example of this is probably the “text the word Haiti to 90999” campaign the Red Cross ran recently.
Although text donations made their debut prior to 2010, this sample became an “eye opener” for many non-profit organizations due to the incredible amount of money raised  for Haiti using this method.

The text donations process is quite simple: Donors text the keyword HAITI to 90999 and receive response text confirming text donations. The donor then simply sends a response with the word “yes,” and the donation amount is added to the donor’s cell phone bill.

Although the text donations process is extremely appealing to many charities, various limiting factors are involved.

The organization must first apply to have the ability to launch such a campaign. For example, an organization must show it reported a minimum revenue of $500,000 in the previous year, must be registered as a soliciting charity in all states that require such registration, and meet several other requirements.

Additional limiting factors include cost involved (limited to $5 or $10 donations), no recurring donations, no donor information gathered, and the rather lengthy amount of time it takes to receive the donated funds (typically 90 or more days).

The options available to organizations that wish to implement fundraising by text donations are not as straightforward as one would like – but hang on – there is hope for your non-profit!

Solutions offered to small and mid-sized nonprofits for text donations have drawbacks.

There are companies that provide text donations services to non-profit orgs that do not set the application limitations mentioned earlier and that even allow for any amount of donation by the donor using his or her credit card. This method, in turn, will speed up the funding process to the NPO.

One important limitation this text donations method presents, however, is that the donors are required to first visit the giving page of the charitable organization’s website and register their cell phone numbers allowing them the ability to utilize their cell phone to make a donation via text. If donors are forced to go to a website to register their cell phone numbers, why wouldn’t they just complete the donation online instead of making text donations?

There are several other processes that come to mind as well. One is the process of texting a keyword to a specific number and then receiving an automated call asking the donor to input the amount of the donation and their credit card data. Imagine if you will issuing a call to action at an event with several thousand people eager to give; would the donor be able to effectively hear the prompts on the phone in that type of setting? Another very recent process requires the donor to download an app into their phone in order to make a donation. All of these are limitations to groups that don’t fit the “mega-charity” profile when it comes to maximizing fundraising via text.

Only one company we’ve found overcomes these problems.

So, what’s a small or medium size non-profit to do? Funny you should ask – there is one system available that addresses and eliminates all of these limitations and concerns, MobiPledge. (Full disclosure – this is my company). MobiPledge uses a unique “patent pending process” that solves all of the problems outlined above:

  • MobiPledge allows the organization to customize the information it captures about the donor
  • MobiPledge allows for any donation amount
  • It is fully interactive
  • It’s very inexpensive
  • Perhaps best of all, MobiPledge allows the NPO to receive their text donations funds within 48 to 72 hours!

For more information on text donations, please visit www.MobiPledge.com
Tony Cammarata
CEO, MobiPledge

PS: Please feel free to contact me about text donations, I am always happy to help!

(NOTE: To see my new video post on text donations, click here – Thanks! - Christian)

College Not Required for Massive Non-Profit Success

College Not Required for Massive Non-Profit Success

Once upon a time, if you wanted to start a non-profit, it was preferred that you had a decent pedigree, that you were a “pillar of the community”. And you certainly didn’t want to be a “failure” in the eyes of society.

Even today, there is a stigma associated with the phrase “college dropout.” You’re a failure, a bust of a student, someone who couldn’t hack it in academia. But, quite often, the non-conformists who couldn’t hack the structure and tempo of higher education are exactly the kind of people who can blaze trails and think outside the box, in a way that the world desperately needs.

Maybe even start a non-profit.

In other words, simply because you couldn’t get good grades doesn’t mean you can’t be a success when the rubber hits the road. Think I’m kidding? Academic “losers” who started with a non-profit idea include: Donald Miller, bestselling author, founder of The Mentoring Project and Jeffrey Hollender, founder of “green cleaning” product company Seventh Generation and non-profit Household Toxins Institute (and now a noted author on the socially responsible business movement).

There’s also  Talia Leman, who at 10 years old, united kids across the USA to raise over $10  million for hurricane Katrina/Rita relief, then leveraged that into RandomKid.org, which empowers kids and adult to empower others.

Are you a “misfit” who wants to start a non-profit? You wouldn’t be alone – in fact, I’d be right there with you!

Case in point: many who have not attended or dropped out of college, or even high school, decided to start a non-profit and have found success in this niche. It just goes to show that you don’t need an advanced degree to be considered legitimate in the eyes of your community, or to make your non-profit organization somehow “more official.”

After all, the main obstacle to making your non-profit official is IRS approval. And we can help you with that.

You might not be an internationally-acclaimed pop star, business tycoon, or artist – but that shouldn’t stop you from following your dreams of establishing a non-profit organization that truly improves the world. The lack of a college education is not always an obstacle. It may make for a speed bump in your white-collar job interview, and it might sometimes be an obstacle when visiting the status-conscious parents of your bride-to-be, but thankfully, we still live in what can be considered a “meritocracy”. Obstacles can be overcome, circumvented, and even, well, smashed right through. After all, who can relate better to the needs of challenged or disadvantaged people: a connected Ivy-League blue-blood, or someone who has been there and overcome adversity? (Hint: Start thinking about the degree you already have – in the University of Hard Knocks!)

There’s no reason you cannot survive and even thrive helping others once you start a non-profit ministry or charity, regardless of education level.

You’ll also find that working for a non-profit organization can be a great way to land a job and get started on your new path, without a formal education. Both start-ups and established non-profits are looking for quality workers, not necessarily college grads. You’ll find that many non-profit organizations out there are fueled, and funded by college dropouts, or people who didn’t pursue their college education at all. Sources for such jobs include: idealist.org, opportunityknocks.org, and philanthropyjournal.org, and there are plenty of resources, including getnonprofitstatus.com that will assist you to start a non-profit.

Ultimately, what determines your level success is not your degree. It’s your heart, your drive, and your passion. There are countless examples of real-life successes who did not complete college or even high school. What made them a success is the same as what makes anyone a success: dedication and focus.

If you’re a college dropout and want to start a non-profit enterprise, what’s your best first course of action? To go back to school?

Probably not. Just as entrepreneurs start companies instead of sitting a class learning things that will be outdated long before graduation day, I recommend researching the world of non-profits, download our free report, and consider what you really want to do with your life. And then dive right in, the water is just fine!

If you or someone you know has experience with a 501(c)(3) despite the lack of a college degree, please comment below and share the story. If you want to start a non-profit – and like what you are reading here, please “like” us on Facebook and add us to your favorites!

 

Gulf Spill Presents An Opportunity to Serve

Gulf Spill Presents An Opportunity to Serve

 

It’s something that can be used for good or evil: the fact that from crisis comes opportunity.

But when the crisis is going on, the real visionaries are the ones who don’t wait for hindsight to prove them right. They’re the ones charging in, doing good for the world, and showing others that you don’t have to only embrace good situations to make something good happen.

We see that more than ever in places where there are giant needs to fill. If you want to start a non-profit organization today, there may be no better place than in the gulf coast region of the United States.

Yes, that gulf coast region. The one so infamously affected by the BP gulf coast oil leak. Coastal states like Louisiana, Mississippi, Alabama, and Florida.

But why does this create such a huge non-profit opportunity? Let’s take a look at just a few of the reasons.

The leak is largely taken care of; it’s not the issue it was yesterday. On its face, this doesn’t sound like a great reason to charge in with a non-profit and help get things cleaned up. But many of us know that when there’s a big problem with less media coverage, there’s a lot of opportunity to be the person who really makes a difference.

You don’t have to have the Today Show following you around with a camera to be successful; you just have to help people and do your job well.

If that’s not enough for you, consider the fact that less media attention means less competition for what you’re trying to do. In this kind of environment: high demand, not necessarily high supply, a non-profit company has a lot of room to grow, expand, create jobs, and let people know that it’s not always the government or large corporations who have to fix things.

There’s a lot of work to do. Any company you start – non-profit or otherwise – can only get things done if there’s really something to be done. In the Gulf Coast, you know there’s plenty that can be done. The threat of catastrophe is not over, especially as we enter hurricane season and the volatile weather presents an unpredictable future for many in the Gulf region.

If you’ve wanted to start a non-profit and help create a better world but didn’t know how, the oil spill in the Gulf represents a potential to create opportunity from crisis.

Government and corporations want to help. You’ll find that so many people at the upper levels of both governments and corporations feel so badly about the spill and their helplessness throughout the months of the leaks that they are happy to throw money at the problems. For a non-profit, this means you’ll be able to get the supplies and budgets you need in order to do work at a ground level that the government wouldn’t be able to handle by itself.

It’s a great way to “put your money where your mouth is” and really take charge of the situation, helping the lives of affected workers and fisherman all along the coast.

If you ever wanted to get experience in starting a non-profit but never knew how, finding unexpected crisis situations like the Gulf oil spill can help you get the experience you’ve been looking for – all while helping rectify a bad situation. You get a chance to do well…while doing good.

But how do you do it? Make sure you grab our free report if you want to gain your non-profit status with as little upfront investment as possible.

Win a Free Copy of my “90-Day No-Lawyer Non-Profit Launch Kit”!

Win a Free Copy of my “90-Day No-Lawyer Non-Profit Launch Kit”!

That’s right! I’m giving away a fully paid scholarship to the “90-Day No-Lawyer Non-Profit Launch Kit” (THREE, to be exact)…and all you have to do is click the big button below to answer a few questions about your organization.

Simply speak your mind, and the top three submissions, as judged by a three-person panel in my office, will win a FREE copy of my “90-Day No-Lawyer Non-Profit Launch Kit”!

The winners will be announced August 28th @ 1pm Eastern (10am Pacific), right here on this blog.
(NOTE: The contest closes August 28th @ 3am Eastern Midnight Pacific)

I look forward to hearing from each of you and your organizations.

Social Media as a Primary Mission Avenue

Social Media as a Primary Mission Avenue

by Christian Anderson, August 3

Google the term “social media for non profit” and you’ll see some interesting information about the potential for social media in various aspects of non-profit activity: relationship-building, fundraising, constituent contact, collaboration, et cetera.

What you’ll see less of is cases where non-profit organizations are actually using social media to achieve their mission. Of course, not every non-profit’s mission fits with such a primary use of using social media, but when it does, it’s powerful.

Think about the Iranian election a year ago. In this article, which chronicles the timeline of social media reporting – and totally reshaping – the election results and world participation in the brutally quelled uprising, social media flexed its muscle to a greater degree than could ever be exercised in an online fundraising pitch or awareness campaign.

Others are following suit, and the leverage of emerging technologies (such as geolocation) means that we have only scratched the surface of the power of social media as a primary means of achieving a non profit’s mission.

10 Tactics for Turning Information Into Action” from Tactical Tech showcases but one manifestation of this power. “10 Tactics” is a mini-movie (at about an hour), and covers some very effective tools for change. Order the DVD, and receive a set of cards that highlight points from the movie, while directing the activist-minded toward other tips and resources. The cards are also included on the DVD as PDFs.

Check out the trailer:

10 tactics for turning information into action (Trailer) from Tactical Technology Collective on Vimeo.

Sarah McLachlan Supports Small, Local Orgs Too!

Sarah McLachlan Supports Small, Local Orgs Too!

Despite Hollywood “Cause Bandwagon”, Some Celebs Will Help Startup Non-Profits

Denver, CO, July 13 – Hours before her Lilith Fair performance in Denver, Colorado, I had the wonderful opportunity to meet Sarah McLachlan. Of course, this presented a natural opportunity to talk about Sarah’s significant involvement with a number of non-profit organizations around the world.

Of course, the most interesting to me are those small, local orgs who have had the thrill – and the major exposure and benefit – of involvement with such a major celebrity. Sarah McLachlan puts her money where her mouth is, giving, supporting, and performing for a variety of causes ranging from yoga therapy to animal rescue.

When we think about celebrities endorsing non-profit organizations, we imagine the “big” ones. Susan G. Komen, Make a Wish Foundation, and any number of animal and literacy causes receive a lot of celebrity endorsements and even construct ad campaigns focused on using celebrities.

You don’t have to be a non-profit for animals or tsunami relief in order to make a name for yourself as a non-profit. Non-profit organizations have a major role in making the world a better place, and just because you think your cause might not exactly rally the nation is no reason to delay launching your non-profit.

So before you count yourself out, consider the fact that there are probably people out there who can appreciate your non-profit’s mission, as long as you have a foundation of solid morals.

Why shouldn’t you necessarily think small? Consider:

●    Start today, and start local. If you count out receiving the support of a minor celebrity or person of local notoriety, then there’s a good chance you’re setting yourself up for a self-fulfilling prophecy. Even if your think your local metropolitan mayor, for example, doesn’t care about art education, you might be surprised if it turns out to be a favorite cause of his. Once you pull a deal together, working your way up is a piece of cake.
●    Find areas you can resonate with your prospective celeb advocate. Even if you think your non-profit might have a small audience or base, you might be surprised about the type of people who would want to associate with you. Local celebrities might be willing to take up your cause, for example, if you work in a similar area to where they grew up. See what this post says about networking, and put it into action finding local and even national celebrities to press your cause.
●    Attract attention by doing good “different”. Worried about construction jobs due to bad public policy? Line the road to your state capitol with cheap, miniature yellow work helmets for a few hundred bucks. Then call the media. Even when you’re not sure about how much success your non-profit will have, you might find that your non-profit story becomes an interesting one simply because of the action you’ve taken and the creative events you might hold. Local news outlets might pick up on your stories when you least suspect it; word of mouth can be a more powerful marketing tool than you might imagine.

In other words, it’s critical to have “blind faith” in the idea that your non-profit can expand and do a lot of good by focusing on its mission and by being honest and genuine in all you do.

But that doesn’t mean you’re excused from putting in hard, creative work. It’s not always easy to stand out in the crowd. The better you are at identifying ways your non-profit can attract good attention, the more likely your non-profit will attract needed attention.

If you want to learn more about launching a successful non-profit and gaining legitimate non-profit status with the IRS be sure to check out our free report.

ANSWER THIS QUESTION: Who are the celebs that match your cause? Write the answer in the comment section below – thanks!

The Non-Profit is Dead…Long Live the Non-Profit!

The Non-Profit is Dead…Long Live the Non-Profit!

When it comes to the non-profit world there are two camps: alarmists, who truly believe that the sky is falling for nearly any and every charity organization; and perpetual optimists, who believe that unsustainable economic circumstances are no threat to non-profits. We’re flooded with contradictory messages about non-profits these days: that non-profits are become obsolete and extinct, or that non-profit organizations have never had more opportunity to make a difference in peoples’ lives.

So where’s the truth?

As if often the case, the truth lies somewhere in between. There is indeed a lot of opportunity out there for non-profits, but unless you have the right tools for a successful non-profit launch, you may find yourself among the crowd claiming that “non-profits” are dead – after yours goes belly-up

We don’t want you to become part of that crowd.

Even so, we can’t ignore the problems given the current economy, as well as some of the paradigm shifts in mission execution and technological change non-profit companies are facing today. Let’s dig a little deeper to illuminate what’s really going on in the world of non-profits.

Understanding the changes we’re seeing today

At Guidestar CEO Bob Ottenhoff’s blog, Bob illustrates the fact that many non-profits simply don’t have a long shelf life. But there’ something mysterious about some of these orgs that requires closer attention.

According to Chuck Lean, one of Ottenhoff’s vice presidents, the IRS does not report many non-profits as having gone out of business every year. This sounds like excellent news, of course, but when you consider that tens of thousands of non-profits simply “disappear” from the IRS files, it makes you wonder what’s really happening to all of these enterprises.

Ottenhoff describes them as “idle.” Since the IRS makes no actual, official announcement about the status of these non-profits, we can’t say exactly how many are dead – and how many are still around.

This may sound concerning, but one also has to consider that there are a high number of new non-profits that are also registered in the IRS every year. Some estimates put the number around 40,000 to 60,000 – which, by all evidence, significantly outstrips the number of “idle” non-profits dropping out.

As usual, the conclusion here has nothing to do with looking at the “macro” numbers as some kind of crystal ball, determinative of whether one’s non-profit venture will or won’t work for you because other people are finding success or failure. Instead, it simply shows that there’s a natural “business cycle” in non-profits, and that as in the for-profit world, success or failure are determined not by the economy, not by government budgets, but by other factors.

One of the core purposes of GetNonProfitStatus.com is to take the voodoo out of starting a non profit, and to arm “venture activists” and “social entrepreneurs” with the tactical skills, principles, and tools to succeed in the face of anything that comes at us in this uncertain economy.

What does this say about your non-profit venture?

With the well-known adage that “80% of startup companies go out of business within the first five years”, and considering that many of the fundamentals of operating charity organizations mirror those of for-profit companies (staffing, accounting, payroll, compliance, and income), it is only logical that the same fate befalls many non-profits. But if you’re an entrepreneur, this isn’t exactly a sticking point for you. After all, what do those statistics have to do with you? You’re going to start a successful company.

This is the attitude you should be reaching for. A non-profit launch can be difficult, but with the right tools in place and some lessons gained from other people with knowledge and wisdom, you can drastically cut away at the obstacles you’ll face.

Checking out our free report is a great way to get started learning about what it takes to get non-profit status, and once you have it, to thrive, not just survive!