Don’t start a charity
My advice to anyone who wants to start a charity? Don’t do it.
As a non-profit founder, people often ask me about starting a charity. Do you have any tips? How do you get started? I always give the same advice: “don’t.”
That might sound harsh, but allow me to explain.
Early on in our development work in rural Kenya, we revitalized a derelict medical clinic called Kishon. The organization that founded it had covered the costs of building the structure, but after they cut the ribbon, representatives snapped a photo and left. They neglected to hire doctors or partner with local governments to ensure that the clinic was actually operational. The result was a shiny new building, still with plastic coverings on the door handles — with zero medical care for the community. Still, the villagers were hopeful; they pooled money to pay a gardener to maintain the grounds. For two years he kept it up, fighting the unruly grass with a machete (lawnmowers aren’t easy to come by in rural Kenya). The community reasoned that if the grounds and the building looked nice, the organization would come back to resume the project. They never did.
A plan was laid with the best intentions, but without foresight, consultation with the community, or even short-term maintenance structures in place. It’s a common issue in the nonprofit world. Charity is always done with good intentions, but that doesn’t mean it’s always done well. The problem is that too many people assume they can run a charity, without considering all that it requires in terms of expertise, resources and personnel. Few people believe they could wake up tomorrow and start a highly specialized multi-million dollar company, but, they don’t apply that same thinking to starting a nonprofit.
This mentality could explain the large number of charities popping up. As of this year, there are more than 1.5 million registered nonprofits in the US, 170,000 in Canada, and 165,000 in the UK. And those numbers continue to grow.
Most are doing good work, but the sheer volume creates another set of issues for everyone. The already limited pool of donations is divided across the bloated charitable sector, meaning that each organization is competing for less dollars each year. It also duplicates efforts — with so many initiatives out there, redundancies in programming are bound to develop.
That said, when I say, “don’t start a charity,” to aspiring leaders, I don’t mean that they should give up their mission. On the contrary, my greatest hope is that more people will take on a cause and work to make the world a better place. By “charity” I’m talking about a legally registered organization, with a special tax status and reporting structure. That doesn’t mean you shouldn’t start your own social impact project.
If you’re looking to make the world a better place through your career, allow me to propose a couple alternatives to starting your own nonprofit.
Join an existing charity
With thousands of organizations already out there, it’s likely that there’s already one doing exactly the work you want to do. And the best part? They’re already set up with staff, programs and a network in the field. That means you get to skip the costs and tribulations of starting up a nonprofit, and move right to the good part — impacting lives.
Most people have inspiring reasons for wanting to start their own charity: honoring a loved one who passed away or sharing an innovation that will help more people. But you can easily bring those ideas and passion to an established charity that would love to strike up a partnership. Look at Warren Buffet. When he decided to start giving back, he was the second wealthiest person in the world. But — knowing that he wasn’t an expert in philanthropy — he decided to support the Bill and Melinda Gates Foundation rather than create his own organization.
I know this advice sounds hypocritical, coming from the co-founder of a charity. But keep in mind that 25 years ago when friends and I started WE in our parents’ basement, it was much harder to discover other organizations who were doing the work we what we wanted to do — fighting child labor. It wasn’t exactly something you could look up in the yellow pages (and it didn’t help that we were all 12 year olds). Today, we live in a world where one click will take you connect you to dozens of organizations working in the field you care about. It’s a great time in history to find the perfect partner for your charitable mission.
Add purpose to your company’s mission
If you work in the for-profit sector, or see a career for yourself there, bring your social mission with you. Whether your issue is animal welfare, cancer research, homelessness, or food security, there are plenty of ways to make change. Your company can support an existing charity that helps the cause by providing financial support, offering in-kind donations, or even organizing volunteer efforts by your employees.
Increasingly, corporate leaders are recognizing the value of taking on social causes. Not only does social action make the world a better place, but it brings teams together in a powerful way. If your company already has a foundation or a corporate social responsibility department, suggest that they consider taking action on the issue you care about. And if your company hasn’t taken on a charitable mission yet — which can often be true with small companies and startups — take the opportunity to lead your team’s first social impact project.
Start a social enterprise
Many of the people I meet who are considering starting their own charities share one particular quality — an entrepreneurial spirit. If that sounds like you, consider starting a social enterprise. A social enterprise is a company with a social mission, using business to make the world a better place. Since the company’s profits provide sustainable funding, social enterprises don’t have to invest time and resources bringing in donations and grants, enabling them to focus on giving back to their cause. And you’re not adding another outstretched hand to the already shrinking donor pool.
In this growing sector, I’ve seen all kinds of fantastic business models, from a scarf company that gives part of its profits to programs at children’s hospitals to a brewery that promotes environmental sustainability with zero-waste processes. There’s plenty of room for innovation in this space, and I think we’re just beginning to see what’s possible. At WE, we’ve recently launched a new program to support young social entrepreneurs, recognizing the potential for business to make tremendous impacts.
The great thing about the world we live in today is that there are so many ways to give back that go beyond the traditional charitable model. I am constantly inspired by the people — especially the youth — I meet who are committed to creating social change, and I can’t wait to see what they do in every sector to bring a little more good into the world.
