If so many benefits come from starting a 501c3 nonprofit, you may wonder why everyone doesn’t do it? Well, it’s because of the many myths and misconceptions there are about starting nonprofits. 

Here are some of the most common reasons or “myths” that keep people away from starting their own nonprofit.

9 Common misconceptions about starting nonprofits

It is too expensive to start. 

Many people believe you need enough startup money to lease an office downtown, pay five people full-time salaries as staff and have a six-figure first-year operating budget to start a nonprofit. 

However, this isn’t necessarily the case. 

You can have a six-figure startup budget – or you can simply have the funds to pay your initial costs and then work toward gradually increasing the budget.

You have to be independently wealthy.

Although you can start a private foundation and fund it yourself from your wealth, public charities (which are also 501c3s) do not have to do this. 

Instead, donations from the general public, and not your own pockets, funds a public charity. This means you can get money from donations, grants, corporate sponsorships, etc., to run your nonprofit. 

So it means you don’t have to be wealthy to make a difference by starting a nonprofit.

You need a nonprofit degree. 

Thanks to technology, managing and running a nonprofit have never been easier. You do not need a college degree in nonprofit management to start and run your own successfully.

There are a host of apps, websites, and online tools that are available to simplify the process of project management, donor relationship management, payroll, record keeping, bookkeeping, tracking donations, and more. 

You need lots of free time. 

Many feel that they already have tight schedules with demanding jobs, family commitments, caring for pets, church and community involvement, in addition to finding time to work out, vacation, travel, enjoy hobbies, spend time with friends, etc. 

They may feel that spending valuable time working on their nonprofit means they may have less time to advance their career or professional goals. 

The good news is that you can do all of those things while still having a successful nonprofit. 

Future posts discuss specific strategies for managing and leveraging your time by delegating to volunteers and staff to achieve your nonprofit goals.

You need experience running a nonprofit.

Some feel you need actual management experience running a nonprofit to start one. 

This, however, is not true. 

Yes, you need to be willing to educate yourself and/or hire professionals that can guide and supplement your inexperience. However, you do not have to have had a previous career in the nonprofit industry to be successful.

You need to have a nonprofit plan already.

False. You don’t have to have anything except your idea to get started. Build a good team around you, including someone experienced with nonprofit startups, such as a nonprofit attorney. You can share your vision and allow them to handle the paperwork and execute your plans. 

Once again, future blog posts discuss the need and benefits of hiring a nonprofit attorney and building a team. 

You need to live off of your savings since you can’t get paid. 

Nonprofits can legally pay competitive salaries to offer benefits and retirement plans to founders that choose to work for the nonprofit. You can also hire staff and employees to help fulfill your mission.

We’ll show you how to pay yourself and others legally in later blog posts. 

You can’t charge for your services.

Some people want to offer a professional service like music lessons, computer coding lessons, etc., through their nonprofit but are discouraged, thinking they would not be able to charge for them. 

This is the case because they don’t know that nonprofits can generate a profit and you can also charge for services as long as they follow the rules.

Another of the Misconceptions about starting nonprofits is that there are already too many nonprofits.

Some feel that all of the “good” ideas are already taken. 

They feel that other people have already created everything and that their nonprofit idea exists. They fear that there is simply too much competition among the millions of nonprofits already in existence and that donors will feel even more frustrated with one more choice if they start their own nonprofit.

This is another huge myth. 

The truth is that there are a lot of nonprofits in existence, and there may be someone else doing something similar to what you want to do. 

However, none of those things in and of themselves should discourage you. 

Why? 

For the simple reason that if the existing nonprofits were doing such a great job – you wouldn’t see the need you see!

For example, there are a lot of restaurants around you. 

Have you ever wondered why there are so many restaurants?

Shouldn’t potential Italian restaurateurs feel that they should not start their restaurant as other restaurants already serve Italian food? 

No, they should not feel this way. 

It’s because they know that even though they exist – they don’t and cannot reach everyone. The existing restaurants may reach people that want fast and cheap Italian food, however, they may not reach that segment of people who want an elegant sit-down experience and are willing to pay a premium for that.

None of these myths and misconceptions about starting nonprofits should make you feel bad

Overall, many “myths” can stop you only if you let them. 

Many people have overcome these same myths and have started nonprofits that have impacted others. You can do the same thing!

After addressing the “myths” that hold some people back, wait for the next post to learn more about what it takes to start a 501c3 nonprofit!