Don’t let your passion and purpose, move you too quickly. Consider your preparedness to run a corporation.
If there is one thing I’d like to impress upon those running nonprofits is that they are corporations. We tend to refer to them as an organization, which is a hyponym of corporation.
Often individuals will, because of their love or passion to see a wrong righted or a need fulfilled, seek to form a nonprofit organization without considering their preparedness to run a corporation.
The virtue of being organized is very different than the establishment of a corporation under authority of law, having a continuous existence independent of members, and powers and liabilities distinct from its members.
When nonprofits are birthed from the heart of an individual, it’s easy to jump in and rally others without considering what the corporation needs to function beyond your passion. Nonprofits often lag behind for-profit corporations with respect to profit-making, long-term financial planning and succession planning.
In this American Express OPEN Forum feature, you can learn more about our Agency, how we can help build capacity, and how your nonprofit can succeed