What is a Nonprofit?

When I first called home and told my mother I found a new job at a nonprofit organization, she asked, “if they’re nonprofit, how are they going to pay you?” To me, this seemed like a silly question; of course my job will pay me. Then I realized that I’ve been doing volunteer and nonprofit work for several years, and my mother hasn’t, so how would she know? She wasn’t one of those stay-at-home-moms of the 80s and early 90s who took care of the kids and volunteered at the board of her favorite animal shelter, and also found time to coach the kids’ softball league (probably because none of us were in softball. No, that’s not right. Probably because she had five kids, and that’s kind of a lot to take care of in addition to having any sort of private life of her own). So my mother didn’t know how nonprofits work.

If my mother doesn’t know about nonprofits, it stands to reason that other people don’t either. So let’s get started.

How do you define a nonprofit? InvestorWords.com says a nonprofit is “An incorporated organization which exists for educational or charitable reasons, and from which its shareholders or trustees do not benefit financially” (emphasis mine). The bolded part is key here. That’s why they’re nonprofits. Makes sense, right?

Of course, there’s a lot more to a nonprofit organization than the fact that it doesn’t pay to be a trustee on the board of your local Red Cross. For example, there are nonprofits for just about everything. Breastfeeding? Got you covered. Preserving the St. Paul library? Sure. Interested in Connecticut’s history? Okay, we’ve got that too. If you’ve ever thought there should be a league or a society for one or your interests or something that affects your life, there probably is one already, and you’ve just never heard of it.

Great. So what happens when you decide to look into the Connecticut Historical Society? Okay, they have some pretty neat pictures of historical women’s underwear, and maybe they helped your kid’s research paper on the 1920s. Do you look at their webpage and move on? Here’s where I throw my two cents in: please don’t.

I’m serious. Take a closer look at the organization. If it’s something you’re really interested in, check out their financial information to see how well they’re run (there are even organizations out there devoted to helping you look up other nonprofits!).  If you like what you see, call them up and talk to someone at the organization.

A few myths:

1. Nonprofits are money-grubbers.  This is called a myth for a reason.  While nonprofits like your money, they’re not trying to swindle you out of anything — they honestly need your money to continue with their programs.  Yes, it’s uncomfortable to be asked for money; we don’t like talking about our financial situations, but think of all the trouble they’re going through to ask you for money by sending out a mailing or putting on an event.  They wouldn’t ask if they didn’t need money to continue what they’re doing.  And if they’re asking you, you must’ve given them some reason to think you’re going to give them some money — did you sign up for their mailing list?  Did you buy something from them?  Did you attend one of their events?  Nonprofits need your money to continue their programs, and also to set up endowments, which allow them to earn interest on money so they don’t have to ask for so much in the future.  Yes, they always need money.  Yes, it’s uncomfortable to be asked.  If you can’t give or don’t want to give, try volunteering.  If the nonprofit is seriously mistaken in asking you, tell them you want to be off their mailing list.  Easy as pie.
2. Nonprofits don’t need you.  Ha!  What a bunch of crock.  Nonprofits always need you; they need your money, your time as a volunteer, or even just your word of mouth to tell other people how great they are.  I have never known a nonprofit to turn someone away who wanted to volunteer or donate.  They’ll take anything you can give them (that being said, try to keep your word.  If you say you’ll be there at 9:00, don’t show up at 10:00.  Likewise, if you say you’re going to bring your digital camera, don’t leave it at home.  They’re too nice to tell you how they were depending on you and that it really put them into a tight spot when you didn’t keep your word.)
3. Nonprofit people are phony.  Well… this myth could cause some problems.  It’s not true per se.  When nonprofit people come off as phony, chances are its because they’re so used to having to kiss bum to get anywhere that they do it automatically.  In my personal experience, the people with the most money need the most hand-holding.  They’re the ones nonprofits go after because once they start giving, they’ll give over and over again, as long as someone is telling them how awesome they are.  So cut the nonprofits a little slack, okay?  They’re just doing their jobs.

And finally, in defense of nonprofits: it’s a trying job.  The people in nonprofits can’t afford to get mad or burn bridges, so they won’t tell you when you’ve done something that’s crappy.  They have to suck up to people who are unpleasant.  They have to file an incredible amount of taxes every year, which is great because then we know where the money goes, but not great because they have to spend so much money getting all their ducks in a row, and take time out of their programs to do it.  Nonprofit people are underpaid, but chances are if they work there, they believe in their cause.

More about nonprofits:

• How to Befriend a Nonprofit
• Being a Nonprofit’s Friend, Part 2
• Being a Nonprofit’s Friend, Part 3