Myths about Nonprofit and Private Practice
Not all private practices are the same. Sometimes a Bootcamper comes along and it turns out that their vision and the way they want to serve are better aligned with a nonprofit business model.
Jasmine Bright, founder of Aspire Business Therapy (formerly Bright Management and Consulting Services), joined us to discuss nonprofit development and management. She gave her professional insight regarding when you should start a non-profit, the basic steps to getting started, the myths about going into non-profit work and the key elements that will make or break your non-profit.
Listen to the podcast here, and keep reading to check out some of the most common myths about nonprofit debunked!
Myth: Building a nonprofit requires different processes, business models, and skills than building a private practice.
Truth: Non- and for-profit businesses have the same operations, but different governance and filing. The entrepreneurial skills and business planning you have already developed do translate to the needs of a nonprofit owner.
Myth: Nonprofit work means no money!
Truth: Many nonprofit businesses bring in enough to properly pay their employees, fund their programs, and continue to grow.
Myth: Nonprofit organizations do not pay well, or fail to pay their employees at all.
Truth: Jasmine worked in nonprofit for 8 years before she saw anything like this happen! Nonprofit businesses can, and often are, run by capable and dependable people who care about their workers. You, too, can develop an effective and trustworthy nonprofit organization.
Myth: A nonprofit is only an option if you are developing a program.
Truth: Building a nonprofit is a great way to develop charitable programs, but you can also get funding to provide your existing services at a discounted rate. Rather than providing a discount that leaves you needing to fill the gap in income elsewhere, a nonprofit allows the discount to be covered by external funding so that you can prevent burnout.
If you are looking to give back to your community and increase accessibility to mental health services in any way, nonprofit can help you do this.
Myth: You will need to rely heavily on grants to fund your nonprofit.
Truth: Grants only make up 10% of nonprofit funding! Organizations get the majority of their funding from legacy gifts, individual donors, and major gifts. Additional funding comes from tax revenue, government funding, fundraising, services provided, and memberships.
Myth: You need a Board of Directors filled with millionaires.
Truth: A good Board of Directors is an asset to your business. While it is not a good idea to bring on your friends and family just because you trust them, you do not need to find a bunch of millionaires in order to succeed. Fill your Board with people who are well versed in the industry, who have connections to the kinds of people who can provide financially, or otherwise, to your organization, and who will cultivate impactful relationships. When it comes down to it, the progress of your nonprofit business relies on your Board of Directors, so you want people who are committed to your mission!
Jasmine Bright is a wife, mother and self-coined momtreprenuer. She has 11 years of experience in nonprofit and small business management, holds a MS In nonprofit management and leadership, and is pursuing her Doctoral degree in Strategic Leadership.
