Can you make money with a Nonprofit? Answering Your Questions

[@AmberMelanieSmith]

Newsletter for resources for changemakers and nonprofit leaders! tinyurl.com/nonprofitsandchangemakers

[@dutchpearson2022]

Thank you so much

[@AmberMelanieSmith]

You bet!

[@stevenhipkins5713]

A wonderful and beautiful hearted person.

[@DOCS-yw8bf]

Your videos are amazing, I started looking at nonprofit info because I saw a video on Melinda Gates & wow you make it incredibly digestible and make it an attainable goal. Thank you, Amber!!

[@AmberMelanieSmith]

Yay!! That makes my heart happy!

[@Homemade-AC]

Great information! You are like an Olympic Athlete in your field. You've always made it look so easy and natural all the years I've followed you. All 10s on the judges score cards! Thanks sincerely for all you do, James & Kitties

[@AmberMelanieSmith]

So kind! Thanks for watching James (& kitties!)!

[@michelehart8535]

Love the information you share! Can you explain a non-profit that is director and member based? Pro and cons of both. Thanks

[@AmberMelanieSmith]

Do you mean a membership structured org where members pay dues / vote? (beyond having a Board)

[@michelehart8535]

I guess. When filling out the form for 501c. There's a place that ask director. Or member. What is the pros and cons of the choice of a director and member 501 non profit? Thanks

[@HelloooThere]

Is it almost an insult for the Founder to be hired by the Board of Directors as an independent contractor staff (vs. employee)?

[@AmberMelanieSmith]

I am not sure about insult (that's personal preference I think) but I would think there could be some legal human resources issues with that classification. I would consult an HR expert..

[@john-philipcamp715]

Thank you so much Amber! I was specifically looking for the answer to #3. I am in the process of founding a non-profit and hoping to make it my full-time career as well. It feels really weird to right off the bat found an organization, recruit board members, then immediately relinquish control of the organization to that board so that I can feed my family. How do most founders go about this? Do they sit on the board and volunteer their time until the organization is shaped and stable then step of the board so that they can be hired by the board of directors to fulfill the role of Executive Director?

[@AmberMelanieSmith]

I hear you. Nonprofits are an interesting legal structure, because the government doesn't want to provide the tax exemption benefit without knowing it is community-owned. Even the founder is not considered the owner (which is why I recommend if you need to retain full control, a private business may be a better structure - you can still do good in a business!). For me personally, I worked closely with my Board and was clear my goal was to work for the org full time. They agreed and voted me in.

[@bram_adams]

Great video Amber, thank you! Question: I’m considering starting a nonprofit software and educational company where the mission would be to: 1) teach people about personal library science, a new discipline focused on using technology and commonplace books to capture intellectual legacy and enhance individual autonomy. ideally will be teaching classes at universities 2. an open source managed software implementation of the above mission, with a free tier for users (and perhaps free subscription supported by donations) for those who can’t afford it, as well as a paid tier that manages data for users (think dropbox) I have a few concerns as i start to think about this as a non profit: 1) my goals are mission focused (personal library science and the software) but software development is really expensive! do you think it’s worth it for software companies to go the non profit route? 2) right now as a founder i operate solo. how would i go about getting a board for this kind of mission? 3) i saw your video on social enterprise, is there a hybrid strategy or for profit model that would work better for my particular case? 4) i live in an area with a high CoL. how would i pay myself and any future employees a fair salary? Thanks for your input!

[@AmberMelanieSmith]

Sounds like a social enterprise model in my opinion - but that can still be structured as a nonprofit or company. Depends on what level of autonomy and control you need to have. If you want to be able to collect tax deductible public donations and you're comfortable with the board having power and not owning the organization (the public owns a nonprofit, not the founder), then nonprofit. If you need autonomy and want to own the organization, a for-profit company might be better.

[@gigii6937]

This stuff you mentioned about board of directors hiring you, I think it's limited to the US. I'm Nigerian and I haven't heard of nonprofits here have a board of directors and stuff like that... Most nonprofit founders I have seen from here run operations like the CEO and stuff. What do you think?

[@AmberMelanieSmith]

Maybe! You can still have the title of CEO of a nonprofit in the USA (it's nearly synonymous with Executive Director), but it's true I'm not well versed in the legal structures of nonprofits in Nigeria.