What I Wish I Knew Before Starting a Nonprofit
I launched a nonprofit in 2017 in hopes that a 501(c)(3) would open up grant opportunities, allow me to formalize community projects, and give donors confidence. Ironically, when I first established Yo Miami as a company, my CPA at the time suggested I make it a nonprofit since most of what I was doing qualified for the classification. I was hesitant to go down that road though, having had zero firsthand experience with how they operated, so I stuck with what I knew and made it a for-profit corporation.
After I had a handful of years under my belt, and more engagement with the nonprofit world, I saw the benefit in being formally classified as such. Some of the benefits undoubtedly turned out to be true. But so did a lot of things I hadn’t considered.
For example, the sheer amount of paperwork. Even when our activity slowed to almost nothing, the government deadlines didn’t. Annual reports, tax filings, board minutes, all the structural obligations remained, even when the creative work paused.
Then there’s governance. Running a nonprofit means more than just “doing good work.” It means managing a board of directors, recruiting volunteers, ensuring legal compliance, and proving public benefit. I also learned that having a nonprofit doesn’t magically open funding doors. Grants are competitive, relationships matter, and even small organizations need development strategies if they want to attract substantial funding sources.
That’s not to say I regret starting mine. The nonprofit made certain projects possible that wouldn’t have happened otherwise. But if I could go back, I’d have built a stronger support network from day one. I would have asked more questions about sustainability before filing paperwork. And I’d have respected the reality that the structure itself comes with invisible labor.
If you’re thinking about starting a nonprofit, I’d encourage you to pause and really examine why. There may be other ways to accomplish your mission without the administrative overhead. If you move forward, go in with open eyes, and ideally, a few helping hands.