Four Common Reasons Great Causes Never Get Off the Ground (Part 2)

In my last post, I shared the story of Prevent Child Abuse Pennsylvania, an organization that had an inspiring mission and every reason to succeed. Yet it never gained the momentum needed to become sustainable.

The dream wasn't the problem. The mission wasn't the problem.

In Unlikely Good, I describe three stages every cause moves through: Dream, Discern, and Deliver. The dream phase gives birth to the vision. The discern phase tests whether the idea is sustainable. The deliver phase is where the venture is launched.

Too many worthwhile causes make it to the runway but can’t get lift.

Here are four common reasons I've seen organizations struggle to get off the ground.

The Wrong Structure

There are a number of ways a nonprofit mission can organize or structure its cause. I talk about this in more depth in Unlikely Good. Suffice it to say, a cause can start its own 501(c)(3) structure or choose to use another nonprofit as a fiscal sponsor.

Many people assume it is as easy to operate an independent 501(c)(3) as it is to get one approved. I can assure you it is not. They require good leadership, effective boards, annual audits, and sustainable fundraising operations.

The alternatives are to use another nonprofit as a fiscal sponsor or to launch the cause as a program of an umbrella organization. These are good alternatives but require clear expectations, accountability, and communication.

Choosing the wrong organizational structure can create an administrative burden too heavy or complicated for a fledgling cause.

Looking back at Prevent Child Abuse Pennsylvania, somewhere along the way, responsibility for leading and maintaining the initiative was unclear from my vantage point.

Because the initiative was launched under the umbrella of another organization, an important question eventually emerged: Who owned the program? The umbrella organization, or did they expect the board to move the organization toward independence and sustainability?

An umbrella organization that hosts a new program can exert too much bureaucracy, limiting the innovation and growth of a new cause.

Successful causes require structural clarity and flexibility to grow without too many constraints.

The Wrong Board

Don't make the mistake of thinking that if you recruit an all-star board, the cause will inevitably succeed.

I have witnessed this mistake on two occasions. Both boards were loaded with doctors and experts, but neither organization was able to get off the ground successfully.

It is easy to make the mistake that advanced degrees are the only kind of expertise needed to launch a new venture.

What you will likely need in an early launch are more generalized skills, such as creativity, networking, business acumen, and legal expertise. Find people who have successfully launched other ventures. There is a set of analogous lessons that apply across industries that will benefit you.

Your cause will need the right board members who have a passion for the mission and can provide the boost you need.

The Wrong Leader

A critical mistake many organizations make is choosing the wrong leader. Every organization has to determine what type of leader is needed for the season. In the launch of a new venture, it usually helps to have an entrepreneurially gifted leader for this season. If an organization is trying to relaunch after an initial failure, they will need different gifts for that season. Many organizations select, hire, or appoint a leader who does not match the needs of the season.

It may not be safe to assume that the founder of the cause, the one who initiated the idea, is the right person to lead the organization.

The board will need to determine what season the organization finds itself in and then carefully select the appropriately skilled leader. Hire the wrong leader, and your cause will likely stall on the runway.

The Wrong Funding

Many nonprofits exhibit short-term thinking when it comes to their revenue model. They believe that if they can secure the initial round of funding to launch a project or construct a facility, then they will figure out sustainability later.

Serious funders will want to know how you plan to sustain the work in three to five years. They recognize that seed funding is readily available, but operational funding is more challenging to obtain.

If you haven't established a development operation, your fundraising effort will start to sound like begging. No one wants to support a nonprofit that consistently loses money. Who wants to throw money at the Titanic while it is sinking?

To sustain flight, your great cause will need a sustainable funding model. Don’t launch without clarity and a reasonable plan for success.

Getting Off the Ground

Avoiding these four pitfalls won't guarantee success, but ignoring them can prevent even the strongest mission from ever getting off the ground.

Our communities don’t need fewer community-changing ideas. They need more causes that can avoid the common pitfalls and get off the ground.