Founding: What I Wish I Knew
It’s been about four months since I decided I would found the organization now known as Sapiens First. It’s still early, but I like to look back and reflect (probably, I will write a better version of this piece a few months down the road).
The best advice I got early on was to have a ridiculous, overwhelming amount of confidence. Also, it’s essential to have an idea that you completely and utterly believe in. Founding a non-profit is not for the faint of heart.
If you have those things, then I really encourage you to do it. I’ve learned more here than in any other phase of my life. At the very least, you can spend 6 months prototyping and seeing if there’s appetite for your idea, then go back to a regular job.
Here’s some mostly practical advice about how to get started:
- Incorporate. Non-profits take several months to incorporate! As soon as you have a rough idea of what you want to do, get two friends to be on the board with you and submit for the 501(c)(3). Heck, even if you’re not sure but think you might want to found something in the future, it is worth it to incorporate. You save on fiscal sponsors, which take 5-10% of your revenue.
- Idea. A great idea takes time to think about. I’d say the Ikigai framework applies: you want to do something that the world needs, that you enjoy, that you’re good at, and that is financially sustainable. It’s worth thinking about the business model early, since that could inform your strategy, even if you get by with savings, grants, or gifts from friends and family to start. For a non-profit, a business model just means some way of generating consistent revenue, eg. through a membership program, fundraisers, or by selling a product.
- Name. The name is exceedingly hard to choose. Choose a placeholder name at first so that you can incorporate and describe the project to people. Before you start looking at domain names, think about the purpose of the name: appeal to politicians, the general public, lawyers, Republicans, Democrats? That will determine what criteria you use. No name will be perfect in everyone’s eyes. Because Sapiens First is a grassroots organization, the core requirements were: it’s easy enough to spell; white space in search results; short enough that it can be used for chapters (eg. Sapiens First Berkeley); roughly related to the idea of AI & democracy.
- Funding. Getting funding is a lot like getting a job. Except you have to continue doing it indefinitely to keep your organization afloat. Grant-making and donations are not a fair & efficient marketplace (compared to, say, venture capital, where the funders have incentive to think rationally and avoid group-think). Alas. So that means that like many other things, funding is generally about relationships. Donors have to know, like, and trust you. You can get good at fundraising with persistence. Reaching out to people to catch up, sending cold emails to people who might be relevant, going to events in your area. Tailor the framing of your project depending on what you know about the person. Listen much more than you talk. When you’re deciding who to spend your efforts on, prioritize based on ability (ie. wealth), affinity (to your cause or you), access (people in your network, locale, or one degree away).
- Strategy. I’ve written about good strategy before, so I won’t rehash that. I do think it’s important to have a strong vision for your organization. Could you see your impact scaling 100x in five years, and what does that look like?
- Knowledge. Use AI a lot! It is so easy to learn these days. You can ask any LLM the exact questions you want answered and get great advice.
- Networking. Because your contacts may be helpful (eg. for funding, tips, encouragement), it’s good to start talking to people early. I recommend talking to low-stakes people who won’t be evaluating you, getting their goodwill, then moving on. However, if you’re extremely early-stage, reaching out to people to get their advice early can be useful. The 2-Hour Job Search and my post on job searching are relevant here.
- Go full-time. If you can go full-time, I recommend it. It helps to have a clear head, and having a good idea takes time. A lot of time! Focus is your superpower.
- Prioritize. Don’t put the cart before the horse. I do this a lot!
- Talk to users. If you are unsure how your idea will be received, talk to the people you’ll be working with. Talking to “users” in the non-profit sense means more: “do people care about this issue? What’s the right way to frame it?” Talking to users allows you to make a more informed pitch to funders. But also, when you talk to funders, you should find out what they want to hear / understand framing that works for them.
Some good resources:
- Start something that matters by the founder of Tom’s shoes, Blake Mycoskie. Encouraging, amusing, and down-to-earth. Good read for those unsure about pulling the trigger.
- Y-Combinator’s YouTube channel. Great content that teaches you to hone in on the core of your project, and also the importance of talking to users.
- Paul Graham’s excellent blog. Lots of people get inspired to found from this, and rightly so!
- Sam Altman’s excellent blog. Importance of self-belief, focus, and having great friends.
- Business entrepreneurship by Jim Collins. Collins’ writing is all extraordinary.
- Fundraising for Social Change. A little formal but useful! Don’t bother doing everything in this.
- Non-profit management plan. A good article I did not use but could be useful
- Non-profit operations playbook.
- How to start a nonprofit, an operational playbook. Lots of great resources linked here.
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