Establishing a nonprofit has the same challenges as starting a traditional business venture. You need a funding source, a vision, a mission, a target market and an experienced management team.
I have been involved in two nonprofit startup theater groups for artists with disabilities in Milwaukee and Scottsdale, Arizona.
The Milwaukee group, The Pink Umbrella Theater Company, started with one person who had 30 years of experience. The Scottsdale group, Empowered Theater Arts (ETA), had an experienced board of community volunteers and a seasoned creative director.
These two examples provide us with an opportunity to discuss the importance of assembling an experienced team when establishing a nonprofit.
Empowered Theater Arts
Let’s look at ETA, the Scottsdale startup, and how it hit the ground running and was able to produce its first production within seven months. This example is unique, because the founding board was composed of four very experienced community volunteers, who had previous experience in the Scottsdale disability theater community. The creative director, LaRiche Lamar, had been with an established community theater. She left that theater and an experienced group of past board members and major donors of that theater asked her to join them in the new venture.
The first planning meeting was held at a volunteer’s back yard and resulted in a draft mission statement, a vision and a very fundamental strategic plan.
Funding was the first priority and two board members took on the challenge. Within a few months, the board members had a basic fundraising plan. Initially, a number of challenge grants were developed and matched. The result, a year’s worth of funding was raised by the sixth month of operation.
Then came the 501(c)(3) filing so the organization would gain the necessary nonprofit status. In the interim, a fiscal sponsorship was established with another local theater company to process donations for ETA. The organization was up and running, actors were being attracted and workshops established. The first production was scheduled for early November and that target date was met.
The 501(c)(3) status was granted in February 2024. A formal strategic plan was developed and is in the process of being implemented. A third more lavish production is planned for May 2024, a year after the inception of the theater group.
Pink Umbrella Theater Company
In comparison, Pink Umbrella Theater Company, which welcomes actors and artists who have an emotional, intellectual or physical disability, was established in 2018 by Katie Cummings. Katie is an experienced theater professional in Milwaukee. At that time, the administrative duties were manageable by one person and an advisory board. The company continues to grow and as they set out for their next five-year strategic plan, staffing is a top priority.
Disability theater was a brand-new concept to the Milwaukee community in 2018 and there was concern about audience and participation. Katie met with and listened to disabled community leaders to determine the best path forward. As a result, the company’s leadership teams are now comprised of people who identify with a disability. Each professional actor and artist is paid for their time and the shows are written with the voices of the disabled community at the table.
The Pink Umbrella has sold out every performance for the past five years. With regard to fundraising, the community has responded, and a number of challenge grants were developed.
Currently, the company is seeking new board members to move from an advisory board to a working board to ensure the strategic plans will come to fruition. The company is embarking on their next five-year strategic plan and has a solid roadmap for the future.
Both theater companies are successful but look different to their respective communities. They are both in a rapid growth mode. What phase is your nonprofit in now? If you are considering starting a nonprofit (or already are) these are some of the standards to use to determine its effectiveness.
First, there has to be a desire, and a need, for the service offered by the nonprofit.
Second, the assembly of an experienced board shortens the timeline for growth and the needed fundraising.
Third, there needs to be a strong entrepreneurial spirit on the part of the founding board members.
Fourth, both for-profit and nonprofit organizations follow a growth cycle. Rapid growth is followed by slow growth, then by maturity and then possibly decline. This is not always linear; some nonprofits spend years in the startup mode before they move onto the growth cycle. That is why from time to time nonprofits may need to reinvent/refocus themselves.
