Longevity in organizational structure
Community story: A Climate to Thrive (ACTT) began as a grassroots initiative, led by a group of volunteers. In ACTT’s early days, many of the individuals who stepped into leadership positions had strong experience in starting organizations, businesses, or other enterprises. These were individuals with lots of energy, creative thinking, problem-solving skills, and strong entrepreneurial spirit. Initial processes around decision-making, supporting part-time employees, and more were established to fit with the organization’s small size, the need to be able to make decisions quickly, and alignment of processes with a volunteer-led initiative.
When ACTT was about three years old, it became clear that the existing processes were no longer serving the organization and certainly did not work as the organization transitioned from leadership by a group of volunteers to leadership by a director, working closely with a board of directors. As ACTT revisited procedures and structure, there was a distinct moment in which some of the early leaders recognized that their skill sets were not what was needed in establishing the structures and organizational procedures for longevity. This was a tremendous gift to the organization’s work on longevity, as it allowed new leaders to step forward from within the board of directors who were uniquely suited to support the establishment of organization structure and procedures that would best serve longevity.
Many community-driven climate groups start as informal networks of passionate people working together toward a shared goal. As the work grows, groups often navigate shifts in structure to ensure longevity. At the very least, it becomes necessary to establish enough structure to effectively hold decision-making, provide a solid foundation under project-focused work, and sustain engagement and partnerships over time.
The energy and skills involved in starting a new initiative are slightly different in nature than the energy and skills involved in establishing the structure and processes needed to sustain a newer initiative. Different members of your group might shine at these different moments within the growth process. For example, in the early days of beginning your organization, members with entrepreneurial energy and skills will have a lot to contribute. When you are shifting from a grassroots start-up to a long-term initiative, members with organizational skills and those drawn to establishing effective processes will have a lot to offer. It is important to recognize and even celebrate this shift in needed skills to effectively sustain beyond the “start-up” phase.
Pause and Reflect
Do you need nonprofit status to do the work?
What Are the Benefits of Becoming a Nonprofit?
If your group is growing and needs a more formal structure, becoming a nonprofit can provide:
Funding opportunities: Many grants and donations require nonprofit status.
Credibility: A nonprofit can build trust with funders, local governments, and community members.
Sustainability: A structured organization may help your work continue beyond individual volunteers.
Considering whether or not to become a nonprofit
Often, as groups navigate the transition from informal grassroots organizing to sustaining structures, the following question arises: Should we formalize as a nonprofit? The answer depends on the structure that best supports your mission, capacity, and long-term goals.
Key Considerations:
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A nonprofit structure provides certain benefits, such as eligibility for grants and tax-deductible donations, but also comes with legal, financial, and administrative responsibilities. Before deciding, familiarize yourself with the requirements for nonprofit establishment and annual compliance and ask:
Do you have the capacity to meet these requirements? If not, what steps would you need to take to establish that capacity?
Can you operate effectively as an informal group or under a fiscal sponsor?
Are there existing organizations that could house your initiative?
Will becoming a nonprofit unlock opportunities that are essential to your work?
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Consider these questions to guide your group’s thinking about organizational structure and longevity:
Does our current structure (formal or informal) support the kind of work we want to do now and in the future?
What about our current structure is working well? What feels limiting or unsustainable?
Are we taking the time to ensure that those who need to are fully involved in decision-making processes and kept up-to-date on important organizational decisions and developments? What structures or processes can help make this communication effective and obtainable?
What kinds of structures or processes could make our day-to-day work easier?
Are we set up to share responsibilities and avoid burnout over time?
Rather than rushing to formalize, this process is about finding the right kind of structure for this stage of your group’s journey. As your work grows, evolving your structure can help your group stay organized, distribute leadership, reduce burnout, and stay responsive to new opportunities. Reflecting on what’s working and what needs to shift can support your group in staying rooted, connected, and ready for the long haul.
What Are the Challenges of Becoming a Nonprofit?
While there are benefits, running a nonprofit also requires:
Official bylaws and state filing: Nonprofits are required to establish official bylaws and to file with the state to receive nonprofit status. (Resources below)
Administrative work: Financial reporting, governance, and legal compliance take time and resources.
A board of directors: Decision-making shifts from informal consensus to a structured governance model.
Fundraising pressure: Once you have a budget, sustaining funding becomes an ongoing challenge.
Not every group needs to formalize as a nonprofit to do meaningful, long-term work. There are alternative structures that can support your goals while allowing for flexibility and sustainability over time. Choosing the right structure can help your group manage funding, clarify roles, and stay organized as you grow.
Fiscal Sponsorship: Partner with an existing nonprofit that can handle administrative work while you focus on your projects. Note: most fiscal sponsors charge a small percentage off all giving to help cover the cost associated with processing financial information for your group. Your group will likely still need to establish its own bank account.
Coalition Model: Stay informal but collaborate with other groups and nonprofits to share resources and reduce administrative burden. Coalitions can help your work feel less isolating and build long-term capacity through shared infrastructure and relationships.
Project-Based Organizing: Some initiatives may not need a permanent structure, and can remain a network of volunteers working around a specific issue, season, or opportunity.
Alternatives to Becoming a Nonprofit
Resources:
