Comments on: Avoiding 501(c)(3) Founder’s Syndrome http://www.501c3.org/blog/avoiding-501c3-founders-syndrome/ Wed, 08 Feb 2012 00:41:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Greg McRay, EA http://www.501c3.org/blog/avoiding-501c3-founders-syndrome/#comment-1120 Greg McRay, EA Wed, 01 Dec 2010 09:43:21 +0000 http://www.501c3.org/blog/?p=1454#comment-1120 <em>Is it not ok if someone really doesn’t like sharing responsibility yet still wants to start a 501c3?</em> No, it isn't OK because applicable federal and (most) state law prohibits dictatorial control over a 501c3 in order to protect the donating public and to ensure a public/charitable purpose is being pursued. If Sam wants to be king, cook and chief bottle washer, that's fine. He should stick to doing his idea as a unincorporated project or simply be a for-profit enterprise. Tax-exempt status is neither appropriate nor allowed in his case. BTW...Sam is fictional, though the circumstances of his story are common. Is it not ok if someone really doesn’t like sharing responsibility yet still wants to start a 501c3?

No, it isn't OK because applicable federal and (most) state law prohibits dictatorial control over a 501c3 in order to protect the donating public and to ensure a public/charitable purpose is being pursued. If Sam wants to be king, cook and chief bottle washer, that's fine. He should stick to doing his idea as a unincorporated project or simply be a for-profit enterprise. Tax-exempt status is neither appropriate nor allowed in his case.

BTW…Sam is fictional, though the circumstances of his story are common.

]]> By: Andrew http://www.501c3.org/blog/avoiding-501c3-founders-syndrome/#comment-1119 Andrew Wed, 01 Dec 2010 00:23:36 +0000 http://www.501c3.org/blog/?p=1454#comment-1119 This article assumes that the founder syndrome is a problem because the non profit organization fails. Why not just say to the failing non profit, "thanks for the memories" and be on our way. Yes, we care about the kids. If only things were done differently or if someone would just do something to help, the the kids would be better off. But those complaining of the loss of the non profit are not stepping up. But that is ok. Perhaps those complaining should start their own non profit like Sam did. If Sam liked to run things in a controlling way, so what? He made the world a better place. What are we going to tell the future Sams of the World? Make your non profit sustainable after your death or don't bother starting it in the first place. Is it not ok if someone really doesn't like sharingn responsibility yet still wants to start a 501c3. People say "but it could have been better if only . . . " Perhaps Sam knew the implications of his managment style, but simply didn't want to run things that way. If its a problem, then someone elese could have stepped up and started a new non profit to replace Sam's old one. We have to be more accepting of temporary things unless we are willing to jump in to do something about it, which apparently nobody was in this case, even the people who are complaining. This article assumes that the founder syndrome is a problem because the non profit organization fails. Why not just say to the failing non profit, "thanks for the memories" and be on our way. Yes, we care about the kids. If only things were done differently or if someone would just do something to help, the the kids would be better off. But those complaining of the loss of the non profit are not stepping up. But that is ok. Perhaps those complaining should start their own non profit like Sam did. If Sam liked to run things in a controlling way, so what? He made the world a better place. What are we going to tell the future Sams of the World? Make your non profit sustainable after your death or don't bother starting it in the first place. Is it not ok if someone really doesn't like sharingn responsibility yet still wants to start a 501c3. People say "but it could have been better if only . . . " Perhaps Sam knew the implications of his managment style, but simply didn't want to run things that way. If its a problem, then someone elese could have stepped up and started a new non profit to replace Sam's old one. We have to be more accepting of temporary things unless we are willing to jump in to do something about it, which apparently nobody was in this case, even the people who are complaining.

]]> By: How to Deal with Tough Times in Your Nonprofit | Foundation Group Blog http://www.501c3.org/blog/avoiding-501c3-founders-syndrome/#comment-1118 How to Deal with Tough Times in Your Nonprofit | Foundation Group Blog Thu, 04 Mar 2010 16:45:52 +0000 http://www.501c3.org/blog/?p=1454#comment-1118 [...] Did other circumstances (like the bad economy) intervene?  Was it bad planning?  Bad advice?  Founder’s Syndrome? Understanding what derailed you allows you to focus on causes, not symptoms.  And don’t rely [...] [...] Did other circumstances (like the bad economy) intervene?  Was it bad planning?  Bad advice?  Founder’s Syndrome? Understanding what derailed you allows you to focus on causes, not symptoms.  And don’t rely [...]

]]> By: Greg McRay, EA http://www.501c3.org/blog/avoiding-501c3-founders-syndrome/#comment-1117 Greg McRay, EA Thu, 18 Feb 2010 16:55:41 +0000 http://www.501c3.org/blog/?p=1454#comment-1117 Unfortunately, it happens all too often. You basically have 2 choices: 1) resign and get as far away from this thing as you can or, 2) use the means available to you under the bylaws to correct the problems. If a majority of the board feels the way you do, the only thing stopping you all from taking control of the situation is your willingness to do so. You have to decide if it is worth the battle. Unfortunately, it happens all too often. You basically have 2 choices: 1) resign and get as far away from this thing as you can or, 2) use the means available to you under the bylaws to correct the problems. If a majority of the board feels the way you do, the only thing stopping you all from taking control of the situation is your willingness to do so. You have to decide if it is worth the battle.

]]> By: Barbara http://www.501c3.org/blog/avoiding-501c3-founders-syndrome/#comment-1116 Barbara Thu, 18 Feb 2010 15:46:59 +0000 http://www.501c3.org/blog/?p=1454#comment-1116 We have a new organization that is floundering. The Board was enthusiastic until a couple started doing things on their own. The President spends money, put up a trashy website, cannot keep records, will not replace a senile treasurer, and does it all without aprising or discussing with the Board. Some of us fear being accused of malfeasance at some point. Does this happen with small orgs? We have a new organization that is floundering. The Board was enthusiastic until a couple started doing things on their own. The President spends money, put up a trashy website, cannot keep records, will not replace a senile treasurer, and does it all without aprising or discussing with the Board. Some of us fear being accused of malfeasance at some point. Does this happen with small orgs?

]]> By: Greg McRay, EA http://www.501c3.org/blog/avoiding-501c3-founders-syndrome/#comment-1115 Greg McRay, EA Mon, 08 Feb 2010 10:55:28 +0000 http://www.501c3.org/blog/?p=1454#comment-1115 You are correct, Renae. An independent board of directors IS required. You are correct, Renae. An independent board of directors IS required.

]]> By: Renae http://www.501c3.org/blog/avoiding-501c3-founders-syndrome/#comment-1114 Renae Thu, 04 Feb 2010 14:20:50 +0000 http://www.501c3.org/blog/?p=1454#comment-1114 I'm just now venturing into researching how to start my non-profit when I discovered this very informative site. Thank you! My question is to Casey (or anyone else who can answer it); You mentioned you run your charity alone. Do you not have a BOD? I thought that was required in order to establish as a 501c3. I'm just now venturing into researching how to start my non-profit when I discovered this very informative site. Thank you!

My question is to Casey (or anyone else who can answer it); You mentioned you run your charity alone. Do you not have a BOD? I thought that was required in order to establish as a 501c3.

]]> By: Rachel http://www.501c3.org/blog/avoiding-501c3-founders-syndrome/#comment-1113 Rachel Tue, 26 Jan 2010 01:25:59 +0000 http://www.501c3.org/blog/?p=1454#comment-1113 This isn't just a theoretical idea. I've been on the board of an organization with founder's syndrome. It wasn't fun for anybody, including the founder who was overwhelmed, frustrated and felt attacked whenever anyone suggested an alternative plan to his. Unfortunately, a potentially great organization with a program that could have easily scaled to a national level, was left floundering for support and a plan. This isn't just a theoretical idea. I've been on the board of an organization with founder's syndrome. It wasn't fun for anybody, including the founder who was overwhelmed, frustrated and felt attacked whenever anyone suggested an alternative plan to his. Unfortunately, a potentially great organization with a program that could have easily scaled to a national level, was left floundering for support and a plan.

]]> By: uberVU - social comments http://www.501c3.org/blog/avoiding-501c3-founders-syndrome/#comment-1112 uberVU - social comments Mon, 25 Jan 2010 01:36:57 +0000 http://www.501c3.org/blog/?p=1454#comment-1112 <strong>Social comments and analytics for this post...</strong> This post was mentioned on Twitter by foundationgroup: New blog post: Avoiding 501(c)(3) Founder's Syndrome http://www.501c3.org/blog/avoiding-501c3-founders-syndrome/... Social comments and analytics for this post…

This post was mentioned on Twitter by foundationgroup: New blog post: Avoiding 501(c)(3) Founder’s Syndrome http://www.501c3.org/blog/avoiding-501c3-founders-syndrome/...

]]> By: Amy Kincaid http://www.501c3.org/blog/avoiding-501c3-founders-syndrome/#comment-1111 Amy Kincaid Wed, 20 Jan 2010 15:29:05 +0000 http://www.501c3.org/blog/?p=1454#comment-1111 Greg is right. What Casey is describing (I say with support and appreciation for her tireless and no doubt important work) is what I think of as (and I should come up with a gentler name for it, but here goes...) vanity organizations. A lot of organizations, most small, some not so small, have causes or founders who have not been able to attract enough committed "investors" or "true fans" to build a movement...and then to build an infrastructure that can sustain program and generate future growth. They are (at their essence) one-person shops. This is different work that requires different kind of leadership to accomplish (or, probably most effectively, a shared leadership structure). I don't mean that this work doesn't need to get done. I do mean that if a core group of invested activists cannot be engaged, something serious is missing. These kinds of organizations can be like sole proprietorships that die when the business owner stops working at that business. But they are not sustainable models that will be able to carry on the work, creatively and dynamically into the future. Greg is right. What Casey is describing (I say with support and appreciation for her tireless and no doubt important work) is what I think of as (and I should come up with a gentler name for it, but here goes…) vanity organizations. A lot of organizations, most small, some not so small, have causes or founders who have not been able to attract enough committed "investors" or "true fans" to build a movement…and then to build an infrastructure that can sustain program and generate future growth. They are (at their essence) one-person shops. This is different work that requires different kind of leadership to accomplish (or, probably most effectively, a shared leadership structure). I don't mean that this work doesn't need to get done. I do mean that if a core group of invested activists cannot be engaged, something serious is missing. These kinds of organizations can be like sole proprietorships that die when the business owner stops working at that business. But they are not sustainable models that will be able to carry on the work, creatively and dynamically into the future.

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