Employee in "my own" nonprofit org.?

[sana63]

What is the name of your state? Iowa

I'm web developer for almost 10 years.
After several projects I did for nonprofit organizations (NPOs) for free (for some of them I even pay domain name registration and hosting) I realized how nice is to work with a client when the money is not involved.
And, that was reason I got an idea to start nonprofit organization that will do for free everything (building website, maintenance, hosting,...) for other nonprofit organizations.
Did some research and I'm pretty ok with whole process of registration.
Though, one thing I wasn't able to find an answer: in case that one day I have a lot of NPOs interested in my offer and I have so much money from donations and/or grants I can pay NPO's expenses and still have enough money to hire somebody (myself) – how it goes?
What's process?
When Board is able to hire somebody?
What's the “sign” to NPO it's ready to hire somebody?
Can NPO hire somebody part-time?
If NPO hire executive officer and, suddenly, they run out of fund, does the employment (contract) automatically breaks or EO can continue to work without payment? In that case, if one day the fund gets some money again, would NPO reimburse him for previous period or “forget about it”?

In one of the posting on this forum I found that I can be member on Board and Executive Office at the same time because these are different kind of “positions”. I am interested in EO position (if ever) because I can do more and better for 8 hours a day working for NPO then ten hours a week (of my free time, after work) working for my current employer.

Any help will be very appreciated.

Thanks.

 

[tranquility]

What do you hope to gain from such a thing? Think it through once again. Money is involved, it's just not involved with the client. Donations don't just roll in, you have to "please" a person donating money as much or more as a client. To do what you propose is a big 'ol darn deal. I'm not sure you have considered things as yet because you're asking questions which come far later.

 

[sana63]

What do you hope to gain from such a thing?

Nothing. Let's say this way: If I can get the same salary and benefits I have today working for "regular" company while working for NPO - I would rather work for NPO. Feel better.

Think it through once again. Money is involved, it's just not involved with the client. Donations don't just roll in, you have to "please" a person donating money as much or more as a client. To do what you propose is a big 'ol darn deal.

I'm not saying you're wrong. But I would like you prove me wrong. After some research (internet) and some talks to people (mostly friends and coworkers) all of them said it's good idea and should work. Of course, "should" doesn't mean "must"
Please, help me to "think it through again". What I have to do to figure the idea is wrong or the idea is good?

I'm not sure you have considered things as yet because you're asking questions which come far later.

I'm not quite sure I understand this.

 

[tranquility]

At a basic level, you are going to take in donations and use them for your salary to do work. You will need to set up a 501(c)(3) organization and make sure you don't violate the laws on such organizations. You must handle all donations and paperwork for employees appropriately. Even though you are a single employee, you will need to file payroll reports (and later pay taxes on the W-2 income you receive) and will probably have a corporate structure and account for things in a like manner. You will need to convince people to donate to your organization. Why should they do so? Why wouldn't they just donate to the group they want to help and let that group hire a website designer?

Knock yourself out, but you are substantively increasing your effort. As I already wrote, do you think people who donate are not going to want to know where their money went? Especially if it is a grant of some sort, you are going to have to please the person making the donation far more than you ever had to please a client.

 

[Jaun22]

All good points.

 

[sana63]

Yes. In general, that's the idea. And now, after your words, it doesn't sound so good any more.
Though, when I donor the blood, I don't go to a hospital and take a look at people they need the blood and decide would/should I or not donate the blood. I just go to Red Cross or other place, right?
Also, with one donation of e.g. $10,000 they can "take care" of several NPOs, right?

Do you suggest to rethink the whole idea about making web sites for free and find a solution to charge other NPOs for the service (e.g. building web site for free but maintenance and hosting are $XX/month) and that way lower dependency from donations and grants, OR rethink about whole idea of starting nonprofit org. and start as for-profit company?

How then other NPOs exist if it so hard to get money from grants and donations?

And, thanks for you time and answers - they are really helping me in this issue.

 

[tranquility]

The purpose of a charitable organization is, well...charity. There are many who make a good living doing charity, but they are in large already-established organizations which are already doing substantial charity. I hear two goals from your posts. The first is to make an income and the second is to not have the hassle of dealing with clients who are demanding when they have to pay for your services.

The first is easily handled by starting your own business. You will have less overhead and you will make more money by doing it that way. The second, is not handled so much as transferred to other hassles. Hassles which will dwarf those of trying to satisfy paying clients.

We have a client who has a 501(c)(3) as a kitty rescue. Pretty much what it sounds like. She has a couple of rich patrons who donate to her and she spends the money doing the charitable purpose. Recently, one of the patrons wanted her to do things a little differently. She, after long negotions, told the patron to pound sand. Patron no longer donates the money. The rescue now, rather than losing a little money every year, loses a lot. The client continues to donate her time and now puts in a lot more cash.

Sure, it's tax deductible. But a tax deduction is not the money in hand.

As to your specific comments,

Though, when I donor the blood, I don't go to a hospital and take a look at people they need the blood and decide would/should I or not donate the blood. I just go to Red Cross or other place, right?

You can't donate the blood to specific individuals or causes unless the person is already known to you, you have the correct type of blood and they have a need. You donate to the Red Cross because you trust they will appropriately deal with your donation.

Also, with one donation of e.g. $10,000 they can "take care" of several NPOs, right?

Do you know someone with $10k who will donate to the cause of you making websites for charity?

Do you suggest to rethink the whole idea about making web sites for free and find a solution to charge other NPOs for the service (e.g. building web site for free but maintenance and hosting are $XX/month) and that way lower dependency from donations and grants, OR rethink about whole idea of starting nonprofit org. and start as for-profit company?

Make a for-profit company. Donate some portion of your income to charity. Donate some portion of your time and talent to charity.

How then other NPOs exist if it so hard to get money from grants and donations?

They grow and develop from the desire to do a charitable purpose. (or religious, educational etc.) Most all have a dedicated person(s) in the beginning who *believe* in the cause and work like heck to make it happen. One trick is to make others believe as well.

 

[sana63]

Let me clear something. My plan is not to start NPO to make myself position/job. I have a nice job as web developer and nice salary. I'm happy.
I help to NPOs with low or no budget at all by building, maintain and host their web site for free (it depends of NPO).
Right now, for one web site I need two-three weeks, sometimes a month. Depends of my free time (I have family too ).
With my idea of starting NPO I just wanted to spend all my time to making web sites to other NPOs. 2-3 sites per week. Maybe even more. Isn't that charity too?
I don't run for money. Otherwise I'll definitely never think about NPO. All I need is just regular salary I have now.

Make a for-profit company. Donate some portion of your income to charity. Donate some portion of your time and talent to charity.

In this case I'll be able to make the same amount of web sites, right? Maybe even less because I'll spend more time taking care of my own business and working more than 8 hours/day. What's there "charity"?