Hello, World. or Why isn’t this a nonprofit?!
When I explain the Pasayten Institute to folks, the most common question is some variation of: “why isn’t this a nonprofit?!”
My response? I tried that; no dice.
Fiscal Sponsorship
I wanted to start a nonprofit organization. The best piece of advice I got for starting was: “apply for fiscal sponsorship”.
Fiscal Sponsorship is probably the easiest way to get your nonprofit up and running. The process amounts to finding an agency that will “sponsor” you, meaning that they essentially act as your bank. They don’t give you money — if anything they take your money — but they allow you to accept donations as a 501c3 organization. Meaning: donations to your cause are tax deductible. Additionally, you are exempt from paying taxes on that money, at least as an organization.
Of course, the sponsoring agency takes a cut of each donation. That’s the arrangement.
I got a hot tip on an agency that was a reasonable fit. A organization devoted specifically to fiscally sponsoring artists. I was making videos — educational videos, sure, but still filmmaking — so I thought that, plus my rabid instance that Art is a part of a STEAM education, would be a great fit.
They didn’t think so. At all. I was flat out rejected.
Nothing is Easy
In starting this organization I’ve realized that nothing is going to come without an intense amount of work. There will be false starts and missteps. Like it or not, the Pasayten Institute will be built the hard way. Nobody’s going to swoop in and help in any overpowering, decisive way. The success and progress of the institutes is entirely on my shoulders.
Which if fine. If anything. It’s how I like it.
There’s no big donors to court. No big investors. No big, external voice to control the show. If the Pasayten Institute is going to work, I’m going to have to bootstrap this thing.
Nonprofit Requirements
I considered just putting in the paperwork to start my own nonprofit from the ground up. I downloaded all the forms. I read all the handbooks. Washington State makes it really easy.
The biggest obstruction to getting started was also the most exciting part: looking for a board of directors.
A nonprofit needs a board, and by all accounts, board membership is big responsibility. If the organization falls into debt and falls apart, that debt is transferred to the board members. They’re on the hook.
An organization needs three or four folks to make it legal, and if even one quits your organization must necessarily collapse. It’s good practice, then, to have extra board members, but this means convincing more people to help you out.
The executive director — the person doing the work of running the organization — is not allowed to be a voting member of the board. As the founder of the Pasayten Institute, this would be my role. This means I need to fill yet another seat, and I also must abdicate a lot of strategic control.
Given that almost everyone I talked to about my organization tried to steer me towards tutoring children and getting folks ready for College — the literal opposite of my intended mission — I decided it was better to just start by bootstrapping — doing the work on my own — and damn the board. It’s just too time-intensive looking for like-minded folks.
So I applied for a business license, and here we are.
