Comadre, I know you want to make an impact on your community. You have a caring heart and energy to give. Starting a nonprofit seems like a fantastic idea.
Nonprofits play a critical role in addressing social issues. Still, many myths and misconceptions exist. They can discourage even the most passionate leaders. This impact is particularly strong on women of color, preventing them from starting or thriving in these spaces. As women, particularly women of color, we face unique challenges. It’s time to set the record straight. Let us break through some of the myths that might hold you back.
Myth 1: “Nonprofits Are Easy to Start—Just File Some Paperwork!”
Starting a nonprofit is often portrayed as a simple process. Many believe that once you have a cause and file the correct forms, everything will fall into place. In reality, starting and sustaining a nonprofit requires significant time, resources, and strategy. It’s much like starting a business. You must be prepared with a strong mission. You also need a clear vision and a plan for long-term impact.
Reality Check: Wait a bit before filing the paperwork. A strong nonprofit foundation includes strategic planning, fundraising, governance, and legal compliance. It’s not just about passion; it’s about process and purpose. That sounds like a lot, I know. If you’re feeling overwhelmed by the steps, know that you’re not alone—and there’s support out there to help you succeed. And your first steps can be simple until you are ready for more involved actions and planning.
In 2020, there were over 1.5 million registered nonprofits in the U.S. Still, studies show that only around 50% survive beyond five years. They face challenges like lack of funding, leadership, and strategy.
Myth 2: “You Can’t Pay Yourself in a Nonprofit.”
This is perhaps the one that I hear the most. One major myth about nonprofits is that founders or staff members shouldn’t pay themselves. Another is that they should only pay themselves a minimum wage. This salary misconception often leads to burnout and stunted growth. While nonprofits are mission-driven, they still need to cover operational costs, including fair wages for the people doing the work.
Reality Check: Just because your organization is nonprofit doesn’t mean it has to be non-sustainable. Paying yourself (and your team) a fair salary ensures you can continue driving your mission forward. The skills, experience, education, and passion you bring to the organization are valuable, and you should be compensated for it. The key includes transparency in how funds are used. Accountability is essential to ensure they align with the mission. This supports organizational health.
Myth 3: “Leaders of Color Face Insurmountable Barriers in Nonprofits.”
Leaders of color face unique challenges, including underfunding, lack of networks, and systemic bias. However, the myth that these barriers are insurmountable is not only false but damaging. This mindset can discourage brilliant women from even attempting to start or lead nonprofits, believing that they will never have the same access to resources as others.
Only 16% of nonprofit executives are people of color, despite people of color making up nearly 40% of the U.S. population. Representation matters.
Reality Check: Leaders of color *do* face challenges, but we are also resilient, resourceful, and deeply connected to our communities. By building strong networks, advocating for equitable funding, and leveraging cultural strengths, we can—and do—lead impactful organizations. It’s important to surround yourself with people who understand your vision and amplify your voice. And when the road gets tough, remember that you’re not just breaking through barriers—you’re paving the way for others to follow. Pro Tip: Find a peer community, in person or online. (LINK)
Myth 4: “You Don’t Need to Worry About Fundraising in the First Year.”
Many people believe that fundraising isn’t a priority until a nonprofit has some time in practice. This myth can lead to financial struggles and a lack of sustainability down the road. While it might feel premature, planning for fundraising from the beginning is essential.
Reality Check: Fundraising is the lifeblood of your organization. It’s never too early to start thinking about how you’ll fund your mission. It starts with a simple plan and goal and building relationships. Build relationships with donors. Apply for grants. Plan campaigns early on. These actions can make all the difference in your nonprofit’s long-term success. As women, we bring a unique perspective to storytelling. Women of color provide a unique viewpoint as well. These perspectives contribute significantly to effective fundraising. Networking and planning are your friends when fundraising.
Myth 5: “Passion Is Enough to Succeed.”
Passion is the driving force behind every successful nonprofit, but it’s not enough on its own. Many nonprofit leaders, especially women, feel that their personal dedication to a cause will automatically translate into organizational success. Unfortunately, passion alone doesn’t build strong systems, hire the right people, or keep the lights on.
According to a recent study, more than 60% of nonprofit leaders report burnout, primarily because they underestimated the level of structure and support needed beyond their passion for the cause.
Reality Check: While passion is an important ingredient, you also need structure, strategy, and support. Surround yourself with mentors, advisors, and peers who can help you think through the business side of running a nonprofit. Equip yourself with tools, skills, and resources to transform your passion into sustainable impact. Sign up for free or low-cost webinars to learn more.
Pro Tip: Get on the waitlist for Passion to Impact: Clarifying Your WHY webinar here!
Conclusion: Own Your Power, Break the Myths
As women leaders of color, we are rewriting the narrative of what it means to lead in the nonprofit world. By debunking these myths and leaning into our strengths, we can create organizations that survive and thrive. Don’t let misconceptions stand in the way of your vision. With the right knowledge, resources, and community, you can build something that creates lasting change.
Remember, you are capable, and your work is not only valuable—it’s necessary. Keep pushing, keep learning, and keep challenging the myths that try to limit your potential.
