New Nonprofit Joins the Thousands in Virginia While Others Save Millions of Dollars
September 26, 2009
Paul Tchouke, Founder and Director of Africa Warmth Corporation, enjoys entertainment with guests at his first Multicultural Festival.
Nonprofit organizations abound in Virginia, with more than 8,942 nonprofits as of 2005, according to the Virginia Network of Nonprofit Organizations; that is 3,000 additional nonprofits reported by the Internal Revenue Service since 2000. But while things are crowded during this severe economic downturn, a new nonprofit, Africa Warmth Corporation, was established in April 2009, while Meals-On-Wheels and Central Food Bank of Richmond saved $7 million.
Established Nonprofits Combine Forces Saving $7 Million
The Central Virginia Food Bank and Meals on Wheels Serving Central Virginia merged to consolidate resources, saving an estimated $7 million, according to Richard Schultz, former executive of Meals on Wheels and currently an executive director of FeedMore, Inc., the umbrella corporation of the Central Food Bank and Meals on Wheels.
“We were using a for-profit vendor to prepare our meals,” said Schultz. “When we learned that we were both about to raise funds to build kitchens, collaboration seemed to suite us. It was experimental as there were no models to follow.”
The kitchen, which took four years to complete, was celebrated by the organization’s members for its first successful year since opening.
“We are happy to share what we learned from the experience,” said Schultz. “It wasn’t a typical merger. We didn’t fit a profile. We were both successful. Egos were put aside. We had to reassure employees as we went through with the merger.”
Conception of a New Nonprofit
In the beginning, enthusiasm for a mission gets things accomplished. Paul Tchouke, founder and president of Africa Warmth Corporation, came to the United States from Cameroon and decided that the United States was the ideal platform to showcase multicultural appreciation.
He said he successfully launched three festivals in Cameroon to lessen the intercultural conflicts of his countrymen. After developing his ideas, he established Africa Warmth Corporation on April 16, 2009 in Richmond.
“The concept of my organization is quite different from what my observation has so far led to in our community,” said Tchouke. “Organizations that work on culture are promoting their identity with their goal. I am promoting cultural diversity in order to build a culture of peace.”
Need for Help in Order to Help
But to successfully move forward with the organization, Tchouke needs help.
“As of today, I have five brothers and sisters of the world who joined me in organizing the Richmond Multicultural Day 2009,” said Tchouke. “It makes it clear that our Board of Directors is still incomplete. So people are still awaited.”
Marcia Flaherty, the executive assistant at The Community Foundation Serving Richmond and Central Virginia, is Tchouke’s friend of three-and-a-half years who helped file paperwork to establish Africa Warmth Corporation.
“It took nine months of submitting and resubmitting paperwork to be granted the IRS determination 501(c)3,” said Flaherty. “It’s a matter of public record. Once you have it, you file with the state annually, which is also of public record.”
Considerations for Beginners
Besides the business of successfully obtaining the 501(c)3, there is an amount of preplanning needed, said Flaherty.
“If you are starting a nonprofit, you should try to find organizations doing similar work,” said Flaherty. “Nonprofits need strategic planning and need to avoid duplicating efforts. At some point, it might be a good idea even to merge like the Central Virginia Food Bank and Meals-On-Wheels.”
Additionally, there are nonprofit organizations and educational institutes whose mission is to provide assistance and counseling to other nonprofits, including legal advice.
Different Business Models Provide Different Strengths
Although the donative nonprofit model, where an organization is chiefly supported by contributions, is a dominant form, another popular model is the fee-for-service model, such as The Greater Richmond Association for Retarded Citizens.
The ARC helped 238 individuals with disabilities obtain and retain employment in 2008 as well as provided care and support for 566 families in the Richmond area so families did not hear ‘no’ when they need special care for their disabled child.
Butler Jr., who occupies a chair on the board and who has worked for the Richmond ARC for 33 years, has seen grants and some contributions shrink.
“Because we have a fee-for-services model and work heavily with the government and military, maybe we are not hurting as much,” said Butler. “Some of our supporters stepped in and doubled their contributions as a way to offset what they knew we were not going to get elsewhere.”
Growing Possibility of Charity Fatigue in Richmond
With Richmond as the home base for more than 200 of the growing number of nonprofits, all are competing for attention and charitable donations from a fixed or shrinking number of companies and individuals. Butler calls it “charitable fatigue.”
“Fundraisers seem to happen all at the same time or in a cycle,” said Butler. “Some companies and individuals can’t give what they did previously. We’ve been lucky because some anticipated this and actually increased their donations this year.”
With nonprofit’s annual numbers growing even during the economic downturn, Butler said charity fatigue is bound to increase, necessitating more fiscal responsibility and creative business strategies, like the merger which inspired FeedMore, Inc. It is a case of work smarter, not harder.
Importance of Sage Counseling and Business Sense
Mismanagement is not only unacceptable, but also unethical, according to Paul Beal, General Manager of the Florida Sea Base of the Boy Scouts of America, who has a graduate degree in business management and over 20 years experience with different nonprofits.
“It would be immoral to pay myself before my employees or the light bill,” said Beal.
Having provided counseling to several other nonprofits, Beal provides no-nonsense advice.
“Don’t allow the mission statement to overwhelm the need to mind the business. Just because we care a lot doesn’t make things happen,” said Beal. “Boards never like to hear it; some get mad, but I have told them, either get the money, give the money, or get off the board,” said Beal. “If you don’t know what you are doing or can’t do it, you are wasting a lot of other people’s time and money.”
Butler agreed.
“The mission is very important, but without managing the business side, there wouldn’t be a mission for long,” said Butler.
