Dawn Jordan is a former operations vice president at Bank of America. Her job was eliminated near the end of 2008. Previously, Ms. Jordan spent three years with the personal-insurance division of Countrywide Financial as vice president of customer retention. She lives in Laguna Beach, Calif. She has been posting her post-lay-off considerations and explorations in the Wall Street Journal.
Her June 5, 2009 post explored whether starting a nonprofit was a good answer to what's next for her? In considering a nonprofit, Dawn identifies some advantages for "going nonprofit" including: "Do I have customers lined up to use my service? And, do I have to invest my own capital?" She also notes that "the high unemployment rate has created a surplus of people looking to volunteer. It also means I can gain access to some of the most savvy business people in the country who otherwise wouldn’t have time to help or talk with me."
Now, I agree that all of Dawn's points certainly have credence. But.....what about finding a constituency of "owners" that will be the board? And what about the donor/foundation market (which is not really THAT great right now)? While Dawn really is very thoughtful and asking some of the right exploratory questions when considering starting a nonprofit, we all must remember that nonprofit businesses are struggling just as much as for-profit businesses and while the entry costs may be relatively low (in compariston to the for-profits), there are also many operational and long-range/sustainability questions that must be answered for the nonprofit.
So, Dawn, I appreciate your ruminations but really want you to think twice about whether a nonprofit is the best option for you. And of course, there is always THE most important question: what's the mission?
To follow Dawn's ruminations, check her out in the Wall Street Journal.