Candid Launches New Nonprofit Startup Assessment Tool
Free online diagnostic helps aspiring and new nonprofit founders assess readiness to start and sustain investment-ready nonprofit organizations
Director of Candid Midwest
Kansas City, MO June 18, 2019— On Thursday, June 13, Candid hosted a kick-off event at the Kansas City Public Library to introduce the Nonprofit Startup Assessment Tool (NPSAT). Members of the community and nonprofit representatives were able to see a live demonstration of the tool, attend the complimentary course, Is Starting a Nonprofit Right for You?, and receive advice on topics ranging from fundraising to board governance from Candid staff.
The Nonprofit Startup Assessment Tool is for people who are considering or are already in the early stages of starting a nonprofit. Questions in the online tool assess background knowledge, capital, and work experience that are relevant to starting a nonprofit. Once the assessment is complete, the results provide customized resources to guide users on identifying funding, navigating the legal process, developing a business plan, and launching programs.
The nonprofit sector is growing significantly in numbers, diversity, and passion. From 2005 to 2015, the number of nonprofits registered with the IRS rose from 1.41 million to 1.56 million, an increase of almost 10.5 percent. The true number of nonprofits in the U.S. is unknown, however. Two factors contributing to this information gap are (1) organizations having gross receipts less than $5,000 annually are not required to register with the IRS, and (2) religious organizations are automatically tax exempt. Further, grassroots movements continue to broaden the definition of what it means to work in the social sector.
NPSAT was funded by a grant from the Ewing Marion Kauffman Foundation, through its portfolio for nonprofit effectiveness. “The Ewing Marion Kauffman Foundation is committed to building the capacity of Kansas City’s nonprofit sector and addressing key city issues that meet local community needs,” said Gloria Jackson Leathers, Senior Director of Kansas City Civic for the Ewing Marion Kauffman Foundation. “Our support of Candid (formerly the Foundation Center) on the NPSAT not only helps to strengthen our local nonprofit sector but it provides a universal tool and resource that will help entrepreneurs and nonprofit start-ups to assess the needs of their business before and after launching it.”
The NPSAT can be accessed online for free at grantspace.org/resources/nonprofit-startup-resources/.
The Kansas City Public Library was the perfect backdrop to launch the NPSAT. For more than 60 years, libraries have been key partners with Candid through the Funding Information Network (FIN). Candid has built up a network of 400+ community partners across the U.S. and around the world where members of the public can access Candid tools and programs on-site, for free. “We are proud of the FIN network and as Candid we are committed to its evolution in quality and scale to ensure that under-resourced and underserved communities can have direct access to the information and training they need to do good,” said Brad Smith, president of Candid. To find Candid in your community, go to foundationcenter.org/connect-with-us/funding-information-network
Every year, millions of nonprofits spend trillions of dollars around the world. Candid finds out where that money comes from, where it goes, and why it matters. Through research, collaboration, and training, Candid connects people who want to change the world to the resources they need to do it. Candid’s data tools on nonprofits, foundations, and grants are the most comprehensive in the world. Foundation Center and GuideStar joined forces to become Candid, a 501(c)(3) nonprofit organization. Find out more at candid.org and on Twitter @CandidDotOrg.