We Don't Need More Nonprofits. We Need Better Ones.
- Sharmon Lebby
- Jun 11
- 4 min read
There are nearly 1.8 million nonprofit organizations in the U.S. right now. And according to the IRS, about 100,000 new ones are being registered every single year. A lot of those organizations are struggling. Some will close before they ever really get started. So, it's time to get real and start asking the question nobody seems to be asking before they file.
Does the sector actually need another nonprofit?
I know. That's not what you want to hear when you're fired up about your idea and ready to change the world. But it might be the most important question you sit with before you do anything else.
The Sector Is Full.
When I was a guest on the Hustle and Faith podcast, I got asked what characteristics someone needs before going down the nonprofit path. And my honest answer surprised a few people, because I didn't start with passion or purpose. I started with a reality check.
According to Grapevine, nearly 100,000 new nonprofits are launched every year in the U.S. Most of them are competing for the same pool of funding, volunteers, and community trust. And a lot of them are trying to solve problems that existing organizations are already working on, sometimes in the same zip code.
Adding a new organization to that pile without a clear reason splits resources. It creates competition where there could be collaboration. And it often just recreates something that already exists nearby, except with less infrastructure.
Your cause matters. That's not in question. What's worth questioning is whether a brand new nonprofit is the right vehicle for it.
Starting From Your Own Experience Isn't Enough
A lot of founders start nonprofits because something happened to them, or someone they love, and they want to fix it. That is a powerful origin story. It's also an incomplete foundation.
Your experience is one data point. The community you want to serve has dozens more. And if you haven't gone back to ask them what they actually need before you start building, you're already doing it backwards.
This is where the savior complex sneaks in. It's not always something obvious or malicious. Sometimes it's just an assumption. "I've been through this, so I know what people need." Maybe. But probably not the whole picture.
As I said on the podcast, I want you to collaborate with your communities specifically so they can tell you what they actually need, not just what you think they need. The organizations that create real impact are the ones that ask before they build.
Three Questions Worth Sitting With Before You File Anything
These aren't rhetorical. They're the actual questions to answer before you spend a dollar or file a single form.
Does this idea fill a genuine gap, or does something like it already exist nearby? If it exists, that's not a dead end. That might be a collaboration waiting to happen. Or a place where your energy could plug in and create more impact faster than starting from scratch.
Is a nonprofit the right structure, or just the most familiar one? A 501(c)(3) is not the only path. Fiscal sponsorship, social enterprise, a program housed within an existing organization. The legal structure should serve the mission, not the other way around. And some people, honestly, get into this for the perceived tax benefits without fully understanding what nonprofit status actually requires. That road does not end well.
Who is this really for? Be honest with yourself here. If any part of the answer has to do with recognition, personal redemption, or a funding opportunity you spotted, that's worth examining before you're three years in and burning out. As I said on the podcast: if you can't take self out of it and make it about the mission, I don't necessarily recommend going into this.
This is not meant to discourage you. The point is to help you focus on what really matters. The founders who can answer these questions clearly are usually the ones worth betting on.
The Goal Isn't More. It's Better.
Build slow. Build better. That's not just a nice phrase I throw out there. It's actually the only way this works. I promise you.
Founders who rush past these questions are usually the ones who end up three years in, exhausted, chasing grants they're not ready for, running programs their community didn't ask for, wondering where it all went sideways.
The ones who pause, ask the hard questions, and build from the answers? Those are the organizations that actually change something. Not just the ones that look like they might.
The sector doesn't need volume. It needs organizations that are built intentionally, rooted in their communities, and structured to last.
Not Sure If You Should Move Forward?
That uncertainty is useful. Don't ignore it and don't talk yourself out of it either.
I built a free decision guide to help you work through exactly this. It walks you through the real questions to answer before you take the next step, so you can move forward (or not) with clarity instead of just momentum.
Watch the full podcast episode here.
Sharmon Lebby is the founder of Blessed Designs Consulting, a nonprofit consulting agency that partners with social and environmental justice organizations to build the strategy, systems, and storytelling that turn good intentions into real, lasting impact. When she's not writing, speaking, or advising, you'll find her chasing after her dog and consuming concerning amounts of vegan nachos.
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