Disclaimer: These Articles were originally published on DNF Newsletter Substack and now merged as one.

Dear NGO Founder,

In my first letter, we discussed the importance of vision and mission. I hope you pondered it, as it influences today’s letter and many to come. If you haven’t read it or you need to read it again, you can click here(Link to A Letter to the NGO Founder: On Vision, Growth, and Impact).

The foundation of anything is important, which is why we must talk about structure.

I have read stories of businesses that started on passion then crashed due to a lack of structure. Take, for example, a business owner without a financial model who believes buying and selling is enough to build a profitable venture. Our own lives run on a structure, whether good or bad, rigid or flexible. If it is inadvisable for an individual to live without a structure, how much more an organisation of individuals?

Here are some foundational structures for your non-profit:

Registration: I understand that there are times we have an idea and we just start. We open social media accounts, make flyers, and not many people bother to ask if there is a regulation. Do I have to register anything? Just like there are businesses not registered under the Corporate Affairs Commission (CAC), there are also non-profits not registered. Registration is very important, there are corporate partnerships or even grants that become inaccessible because you’re not registered. Even private individuals might run a check. There are scam organisations, and people are more trusting when you’re verifiable and legally compliant.

Financial Structure: Yes, you are not a business, but you receive and disburse money, so you need a proper financial system. Who is keeping the records and books? If registered, are you filing annual returns? Who are the signatories to the account? What is your fundraising strategy? How do you keep donors informed? You need to be accountable and transparent in how you utilise received funds.

Recruitment: Many organisations start with the founder’s friends as volunteers. Of course, our friends are more likely to support our vision and passion before anyone else. That strategy comes with peculiar problems that I’ll address soon. What are the criteria for determining who joins your organisation? Who gets appointed to what role? Are they aware of the commitment level required from the start? What type of questions are on your sign-up form? Any interviews? I have experienced problems managing volunteers which was as a result of a poor recruitment structure.

Planning: The most popular word in January was definitely ‘planning,’ while ‘vision board’ would have been the most used phrase. Do you have plans for your organisation this year? Did you take a look at your vision and decide what you need to do this year to achieve that goal? How do you determine when a new project will commence? Planning saves you from a lot of problems. First, your volunteers will not struggle with managing their personal lives and volunteering, as they are aware of projects and schedules ahead of time. You have enough time for fundraising and for getting the required approvals for your projects. And your partners/sponsors are more likely to take you seriously.

It’s impossible to address everything about structure in one letter. But after my initial note on this topic, a founder reached out asking for more details on legal compliance. This leads perfectly into our first-ever guest feature, where we delve deeper into the legal framework that supports a strong structure.

I am pleased to present Ms. Hilda Obasanya of HT Legal, who shares four essential legal tips for a Non-profit Founder.

Her article expands on why registration is important, explains what tax returns have to do with NGOs, outlines the legal relationship between you and your volunteers, and advises on how to avoid implication in charges for money laundering or other financial crimes.

Her full article can be accessed via DNF’s resource link, here. If you need to consult on legal matters for your NGO or other personal affairs, you can reach out to HT Legal on Instagram here.

So, dear founder, as you build your organisation, this week’s question is a combined one:

Do you have the right structures in place, and are you building them on a solid legal foundation?

Disclaimer: These Articles were originally published on DNF Newsletter Substack and now merged as one