Why L’shem is closing as a non-profit
Lessons of starting a 501(c3) Non-Profit
Let’s jump into it. L’shem for those of you following is a tech incubator for the Jewish community. While the site has already been taken down its mission statement could more, or less be seen here. Initially, there was a push as to whether, or not it should be a non-profit.
For the Right Reason
I wanted it to be a non-profit, to be a people’s organization, and to be more so for the right reason. Turns out non-profits are highly political, and if one can turn for-profits into a meaningful organization, it can be more so for the right reason.
Community Donations
The vision was that it might get a faster head start due to donations. There are already a number of organizations doing something similar, pitching mine, when nothing to show for it yet, is difficult. Turned out, using my own money, would be easier to make it happen.
Having to report to a Board
To all the executive directors out there, my respect. It’s not an easy thing.
Red Tape
The amount of red tape I had to cut through, establishing it as an x organization, taking board members into consideration should anything go awry, and the fact I could be voted out, when I started, Nah uh. Honestly, I have such a bad taste of 501(c3)’s at this point in time. I’m going to aggressively try and turn things into a for-profit if I ever have a chance.
The Money I Put In, Was Never Tax Deducted
In order to move quickly, sometimes I would do quick one-off transfers without the board’s approval. Thousands of dollars, that went towards a non-profit became unwieldy, especially when juggling Shmayan and Razroo at the time.
Thinking of All Communities
One of the things that we as people do, and rightfully so, is look specifically after our community and causes dear to us. Many times, those who have suffered a certain type of cancer, or injustice in their community, will very strongly donate to that cause or fight for it. However, I felt like L’shem didn’t need to be that, especially with its tech. It can open up to all communities, and make them feel like it’s theirs. So I felt extremely conflicted with alienating donors and restricted by a non-profit. In addition, I no longer believed that focusing specifically on the Jewish Community was the right answer. I wanted the org to focus on as many communities as it could.
Software Development Became Super Slow
Software development became super slow, and that was honestly the last straw. Every single new project, every new person, every new thing, had to write down and specified what its purpose was for. That absolutely racked my mind.
It is a Profitable Business
The idea behind L’shem is profitable. So with the above in mind, decided let’s just go ahead, and turn it into a for-profit. Razroo Dios, an org underneath Razroo just for simplicity's sake, will be dealing with it.
So with the above in mind, while it came from a good place, I decided the best thing was to close the 501(c3), which in its self, was an incredibly grueling process, and have the mission statement be picked up by the Razroo Dios division. There is more to discuss here, but this is primarily the reason why.
