"You should quit. Your idea is dumb." After navigating confusing paperwork, investing thousands of dollars and waiting almost a year to start his nonprofit... this was NOT the advice Steven was expecting to get from his peers in veteran's services industry. Steven's story will remind you that passion, lived experience and perseverance are more powerful than naysayers and negativity.
[00:00] Kimberly: Hello everyone. Welcome to The Nonprofit Diaries, where we share the stories that don't make the newsletter. I'm your host, Kimberly Bottom, and this week’s guest is the executive director and co-founder of Shields and Stripes. This nonprofit provides whole-person optimization programs that help veterans and first responders heal from both physical and mental trauma.As a retired Air Force Special Forces tactics team leader, Stephen's own life was positively impacted by a similar program. It is incredibly inspiring to see someone use that lived experience and generosity to help others. Stephen actually reached out to me after watching an episode of Nonprofit Diaries to share his unique experience founding this nonprofit. It’s a story with a few plot twists, and I can’t wait for you all to hear it straight from him. Please welcome my honored guest, Stephen Nesbitt. Stephen, I am so thrilled that you're joining us.
[01:10] Stephen: Thank you for having me. I appreciate it. I can't wait to share some of my "lessons learned" from starting a nonprofit because there is so much for interested folks to know. People ask me all the time, "How do you start it?" or they simply lack the confidence to begin. I’d love to share my journey and how it all transpired.
[01:45] Kimberly: That is so helpful. It’s funny—after we scheduled this recording, I met somebody through a nonprofit hive who said, "I’m trying to start a nonprofit, but I don’t know what I’m doing." I told them, "Let me introduce you to my friend Stephen!"
This conversation is vital because it proves that if you have an idea and a dream, you can absolutely do it. Will it be a completely smooth process? Probably not, but that’s okay. We live and we learn, and hopefully, people will be able to learn through your lived experiences. So, setting the stage for your diary entry: once you had the idea to start this amazing organization, you hit a few bumps in the road, including some paperwork issues. Could you share a little bit about that process?
[02:40] Stephen: Obviously, I spent my entire adult life carrying a gun and a med bag; I was a medic throughout my career. I knew what worked for me regarding my own struggles with PTSD and physical injury, and I thought, "Man, I have to bring that to others." I wanted to reach the folks who don't even know that such care exists—especially conventional military personnel, law enforcement, and first responders who don't have access to that type of help.
To do that, I leaned on some mentors. I wanted to start a business, but I was asked, "Is this a for-profit or a nonprofit entity?" I truly didn't know the difference. I asked, "Wait, with a nonprofit, you don't make money? That doesn't make sense. How does it run?" I was so ignorant at the time. It was explained to me that the real question is: is the person going to pay for it themselves, or is someone else going to pay for those services?
I realized, "Well, somebody else is going to have to pay, because I wouldn’t pay $15,000 for this program out of pocket, and neither would most people in the service industry." So, I said, "Okay, how do you start this?" I asked my mentor if there was a building I go to or a phone number I call. He recommended a company that helps start businesses—which, honestly, I don't recommend, so I won't name them.
I thought you just took an LLC and converted it to a 501(c)(3). Wrong. I started an LLC, then realized it didn’t convert. I had to dissolve it, so that was $800 down the drain. Then, I asked the same company, "How do I start a 501(c)(3)?" and they offered to do it. I still had no clue what was going on. They helped me get my Articles of Incorporation in North Carolina and acted as my registered agent—which I later learned you can do yourself for free, rather than paying them $250 a year.
Finally, I found a tax attorney to help me file the federal tax-exempt form. Usually, that’s a six-to-nine-month process, and I paid about $2,000 for them to fill it out. During that time, you can receive donations, but you have to state that you are "pending federal approval." Most people don’t want to donate if they can’t get a tax receipt. We were fortunate to be accepted within six months. But before that, the attorney asked for bylaws. I asked, "What are bylaws?" He said, "It's the constitution that governs your board." I asked, "What's a board?"
[05:00] Kimberly: [Laughter]
[05:05] Stephen: He said, "The people who help run the organization." I asked, "Where do I find those people?" He said, "Whoever you want." So, I looked up my best pals and asked, "Hey, you guys want to be on my board?" It worked for the start, but it wasn't the board I needed long-term. It was a 9-to-12-month process of figuring out the paperwork, and it cost about $5,000 just to get it off the ground.
[05:40] Kimberly: Wow. So, once you had the paperwork figured out, you started looking at funding and operations. You mentioned that you reached out to your network and got some surprising advice. What happened there?
[05:55] Stephen: Even in the early stages, I wanted to make sure I wasn't just starting something that already existed. If I was, I would have just joined their mission. I looked at ten very large, well-known veteran service organizations, and nine out of ten gave me negative feedback. They told me, "Don't do it, it's a stupid idea. You should quit and come work for us." They’d say, "There are 40,000 other nonprofits in the veteran space; why start another one?" They wouldn't offer help or leads because they were threatened by the competition. It blew me away—these were established agencies telling a veteran to give up on his idea.
There was only one that offered guidance: Big Sky Bravery. Their mission specifically serves Tier 1 operators. I had the opportunity to attend their program and talk to Josh McCain, who runs the organization. He gave me great advice on where to focus our initial $30,000 for marketing. I really appreciated his belief in us, especially compared to the others who were threatened by the idea of us entering their "turf."
[07:15] Kimberly: That's crazy. You assume the nonprofit realm is all about helping people, so it's disappointing that happened to you. I'm glad it didn't deter you. Now you're rocking and rolling with sponsors! Tell us about what you've accomplished since then.
[07:35] Stephen: The most common thing those other organizations said was, "It's really hard." Well, hard is relative. Especially for someone from Special Forces—after 10 deployments and the selection courses I went through—I think I understand "hard." We persevered. We knew the need existed, so we set up a pilot program to test our nuances.
Currently, we run a three-month program. Three weeks are in-person with full-spectrum care, and for the remaining nine weeks, we transport them home but keep them in a virtual setting with a strength coach, physical therapist, dietitian, and psychotherapist.
Josh McCain told me, "You might have the greatest idea in the world, but if nobody knows about it, it doesn't matter." So, I had to get comfortable bragging about our work, which is very foreign to someone from the Special Operations world where everything is secret. But it had to be done. Since then, we’ve raised about $1.7 million in five years. We host alumni meetings to see where our veterans are now, and many of them have even tattooed our logo on their bodies. If someone is willing to place a permanent mark of us on their body, we know we’ve had a permanent impact on their life.
[09:10] Kimberly: That is amazing. You hit a few road bumps, but you figured it out and you're thriving. I'm so honored you shared your story today. And to anyone listening who is feeling down and out, reach out to Stephen. He won't tell you your idea is stupid! He’ll be your hype man. Thank you so much for being here.
For all you nonprofit professionals listening, this is your reminder to hydrate and practice self-care. If you want to share your journey, there is a link in the description of this podcast to submit your own diary entry. We’d love to hear your story. Until next time, guys. Have a great week!
