Nonprofits

YC works with a small number of nonprofit startups in every batch, usually between 2 to 4 companies. The program began in 2013 and has worked with more than 30 companies so far. You can view the list of nonprofits that have completed the YC program.

Program approach

While 501(c)(3) nonprofit companies vary greatly in strategy, YC favors those that strive to cover their operating costs by charging fees for the products and services they create rather than relying on donations. This approach is preferred for two primary reasons:

• User feedback: Charging users for your product ensures that you provide the value you claim to deliver. Paying users complain loudly when something goes wrong; they will let you know when you've gone off course.
• Economic resilience: You are not as vulnerable to market downturns. Donations dry up quickly during economic downturns, while revenue-generating products and services can insulate you from that.

Nonprofit startups that charge fees for their products and services are more similar to for-profit startups. Consequently, much of the advice given at YC and the curriculum during the batch is directly applicable to both. During the batch, nonprofits are mixed in with the for-profit startups.