While contemplating starting a non-profit business, the main misconception people have is that running a non-profit is easy as there is no pressure from investors and no dealing with taxes. However, they are wrong as running a non-profit business can be as grueling as any other business and can also be hard to manage without proper awareness and knowledge.
Any non-profit business owner will tell you that there is a lot involved in starting a non-profit business, unlike for-profit businesses. Luckily, the internet is full of information and knowledge regarding starting and running a non-profit business with ease. Below are a few useful and authentic tips that will help a non-profit business owner make better decisions.
Learn the Importance of Market Research
To successfully run your non-profit business, it is essential to keep an eye on the ups and downs of the market you are tackling or working in. Unlike for-profit businesses, a non-profit business owner often has difficulty finding contributor’s support if another organization, whether non-profit, for-profit, or even government-operated, is engaging in the same work. Knowing your surroundings is a key factor that can make a significant difference between the success and failure of your non-profit business.
Have A Clear Mission Statement
The mission statement is why your non-profit organization or business exists because, with no clear mission, your non-profit can easily get lost in the crowd of non-profit organizations and end up achieving nothing. Having a clear mission will also help in getting more funds for services and other programs.
Good Record Keeping Practices
Whether it is a for-profit or non-profit business, keeping records plays an important role in any business success. A non-profit organization must maintain its non-profit status and keep its tax-exempt status by filing the IRS’s required paperwork. It is also important to keep accounting and financial records safe and up-to-date.
Founding and Keeping Funding Sources
It is almost impossible for a non-profit business or organization to stay up and running without any funding backing it up. Finding and keeping a legit funding source for a non-profit business is extremely important for its survival and growth. The best way to generate donors is to have a determined management team managing the donor database while maintaining corporate sponsors through other contacts and means. To retain donors, you must keep them up-to-date on your progress and let them know they are appreciated by inviting them to a thank-you lunch on occasion.
Maintain Good Public Relations
Even though you are running a non-profit business, having good public relations is as important as any for-profit business. Never miss an opportunity to promote your non-profit business, whether you are with friends and family, at a corporate event, or in other situations where people are gathered. Besides networking, another great way to build public relations is to create a press release as it can put your name in the mainstream and inform people about your non-profit and even encourage them to donate.
Avoid Doing Everything Yourself
Non-profit business owners often get founder’s syndrome, which makes them overly engaged in the day-to-day operations of the non-profit. Most non-profit businesses have capable staff, and as the owner, you have to let some of the responsibilities go and give them to the appropriate staff member.
Having a Board of Directors
An organization’s board of directors is a community of leaders and is one of the most important aspects of a non-profit business. The main purpose of having a board of directors is to provide legal support and proper supervision of the non-profit. Having a proper management system can lead to better teamwork among employees and encourage them to work harder, ultimately benefiting your non-profit business.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.