Owning and running a non-profit organization can be rewarding. Some non-profit businesses are charities, others offer services to the community, yet others use the money made to fund investments in other businesses. The main definition of a non-profit business is any business that does not use the profits directly for its own benefit or the benefit of anyone donating money. While there is often a misconception that somehow non-profit businesses are easier to run than other businesses, it can be as challenging as any for-profit business. Here are some tips on running a successful non-profit organization.
Because non-profit organizations are solely dependent on funding to operate, market research becomes crucial to success. Many financial contributors will also do market research before determining whether their contribution would be best used in your organization. Know who your competition is, the market fluctuations, and expected earnings according to the research.
A Clear Mission Statement
The mission statement is perhaps the most essential part of the business plan for a non-profit organization. The mission statement is the organization’s explicit goal and will be used to inform potential contributors and fund sources of what your goals are as an organization.
Good Record Keeping
Though every business should have excellent record-keeping, it is especially important for the non-profit business. Every expenditure and contribution has to be tracked meticulously for accounting, funding, and taxes.
Founding and Upholding Your Funding Sources
A non-profit organization can’t succeed without funding backing it up. Finding and then upholding legitimate funding sources is extremely important for a non-profit’s survival and growth. The best way to maintain a steady flow of funding is to have a donor database and corporate sponsors. It is also recommended that a non-profit keep donors and sponsors up-to-date to keep interested in continued contributions.
Maintaining Good Public Relations
Non-profits, being focused on funding to stay in business, will need to maintain good public relations. Public relations don’t have to be limited to the community but can go beyond depending on the organization’s reach and what it does. Good public relations will also keep the focus on the mission of the organization.
Avoid Doing Everything By Yourself
Non-profit business owners often get founder’s syndrome, which makes them overly involved in the business’s day-to-day operations. This overinvolvement can overwhelm the owner, and the overextension will ultimately harm the organization. It is essential to use some of the funding to hire support staff and a few executives to help run different organization aspects. Delegation and making the responsibilities of each staff member clear will be key. Running a non-profit is challenging, and the success will be dependent on the staff as a whole.
Installing a Board of Directors
The board of directors is as crucial as the owner and staff. The primary purpose of the board of directors is the legal support and supervision of the non-profit organization. This management system will keep everyone in check, so no one person is in charge. The board of directors makes crucial decisions on fund allocation, staff, and the organization’s overall direction.
When an organization’s main objective is non-profit maximization, it becomes even more imperative that all activities conducted by the non-profit be run through the board of directors. This is to ensure everything is done most cost-effectively and efficiently possible. This provides donors and sponsors that their money is utilized to the best extent. Doing so will grow the non-profit’s reputation and help gain further donors and sponsors who believe in its mission statement.
Owning and operating a non-profit business can be a big challenge with great rewards. If you focus on these tips, it will lead down the path to success.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.