Nonprofits are now being created at a faster rate than any other time in history. Even though many of these organizations are started with the best of intentions, there is still a very good chance that they will fail in the first few months. Anyone that is thinking of developing a nonprofit should keep these few tips in mind to make sure that they remain financially stable and effective.
Create a Business Plan
It might sound unusual at first, but creating a business plan is one of the single best ways to start your nonprofit out on the right foot. A business plan is about much more than researching the competition or exploring price points. Your nonprofit’s business plan will include information such as your mission statement, philosophy, and financial plan.
Identify Alternate Funding Sources
Now matter how important your cause might be, exclusively relying on donations is a very risky plan. Instead, all nonprofits should think about some ways that they can raise money without direct donations from private parties and businesses. An example of this would be selling merchandise with the proceeds going directly back into your organization. People are much more likely to “donate” money when they have something tangible to show for it.
Hire the Right People
Most nonprofits will accept help in any way that they can get it, but your organization must have a foundation of driven and well-informed employees. An employee with unique qualifications such as a master’s in public administration programs might be able to do the job of five or six volunteers on their own. At some point, nonprofit leaders will need to carry out a cost-benefit analysis to see if actually paying employees will make the organization more effective.
Don’t Ignore Free Advertising
Many companies are constantly looking for ways that they can give back to the community, and working with these organizations is an excellent way to spread your name. Your volunteers should begin contacting local businesses to see if they would like to work with your nonprofit in any way. Even something as simple as setting up a booth at their next sale could provide you with a wonderful opportunity to receive more donations, make important contacts, and hire new volunteers.
If you are hoping to start a nonprofit in the near future, it is important that you begin thinking of your organization as a business. This includes finding the perfect employees, increasing your income, and decreasing your administrative expenses.
