Non-profit organizations are complicated companies to run if you’re not prepared for it. There’s still a heavy focus on income, there are employees to manage, and products or services to pay attention to: but the classification of a non-profit makes it dangerous when poorly managed.
Here’s how to make sure your non-profit runs smoothly and becomes a remarkable success.
Raise Funds and Save Money Early
Gaining grants and making money for the organization is vital in the beginning because it’s what gets it off the ground running. Consider applying for as many grants as your non-profit may be eligible for, and make it clear why you’re deserving of this money.
When this income comes in, try to avoid spending it all at once. Of course, you need to put money into resources like payroll, designing and building products, or handling services: you shouldn’t spend every cent you receive. Setting money aside in case the company needs it down the road is a good way to ensure you won’t be surprised by financial troubles.
Be Clear on Intentions and Needs
From the moment you start your non-profit, you should be as clear as possible on your mission and why it matters. Make it clear what you’re aiming to do through this non-profit, and discuss what your part in this can change for anyone involved.
Although it can feel like bragging to explain how much your non-profit can change and offer others, you must have this discussion so that people know why it happens.
Build Models of Earned Income
The easiest way to organize this income is through a grants management system. When you consider the amount of money your non-profit has made and has been given, you must make models of how that money will be spent and what it means for the non-profit.
The grants management system can quickly put together these models, but it’s also important that you understand what these figures mean. Although it can feel like a lot to stare down, knowing what the numbers mean ensures that you can discuss it and explain it when concerns are brought up.
Don’t Ignore Your Expenses.
When you have to spend on the company, don’t forget to note everything. If possible, keep a copy of the receipt and pay employees only in checks or through a payroll company. Although you may be more focused on gaining more money for the non-profit, you shouldn’t let that consume everything.
Failing to keep clear paperwork for your expenses could turn around and make your organization look corrupt or like you aren’t doing what you promised.
Make The Mission “Profitable”
Try to make the goal of the non-profit as “profitable” as possible. Like any other business, the mission of a non-profit is to make money; the only difference is that, instead of pocketing the cash, that money is divided up between charitable funding and organizational costs.
The more donations your non-profit brings in, the more money can be turned around and invested back in the cause, which will eventually save you from needing grants and people to give the organization money. Of course, there’s no rush for this, but it’s important to consider if you want to grow the company.