Post may contain affiliate links.
Nonprofits often do amazing work, and they have a significant impact on people’s lives and the community at large. They can be rewarding not just for the people using their services. They’re also rewarding for the people running them. When you’re in this position, you’ll feel it on a daily basis.
That doesn’t mean actually trying to run a nonprofit is easy. It often takes a lot of time, effort, and hard work. You’ll need to do it well to see the impact you want.
Despite that, you’ll still want to put the effort into it. The impact you’re having makes it more than worth it. But, that doesn’t mean you’ve to settle for being stressed and anxious when running your nonprofit. Instead, there are ways to make it easier for yourself, as long as you know what you’re doing.
More than a few practical tips will have quite an impact on your operations. By using them, you should make sure you’re running your nonprofit as well as possible.
Photo by Tyler Lagalo on Unsplash
1. Fundraise Properly
Your nonprofit will naturally need to bring in funds so it can operate. This can be done in more than a few ways. Fundraising can include institutional donors, like businesses, private donors, selling products, and more. You’ll have a wealth of options for this, and they’ll all have their pros and cons.
The trick to this is knowing which ones are right for your nonprofit. Research each of them and figure out the best ones to start. You can always adjust this as time goes on, based on your nonprofit’s needs. The more you put into this, the more you’ll get out of it.
2. Put Effort into Recordkeeping
You’ll need to spend a decent bit of time managing money when you run a nonprofit. This includes keeping track of donations, as well as exactly what the funds are spent on. It can often be one of the more complicated parts of the process, especially considering a few laws surrounding it.
Thankfully, there are ways to make it easier. Nonprofit accounting software helps you keep track of your nonprofit’s donations and expenses quite well. You’ll still have to put the time and effort into it, but it should be much more manageable as time goes on.
3. Pick the Right Structure
Most people believe that a nonprofit is a simple structure, but that isn’t the case. It can be a private foundation, a public charity, or a private operating foundation. These all require different filings, and there can be more than a few differences between each of them once you start off.
Then there are the pros and cons that each of them can offer, which are always worth being aware of. Take the time to research your options when you’re starting off. It’ll help you make sure you pick the right structure for your nonprofit while making sure it’s successful.
4. Stay on Top of Compliance Filings
Legal compliance is essential for everything, and that includes your nonprofit. While this is different from a traditional business, you’ll still need to put the time and effort into this. That doesn’t just mean making sure your donations, expenses, and daily operations are legally compliant. There’s more to it than that.
You’ll also need to make regular filings for your nonprofit. In the United States, for example, there is a yearly IRS Form 990. If this isn’t filed on time, you risk heavy fines. Repeat violations could mean your nonprofit status is revoked. Put the time and effort into it when you need to.
5. Define Your Programs
Nonprofits have to create and launch more than a few programs as they operate. These usually focus on fundraising and awareness efforts, among similar areas. Then there are the programs that directly focus on helping people in the community. Make sure all of these are as defined as possible.
It makes sure everyone knows what’s happening, which can be a great resource as time goes on. It’ll give your nonprofit a game plan, and these programs can be great tools to bring in donors so your nonprofit can keep operating in the future. Make them a priority.
6. Figure Out Employee Compensation
Compensation is a bit of a hot topic for nonprofits. Many people believe that the people who work for a nonprofit should be unpaid volunteers. However, countless other people believe this is unfeasible, as nobody can afford to work countless hours a month for no pay. They can’t afford to.
You’ll often need to strike a fine balance with this, and you’ll have to figure out worker compensation as early as possible. Ask yourself whether you should pay these workers, how much is fair, what you can afford, and similar areas when you’re starting and growing your nonprofit. Be as fair as possible with this.
7. Avoid Conflicts of Interest
While nonprofits can face multiple challenges, some of the more notable are conflicts of interest. This is when someone involved in the nonprofit directly benefits from the nonprofit’s operations. Usually, this is because they operate some kind of outside company that the nonprofit does business with.
This results in an unfair benefit, and you should avoid it at all costs. It erodes trust in your nonprofit, and it’s not exactly fair to your donors and beneficiaries. Put the effort into avoiding them as much as you can. While it can be tricky, it’ll be worth the time and effort.
It’s easy to see why you’ll want to run a nonprofit. You could already be doing it, but you might feel quite stressed about it more than you’d want. Despite that, you’ll still put the time and effort into it because of the impact you’re having on the community and individual people.
Thankfully, there are more than a few ways to deal with this. A few practical tips could help you get rid of quite a bit of stress while still making sure you’re having as much of an impact as possible. You’ve no reason not to use them.