By: Suzie Wilson
If you have a passion to improve people’s lives, then starting a nonprofit organization is one of the best ways you can accomplish that. Not only does it give you the opportunity to make a lasting impact on your community, but it can also make for a thoroughly rewarding career.
That said, getting a nonprofit off the ground and sustaining long-term success comes with challenges. To help you start strong, The Manners Housing Foundation presents these tips.
Maintaining Legality
Let’s start with one of the nitty-gritty aspects of launching a nonprofit organization. Here are some legal steps you will need to take:
- Determine which business structure your nonprofit will operate from. Many nonprofits form an LLC or corporation.
- Name at least three board members for your organization (i.e., president/chairman, treasurer, secretary).
- Complete all the necessary paperwork for securing tax exemption and submit it to the IRS.
- Consult your state office to determine whether or not you need to obtain a charitable solicitation license.
Managing the Financials
Compared to other types of organizations, nonprofits face unique challenges when it comes to financial management. Here are a few ways you can prepare for success:
- Create a realistic budget for your short- and long-term goals.
- Regularly monitor your organization’s financial results alongside your budget.
- Maintain transparency with your donors; show them that you are spending money on effective programs that they care about.
- Since nonprofits cannot offer discounts or boost sales during economic hardship, make sure you are creating realistic cash flow forecasts and staying up to date on government policy changes, grant conditions, etc.
Day-to-Day Operations
Finally, there are a lot of moving parts in managing the daily operations of a nonprofit. Here are some essential tips to keep in mind:
- Keep your organization’s cause as a top priority, constantly measuring your team’s performance against your ultimate goal of serving the community.
- Track the time all of your board members, employees, and volunteers spend on tasks so that you can determine how to increase productivity.
- Learn to prioritize each task and project by urgency and importance.
- Look for free tools and software to help make your day easier. For example, even something as simple as a tool that can convert JPG to PDF can make life easier when you’re sending out things like official documents and marketing materials.
- Encourage your team members to practice self-care each day so that everyone can stay healthy and on top of their game.
- Last but not least, consider going back to school for your MBA to help you obtain skills necessary to continue building and growing your business.
One of the most impactful things you can do to benefit members of your community and beyond is to start a nonprofit organization. As long as you prepare thoroughly and take all the necessary steps, you can launch an organization that starts off strong and sustains success for years to come. The tips above can help you lay a firm foundation, but keep learning other strategies that will position your nonprofit to flourish!
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