How Do You Run a Successful Nonprofit?

From the information provided by GrantWatch, we learn that creating a successful nonprofit organization is never easy. Sustaining one is even more difficult. So how do you run a successful nonprofit? In fact, if an organization is not well structured from its inception, it often results in a loss of control and direction. For example, without the proper plan in place, founders of a new nonprofit can easily be overwhelmed with satisfying its mission, fundraising for the cause, and responding to donor inquiries, all while operating the nonprofit!

This usually results in the founders spreading themselves too thin. This can result in ruining the nonprofit’s reputation before it even gets started. Your organization needs to provide a solid, positive experience for donors, volunteers and patrons if you want your nonprofit to succeed. Staying organized and focused on the mission is the best way to help ensure success for your nonprofit, in turn allowing it to help those in need.

1. Write A Mission Statement

Keep in mind, you can’t help every person you come in contact with. As a result, you must stay focused on the nonprofit’s mission. The mission of a nonprofit must be concise and specific. In your community, are you helping the homeless find shelter, or are you organizing activities for at-risk youth? Will your service area be within the county (where you operate), or do you plan to be a state-wide service provider? A successful nonprofit always focuses on the mission, despite the variety of requests that almost all organizations receive. Your nonprofit’s mission statement should align with its vision and values. Employees and volunteers at every level of the organization, along with other relevant stakeholders, should clearly understand the nonprofit’s mission.

2. Determine Realistic Goals

When you are starting a charity or nonprofit, you must set aside time to identify its goals. It is crucial to outline both short-term and long-term goals for the nonprofit. Always set realistic goals. Do not ‘bite off more than you can chew!’ By all means, create plans that are manageable and relevant to your community. Set a timeline for those goals and strive to achieve them. There is no foolproof method for achieving the nonprofit’s goals. However, creating specific goals is vital to building a successful nonprofit.

3. Build A Dedicated Team

Often, founders of a nonprofit are so passionate about their mission that they feel compelled to be involved in every aspect of the organization themselves. When that happens, they then fall into the role of a micromanager, even after the organization has grown too large for the them to do so correctly. This disorganized management leads to reduced efficiency and builds frustration among volunteers, donors and patrons. Avoid this trap! Delegating essential responsibilities to board members and other volunteers is essential for a nonprofit to succeed. After all, if the founders can instead focus on the nonprofit’s big-picture tasks, the nonprofit will be more likely to succeed.

4. Coordinate Volunteer Participation

Most nonprofits focus on delivering results in self-managed teams. To recruit and retain good volunteers, you must create assignments that advance your organization’s cause and benefit the volunteers who participate. Some volunteers will put in more hours than others. While some individuals may not be able to put in as much time as they wish, it’s still important to recognize those who have dedicated their time. For this reason, you should track the hours of each volunteer.

5. Thank Your Volunteers

Thank your volunteers by showing them your appreciation. Appreciation is an essential component of a volunteer’s retention. Recognizing individuals for their efforts helps to build self-esteem and confidence, making them proud to be a part of your organization. In effect, if volunteers feel appreciated they are more likely to feel connected to the program and continue their involvement. Also, thanking volunteers in a meaningful way is crucial. Be genuine and thoughtful when you thank your volunteers. For example, you can create a video or send thank you cards to show your appreciation to your volunteer team.

6. Keep Accurate Records

All organizations must provide required documentation, along with accurate records, to support and confirm the ‘legitimacy’ of their activity on the books. For many small organizations, a checkbook may be the primary source for keeping track of expenses. However, larger organizations will need a more sophisticated system for their records. For example, a nonprofit corporation should also keep records of its meetings. Furthermore, when an organization has more than one program, it should ensure records identify the income and expense items attributable to each program. A record-keeping system must include a summary of transactions. The books must show, among other things, gross receipts, purchases, other expenses, employment taxes and assets.

7. Enforce Strict Policies

Once fully operational, you must ensure consistency by enforcing established policies to keep your nonprofit focused on its mission. Your organization should create guidelines that support your mission. However, being open to change as your nonprofit grows is essential. One of the ways to always listen and improve is to develop a culture that provides a safe place for feedback with regard to your nonprofit. Creating an open, feedback-oriented culture allows people the freedom to give and receive feedback about all aspects of the organization. Give feedback productively, empathetically and sensitively.

8. Create A Funding Funnel

A nonprofit is not so different from a for-profit organization. Even though 501(c)(3) organizations are tax-exempt, they must still follow a rigid structure to become successful nonprofits. Regardless of this fact, nonprofits focus on social change rather than profits, if there is no funding, they can’t exist. Also, a successful nonprofit always relies on multiple funding sources to ensure its survival and success. The best nonprofits can also comfortably forecast how much revenue they expect over the next year and are up to date with their revenue pipelines.

9. Build A Grant Cycle

Last, but not least, you need to create your grant life cycle. Thousands of potential funding sources exist, including foundations and corporate sponsorships. As a result, your organization should also build a grant cycle so you can budget for when grants are awarded. The grant life cycle has three stages. There is the pre-award, award, and post-award stages. Create a sustainable structure that works for your organization. An easy way to accomplish this would be to access the GrantWatch Personalized Grants Calendar and Submission Tracker.

The Grants Calendar enables users to link and schedule grants for timely application submissions. Once grant applications have been submitted, you would then use the Submission Tracker to ‘track’ the status of the grants you have already submitted. Do you have two hours a week to research and apply for grants, or will you schedule your time to allow two hours a day for grant submissions? The key is to constantly search for grants and frequently apply for the grants you are eligible for. Design a grant cycle that works for you!

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