If you’ve read the other posts on our blog, you’ll already know loads about nonprofit organizations. We’ve covered everything from how they work to how to start them, and even some marketing tools and tips when it comes to fundraising.
But what about actually running one? What about maintenance and management?
Once you’ve familiarized yourself with what a nonprofit organization is, and once you’ve started your organization, you need to make sure you keep the ball rolling.
Here, we’ll talk all about how to (successfully) run your nonprofit organization. Keep reading to find out 5 best practices that can guide you in the right direction.
Before we get started, let’s do a quick recap of what nonprofit organizations are and the steps you need to take in order to start one.
A nonprofit organization, of course, does not operate to earn a profit. Instead, it operates to benefit a social cause. There are a lot of different kinds of NPOs out there, but one thing they all have in common is that they are able to file under the Internal Revenue Service’s tax-exempt status.
So, when starting an NPO, this is one of the most crucial steps you need to consider - actually registering your organization and submitting the necessary documents. You’ll also need to consider your mission, build your foundation, and assemble a strong team. Read more about this here: How to start a nonprofit organization.
However, it’s not just about educating yourself and starting out strong. It’s about consistency, and you’ll need to put just as much (if not, more) effort into managing your nonprofit organization.
Once you’ve done all of the paperwork needed to obtain tax-exempt status, you need to keep in mind that that’s not the end - not by a long shot. You’ll need to do constant reporting, so keep all of your receipts on file and make sure that you are adhering to your financial plans as closely as possible.
You’ll also need to make sure that you keep up to date with the requirements as set out by the IRS or your state (and find out which of the two entities’ laws you need to follow). Check when donations are tax-deductible and when they aren't by determining which 501(c) classification you fall under.
Consistency is key here, and nonprofit management is lost without this practice.
Members and volunteers are the backbone of nonprofit organizations. However, as with any other business, the right training and management is essential to these people actually being able to benefit your NPO. You’ll need to make sure that you put a lot of time and effort into managing them.
You can do this through training and workshops. Also look out for leadership qualities and delegate some important tasks to those who show initiative. This can only make your job easier and make things run smoothly. Others should receive clear job descriptions that allow them to fulfill a purpose.
Essentially, treat your volunteers and staff well: they keep your NPO going!
It’s not just volunteers and staff members that are important to the success of your nonprofit management. Of course, your donors play a huge part - after all, it is their funding that keeps your NPO afloat. So, part of managing your organization is also managing your relationships with your donors.
Doing this is a mammoth task, but it’s important to keep donor development at the top of your mind. Manage your donor relations by keeping in constant communication with them, ensuring you are expressing your gratitude, and asking them for helpful feedback. This can all go a long way!
Consider putting someone in charge of managing this entire department - yes, it’s that important.
Collect data. Analyze it. Use it. This point cannot be stressed enough. Not only should you be reporting back to your state or the IRS, but you should also be reporting back to yourself as an NPO. This is key to successful nonprofit management - and management in general.
Learn from your mistakes, recognize your successes, and make plans going forward accordingly. Decision-making becomes so much easier when it is informed by analytics. You’ll start noticing the patterns that will help you to keep the ball rolling and inevitably make management run smoother.
A good manager will always grab every opportunity to improve the process!
The last practice we encourage you to take is to source outside help. Being on this page, you’re already sourcing it! So, consider working with others to help you with the above practices (as well as the steps needed in order to start an NPO in the first place). Just like with any other business, it takes a village.
These people can be legal counsel members to assist you with the legalities, tax attorneys to help you with your tax-exempt status, or board members and volunteers to help you with general management. The most important thing to remember when it comes to management is that you can’t take it all on alone.
Different leaders for different tasks will always lead to great overall results!
So, now you know five of the best practices we think you need to exercise for successful nonprofit management. Nonprofit organizations are by no means easy to run, but it is often so worth it considering the results you see and the benefits you can give to others once you’ve started raising money!
If you are running a nonprofit charity, BiddingOwl can help you to raise money - for free. We are a free charity auction software, allowing you to hold auctions online. What’s more, we offer you hassle-free management of donors, items, solicitors, users, and volunteers. What else could you ask for?
Visit our website today and try it out for yourself.
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