The US has over 1.5 million nonprofit businesses, but there’s room for more. Nonprofit organizations provide critical services to our communities, so you’ll be making a difference in the lives of others when you start your own.
Running a nonprofit is like running any other business. It’s all about maximizing revenue, minimizing costs, and meeting the needs of the community while making sure you take care of yourself. If you can do these things, owning a nonprofit will be the most rewarding career path you ever take.
Here are six crucial things you need to know if you’re thinking about starting a nonprofit business.
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Contrary to popular belief, nonprofits earn money. These businesses use most of their revenue to pay for organizational expenses. The remaining funds go towards their cause.
To maintain the financial health of your nonprofit, you’ll need to know how to handle money or get help from someone who does.
2. Board Members
Running a nonprofit is not something you can do alone. Your board members are the people who will help guide your business and make decisions on its behalf.
These people should have experience with the type of business you are running. It makes sense to elect a teacher as the board member for a school or a doctor for a hospital.
3. Time Management
Nonprofits take a lot of time. You’ll be spending most of your days attracting new donors so you have enough money to make an impact on the world. Nonprofit management requires you to let go of a few hobbies, so reorganize your schedule to make time for your business.
4. Products and Services
Products and services help earn more money for your cause. They also provide an excellent opportunity to market your nonprofit. Use social media ads and promotions on Facebook that drive traffic to your website so more people can buy what you’re selling.
5. Limited Resources
Nonprofits have significantly fewer resources than for-profit organizations, so they have to be extremely careful about how they spend their money. You also have to protect all your assets, so it’s wise to have insurance. For example, most ministries have church insurance to protect their buildings and property.
While it may seem like a nonprofit can get away with running on volunteer labor, this is not the case. You’ll have to hire and pay employees. Nonprofits need people who are dedicated enough to make their jobs a priority.
You can still get help from volunteers, but don’t expect them to work full-time hours.
Start Running a Nonprofit Like a Pro
Now that you know what to expect, there’s no reason to be afraid of running a nonprofit. The only thing that’s standing between you and success is hard work. With the right planning and great employees, your nonprofit will be able to help many people.
Remember that it’s still a business at the end of the day, so check out a few of our business articles to make sure you’re doing everything right.
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