Non-profit organizations have slightly more financial breathing room than traditional businesses, but they still need to use modern financial techniques if they want to stay functioning. That can be a challenge, since many non-profit managers come from backgrounds that are outside the world of business and finance. Fortunately, there are a few techniques that are easy enough that almost anyone can use them, while still offering enough financial power to make sure that the non-profit’s finances stay as secure as possible.
Promote The Organization
Any non-profit that depends on the community for financial support needs to stay in the public eye. After all, nobody can donate money to an organization if they have never heard of it, and people are quick to forget about organizations if they do not think about them regularly. That means that marketing is a requirement for most such organizations rather than a luxury, and that marketing should focus on building up a brand.
There are a lot of ways to do that, and it can be worth calling in help from a specialist to make sure you choose a good one. In general, you should focus on making sure that people are aware of your organization and its goals. You should also make sure that all potential helpers know what they can do to support your group.
It’s likely that your organization could benefit from some skills that it currently lacks. Marketing is the most common example, but team management skills and technological knowledge are also common requirements. In many cases, the cheapest way to get those skills is to call in a consultant to work on a specific project. They’re much cheaper than hiring someone for a long period, and they can build infrastructure that will help your organization long after they leave.
Charity rankings often focus on the amount of the organization’s money that goes to overhead instead of the organization’s goals. That’s not the only metric for success in a non-profit group, but it is a fairly good indicator of financial health. Excessive overhead increases the need to raise funds, so it’s best to keep it lean. Since lowering costs will cause your organization to rise through many ranking systems, it can also help to attract donations.
Diversify Your Income
Your organization’s income should come from as many different sources as possible. Groups that rely on a few major donors often collapse if those donors run into trouble of their own, while those that draw funds from non-diverse investments go bankrupt if those investments fail. Diversification offers security, since it will ensure that losing a single source of funding will only mean the loss of a small part of the group’s income.