Starting A Non-Profit: Fundraising

It is estimated that a lion’s share of over 85% of the total collection is raised from direct individual donations every year. Comprising of both small and substantial donations, these sustain and develop non profit organizations. However all is not hunky dory as it might sound. If you are start up non profit organization you should plan each of your steps diligently as you are not very sure of the intricacies of the complex process of Non Profit fund raising.

As a first step honey comb your neighborhood and local community for potential donors, before moving on to Internet Fundraising.

The process of raising funds

There are many sources of funds such as availing grants and conducting product sales and special events or by phonathons. Online fundraising is the latest catch word among the non profit fraternity world wide in the present era. Basically you have to hit upon one or two major donors who will make substantial contributions to the organization. There are some simple steps that could be useful in drawing prospective into the project.

1. Compile a comprehensive list of all prospective donors who are likely to get interested in the line of activities of the non profit organizations.

2. As the saying goes, non profit fund raising is more of friend raising by organizing interest events such as dinner, concerts and carnivals among others with interesting prizes for the winners.

3. The next step would be to string up a mailing list with some of the big shots in the locality and all those persons who you think will be interested in your activities. Make sure to include complete residential and office address with phone number and all personal details and other relevant information of the donors in the mailing list.

4. Send a cordial letter to every individual listed where you can shed light on how the organization is involved in community services, which could be possible only with the donations in cash and kind from noble hearted gentlemen like them. Make sure to include a pre addressed return envelope while requesting for contribution as it might be easier for the donor.

5. Extend invitation to the prospective donor to be a volunteer. Ensure to engage a friendly volunteer coordinator to receive them to receive their calls and to clear all their queries. The coordinator should introduce the guests to the staff, and make them good and a part of the organization. Once a volunteer finds himself part of the organization, chances of making contributions increase

6. Do not lose heart for those who did not volunteer. You can try sending letters or newsletters and request them to speak to their civic groups and church groups about the organization as nothing can beat the effect of the word of the mouth publicity even in this digital age of internet.

7. Make sure to shower praises and thanks whenever possible as good words and deeds always pay off.

8. Last but not least, the donors should be taken into confidence about your activities that are being carried out with their aid. Provide all the latest figures and facts by way of news letters and email messages, which would keep up their interest and passion in continuing this work.

Starting A Non-Profit: Accounting Software

Customized accounting software is a great bet for non profit organizations for better optimization of resources. These software applications are solely designed to meet your purpose hence ensure better results than any ready made package. Large non profit organizations with many employees on their roles would naturally have complex accounting works as well, which cannot be handled effectively with manual accounting. A non- profit accounting software comes into the centre stage in situations like these.

Non-profit accounting software, developed exclusively for non-profit organizations such as NGO and Church helps in the management of finance, reports and projects apart from keeping an account of the funds and assets of the organization. A standard non profit accounting software would help you to keep track of all expenses such as maintenance, electricity charges, material procurement and salary among others with just a few mouse clicks

Probably the most useful feature of any non-profit software would be to keep a strict tab on the donations and grants received as it is these funds that form the back bone of any non profit. In addition, this software would also enable you to get other relevant statistics such as attendance of sponsors and donors besides tracking events. No wonder that these handy software packages have become a red hot option among all non-profit organizations, who are striving to make greater strides.

Peachtree Premium Accounting for Nonprofits: Is one such non-profit accounting software from the work desk of Sage. This premium software, designed exclusively for the Accounting for Nonprofits helps you to keep account of every penny of the annual budget of the organization. Well known for its flexible features of scalability, affordability and reliability, this accounting solution manages donor aid, programs and fund reports and other core accounting features. As your organization grows, Peachtree Premium could also be easily upgraded to higher levels to brace it up to meet your increasing challenges and diverse needs. It is easy on your wallets and is an affordable option even for small non profit organizations, which function on a shoe string budget. No other package can easily match the precision and reliability of this accounting package.

It goes without saying that Peachtree non-profit accounting software has become the trusted aid for millions of non-profit organizations. No matter whatever stumbling blocks you might have in your accounting system, you can solve these by making use of this state of the art accounting software. If all these are not enough, it is easy to install and easier to learn, which makes it all the more popular.

Starting A Non-Profit: Get It Running

To be a new member in the Board of a non-profit organization is easier said than done as he shoulders countless responsibilities from tracing membership records to digging out vital documents like sponsorship letters from mounts of data, which would be a near impossible task many times. It not just robs the board members off their precious time, which could have been put to tackle urgent tasks otherwise. Lack of a well devised succession planning makes the matters worse where the never ending cycle goes on and on with every new face on the Board.

All you have to do is to follow the following steps to streamline the activities

1. Creation of a centralized database: Lack of a standardized format to record the members’ details and contact is one of the most common ills plaguing the administrative set up of non profit. Many a time, different secretaries will find their own convenient methods to store these vital statistics on their own computer. As these are not categorized into appropriate groups, or are updated regularly, the new Board Members would find it extremely difficult to find the latest data file. The best alternative would be to find a low cost online solution whereby contacts are well categorized, which could be accessed easily by the Board Members.

2. Start Folder system for Key Documents: Folder with labels is the simplest method to organize key documents and all that is required is to file the appropriate documents in the corresponding folders.

3. Set up a Disaster Recovery Plan. The Board should know precisely where all its documents (both hard and soft copies) are stored. Set up a disaster recovery plan to salvage the documents incase of calamities like fire or flood. Make sure to store all documents in a server with adequate back up facilities both on and off site.

4 – Chart a distinct Handover Policy. When old members hand over the charge to new members, a checklist of the documents that are handed over should be prepared. This can be scrutinized by both incoming and outgoing members so that any discrepancies could be taken on the pot

5 – Annual Recording of Key Dates: Red letter days like Board Meeting, Member General Meeting, registration days and annual dinners among others could be documented in a handy calendar system so that the board members could be intimated well in advance apart from undertaking the preparation for conducting these events

6 – Append responsibilities of the Board Members: New members who aspire for a Board membership should be given a list of duties and responsibilities that are expected of them so that they could prepare mentally before deciding whether to contest the election or not.

Starting A Non-Profit: Strategic Planning

It is interesting to note that the size of any organization has a major role in determining the objectives and activities of that organization rather than its cult image of for-profit or non-profit. Small non-profit and for-profit organizations function in the similar lines that are strikingly different from the bigger versions of the same genre.

However, it does not mean that there are no differences between the lines of functioning of these two at all. There are certain characteristic differences between non-profit and for-profit organizations especially in the planning segment. While for-profits, stress on profit making activities, the non-profit tend to focus on matters of board development, fund mobilization and volunteer management. Thus, Non-Profit Strategic Planning is all about ensuring the interest of the board and the overall development of its various units. Non profit organizations underscore on garnering funds with not many other planning activities

The newly set up non-profit organizations need to start from the scratch in making a formal plan including all the vital considerations, applicable to a typical start up non-profit organization. While in the case of pre-existing non-profit, a long term planning with inputs from the activities of the past many years is essential to steer clear of the past flaws and to achieve the organizational goals. A strategic plan helps you to aim for the future from the present position. Ideally a strategic plan is designed for a period of 3-5 years with the following inputs and statistics.

• Mission statement with the objectives and activities of organization: Reiterate your commitment to the cause for which the organization was set up and focus on the line of activities to make sure that you are right on track. It also helps to take stock of the present set up and to set out on any damage control exercises that might be required
• Vision statement that projects the future goals: it helps the members and donors of your non profit organization to know more about the future prospects of the company. It also helps you to garner the much required publicity from the general public, which helps to generate enquiries and to draw more members into your fold.
• Values and policies of the organization
• Assessment of the present situation and prevailing conditions of the non-profit organization: It is one of the most important part in the strategic plan of any organization as it is the sum total of the performance and achievements till date and the minor blemishes if any that you would like to solve in the coming years.
• Immediate and long term goals:
• Strategic planning to meet the objectives
• Last but not least put in the best effort to convert all the strategic plans into reality. Success is all yours.

Starting A Non-Profit: Advocacy

In the last three decades or so there has been a spurt in the nonprofit advocacy and public policy groups and at present there are over 1000 nonprofit organizations, approved by the IRS, which are actively engaged in changing public opinion and public policy. Three-fourths of these organizations were founded after 1970 (Johnson 2007). This growth of non profit agencies and policy groups has also fallen in line with the expansion of government. They play an important role in ensuring social equality and justice by taking up the issues of the poor and the less fortunate souls. Nonprofits time and again reiterate that their contributions and donations support their activities and the social cause for they have united for unlike a few individuals as in the case of conventional business organizations.

Urban Institute (2006), which researched on the advocacy activities of Nonprofit Organizations’, opines that the philanthropic advocacy, which focuses on improving the living conditions by addressing issues such as poverty and disease through the voluntary efforts of private persons has been an integral part of the mission of these organizations. Efforts are on to tackle the long standing issues of poverty, disease, and despair by offering direct assistance to the distressed with the aim that this free should be free from pain and despair. The basic objective of nonprofit organizations is to improve the socio economic and living conditions of people by bringing about marked improvement with the sponsorship and voluntary activities of private persons.

. Nobody can deny the fact that in the present world, nonprofits has a significant role to play that never before. However the reality is that there is a dip on the nonprofit and foundation resources and government spending cuts according to Neighborhood Funders Group (2002). In the absence of a surveillance mechanism the public policy will only cater to the rich and the influential. By ensuring the participation of nonprofit organizations in the public policy arena, will help to hear the voice of the poor and the oppressed, which often go unheard. In addition it empowers the nonprofits to fulfill their missions to bring about lasting improvements in the society. (Neighborhood Funders Group, 2002)

Unless the non profit sector start to actively engage in public policy, these agencies are more likely to lose out on resources. Richard Male (2005) tries to find answers to some of the complex queries such as how to become more involved in the policy and to mobilize public support for the cause

Starting A Non-Profit: Technical Help

Many non profit organizations have appallingly low technical awareness and are in urgent need of sound technical help. Do not be surprised if you see the staff of a non profit taking the opinion of the CEO regarding a broken down printer or a slow internet connection( if they have one), because this is how things work in these organizations.

Just flip through the following five sure- fire signs where your non-profit needs serious technical assistance:

1. Is your customer- care officer spending more time in meddling on a printer that refuses to work than being on his work desk? If yes, it is nothing but sheer waste of time and effort. You are badly in need of the services of dedicated IT service personnel to handle these situations. Optimization of resources and time management plays an important role in the success of any organization rather than hoping that everything can handle every activity.
2. In any office set up there could be a few computer geeks with reasonably good computer skills alright. But it does not mean that just because the Vice President- Personnel is good at computers, he should leave his all other important assignments to help the staff in fixing the printer or to search a missing file from a computer folder. If you had designated these issues to the appropriate staff members, VP- personnel could actually get along to get his work done as per the deadlines.
3. If the staff in your non profit organization does not know that regular backing up of computer files is very important to ensure that you do not end up losing everything important to your organization, you are inviting trouble. Regular monitoring of data and daily backing up of data ensures not just accurate data management buts also data restoration in case of a computer break down.
4. Have you ever come across a difficult situation where an important file that you need to work on happens to be stored in a computer whose user is on a long leave? Finding the file is easier said than done as no one knows the password or the folder in which the file is stored. This might result in irreparable damages and loss of face in the industry! If multiple users can access the same set of information, it could been stored and shared in network folders, so it doesn't really matter whether staff is on or off, work will not suffer.
5. Non-profit organizations can access their network of computers and data from a remote location other than the office space. An experienced IT provider might help you to install it to your benefit.

If you have started thinking that there should be a better and simple way to run your non profit organization then that itself is the most striking sign that you are indeed in need of technology assistance.

Starting A Non-Profit: Grants

"About 90 percent of applicants are rejected just for not following the required guidelines," this startling was revelation made by Elana Edelstein, Assistant Director of Communications, Marketing and Foundation at Glendale College. While applying for grants most of the non-profit organizations fail to follow the prescribed guidelines, resulting in the rejection of their applications.

The method of grant writing is similar to making a comprehensive business plan.

Follow a blue print: before writing grant proposals, you should have a thorough understanding of the program and its core requirements. An ideal grant proposal should clearly project the organizational set up and objectives to qualify the standards of availing grants. Just like a weak and discreditable business plan would be rejected outright by the Venture Capitalists, an off- target grant proposal also would fall flat in its face for not being credible.

Participate in a grant writing forum: There are many short-term grant-writing seminars on offer such as like Grantmanship Training, which would improve your skills and strategies in preparing a precise and perfect grant proposal in no time.

Flash a robust financial outlay: A sound and sensible financial plan with accurate projection can enhance your chances of getting the grant proposal approved. You should have a well laid out plan on how you are planning to spend the grant.

Stress on research: Extensive research forms the bedrock of any business plan, you should have a firm grip on the Mission, Vision, and Objectives of the organization. Take time to carry out a comprehensive analysis. You can take out your proposal from the rest of the group and try to make out the upsides of your organization with respect to the others. Take a close look at your competitors' business plans, stuffy their tax returns, and their sources of the grants-the most important piece of strategic information you might ever need. Play smart; the easiest and the most sure shot way to get the grant would be to approach the same donors who offered grants to your competitors.

Tag along the guidelines: Make sure to follow the guidelines strictly as any complacency in this area might spell doom on all your future plans. Strictly follow the guidelines as application grants very often require you to comply with some of the most stringent guidelines in the industry. You stand a better chance of bagging the grant just by following the guidelines.

Make the most of Internet: make sure to employ the Internet to your maximum benefit, now that all the facts and figures are right at your finger tips.

Starting A Non-Profit: Email Marketing

Though internet and email have revolutionized the conventional business building techniques, it is surprising that many non profit organizations do not make use of this powerful marketing tool to collect email addresses and to make a data base of their members, patrons and activists.

Most non-profit organizations still communicate with their members using the conventional means such as mail or phone. It is estimated that 30% of the total population of the United States and Canada have access to the internet, which translates into the creamy pie the customer base. It goes without saying that by not using the email effectively these non profit organizations are missing out a huge chunk of potential customers who would make these organizations formidable. Even if your own non-profit organization does not use of email for communication, it could still be used for compiling vital statistics and customer data base that would come handy in future.

Typically, newsletters have always been the time tested tools of communication among the non profit organizations. However many a time, newsletters fail to convey timely information as there will be a time lapse of over two months between creating the design, printing and mailing them. Where as email communication ensures the swiftest mode of communication where you share the latest developmental activities of the organization among the patrons and members online. In addition, you can also save a pretty penny by way of printing and postage charges. So, it is high time that the non profit organizations, especially those with membership groups, start exploiting the email technology to streamline its activities.

Remember that the most effective email newsletters would be those that cater to the target audience. Make sure to know the pulse of the audience while designing online newsletters to be bang on target. In addition, you can also add snappy email broadcast messages, latest organizational information, handy tips, events calendar or educational opportunities in your industry among others.

It would ensure steady interaction with the audience and would notch up the open rate among your members. Make sure to send newsletters promptly and consistently; for instance if you are bringing out a weekly newsletter ensure that it reaches the viewers at the same day same time to cater to the anticipation of the interested viewers who might miss it out otherwise if sent randomly.

Make it interesting so that the readers might be tempted to forward it to their friends and associates. You can also create a link that would automatically forward the newsletter if the reader finds it useful. Newsletters can also be dispatched to non members in a way to increase the customer base of your nonprofit organization.

Starting A Non-Profit: Getting Started

The million dollar question of how to start a non profit successfully looms large in the minds of many aspirants. It is more of a gamble where many companies perish faster than they sprout. In the US out of the 30,000 nonprofits created annually, 50 percent of the companies flop. The reasons are not clear however lack of planning and coordination are cited as the major causes for this debacle by business analysts.

Once you decide to do business, the next important thing to decide is whether it going to be a non profit for the promotion of a specific cause or for profit. The major difference between these two genres is that while nonprofits utilize the revenue to carry out their programs for profit companies share the profits among its promoters and stockholders.

How to start a nonprofit successfully?

Setting up a non profit that promotes your social cause to enhance the quality of lives on earth can be affected if the handy keys are tagged along. This block by block illustration would empower you to set up a 501(c)(3) nonprofit entity in no time. In case you are on the look out of more comprehensive information on filing the documents, sample bylaws, and sample articles of organization are easily available on our website.

1. Make a mission statement: A simple and snappy catchphrase in or two short sentences that form the quintessence of the objectives, values and ideologies of your organization. The mission statement should explain all the vital details like the people behind it, the line of action, its future goals and the area of operation among others. A good mission statement is half your job done as it conveys your ideas clearly and precisely to the customers thereby offering a jump start to any organization and its prospects.
2. Setting up a Board of Directors. A board of directors is compulsory for a nonprofit organization and the number of members might differ in various states. A perfect board which supports the mission could be a great driving force behind any successful nonprofit organization. The members should devote their time and faculties in making the mission possible.
3. Draft and File Articles of Incorporation. Articles of Incorporation form the official testament of the formation of your non profit organization, which should be files in the corresponding state agencies. It is an important piece of document which shields you from legal liabilities that this organization might get into in future. It rests the responsibility of holding the debts and liabilities on the corporation and not the individuals functioning in the organization. Make sure to seek the legal aid from an attorney, experienced in non profit law so tat you do not end up in a soup by committing some major blunders.
4. Draft Bylaws. Though non profit organizations need not be file the Bylaws for the 501(c)(3) status these could be a handy blue book on the day to day governance of the organization.
5. Allocate a budget. A budget is nothing but the financial plan of your company that helps in attaining the company goals. Without sufficient funding your objectives and missions might fall on their face. Garnering the start up income and planning outlay for each expense could very well be your greatest challenge while setting up a non profit. In case you find the going hard, do take professional advise

Starting A Non-Profit: Tips

Today, there are many entrepreneurs who don various roles in the functioning of non profit organizations. There are many types of non -profit organizations such as non -descript children's sports teams, local chapters of societies, or reputed charitable services with a fair standing. The organizational setup and the management style also might vary from case to case. In some cases there would be only a couple of people to handle all the chores while in some others there will be a well managed set up with a professional team manned by well paid staff. Here are some useful tips that would aid you in running an organization successfully.

What is Non-profit?

The term Non profit, Not-for-Profit, or Tax-exempt relate to a peculiar type of business entity recognized by the Internal Revenue Service as a non profit organization unlike a regular business line aimed at making profits. Non profit entities enjoy tax exemption. An accounting professional proficient in non profit tax rules would be the best person to guide you in this matter. Nonetheless if you are a very small non profit organization with the approved non profit status issued by IRS, you can handle the affairs easily as you are right on track.

Many people misinterpret non-profit entities as loss making organizations. However the fact is that you still have to make profits and the only startling difference is in the utilization of the extra revenue generated. Sustainable business operation is possible only if your income is more than the expenses. Nonetheless in a non profit organization the excess money is used up for fulfilling its mission and noble deeds while in a for-profit business, the profit will be shared among the promoters.

Doing the ground work

Make sure to have a well laid out plan before jumping head long into the business. There should be planning sessions at regular intervals to take stock of the situation and to assess that everything is going as per the original plan. A planned approach could go a long way in ensuring the general well being of the organization.

The type of planning and the time required for it will ultimately depend on the size of the entity and the nature of your business line. In case you are in the helm of affairs managing the show single handedly all you might ever require is a handy to-do list that you could jot out in a few minutes. However in large organizations, you need to put your head together with those of other board members to chalk out plans to materialize the organizational objectives and goals by guiding the organization in the right direction.