How to Manage a Nonprofit Company

A nonprofit company can contribute greatly to the community it serves. What many people do not know is that it needs to be managed just like any other company in the corporate world. While you don't need to go to business school to manage a nonprofit, reading this guide will fill you in on how your nonprofit can give back while also staying afloat.

Difficulty: Moderate

Instructions

1. Treat your donors like customers by providing them with top-notch service. Send prompt acknowledgments of their donations and stay connected through direct mail or electronic updates. If necessary, purchase donor management software such as Raiser's Edge to help you stay organized.
   
   

2. Draft a marketing plan that effectively promotes your mission statement in the community. It should include a plan for capital campaign fundraisers, website content, public relations and direct mail that will widen your market presence. Your marketing strategy should also include long-term goals that will keep you focused on upcoming initiatives.

3. Form strong bonds with your board members since they can be your most effective source of fundraising and organizational knowledge. Maintain a monthly meeting schedule and designate recurring tasks for them to complete. Keeping your board engaged with the organization is the best way to reap the benefits of their business expertise.

4. Hire a proficient grant writer. There are thousands of public and private foundation grants that your nonprofit could qualify for, but researching all of them on your own would be an infinite task. Freelance writers have the time and energy to research available grants and draft compelling proposals for each.

5. Forecast your operating budget. Overhead costs can eat through your donations quickly and if you want your donor base to remain confident about their giving, then you will need to outline a responsible budget that looks well into the future. Learn the basics of accounting software such as Quickbooks and use it everyday to track and predict your expenses.

6. Speak with a lawyer to ensure that your organization is compliant when filing its taxes. In light of recent scandals with major nonprofits, there is increased scrutiny of bookkeeping for all kinds of companies and you will pay dearly for any oversights of the law. A lawyer may take up a good chunk of your budget but knowing that your nonprofit will be in compliance with all government regulations is well worth the expense.

7. Invest in your staff. They can make or break your company so you need to hire people who are highly talented in their field and possess an array of skills. Also, be on the look out for training programs or seminars that keep your staff on top of new developments in the nonprofit field.

8. Continue to increase your donor pool by reaching out to new groups. Set up a booth at state fairs or try to secure a corporate sponsor that could increase your visibility. Creating a positive buzz around your nonprofit company might attract a population that you hadn't considered before.

Tips & Warnings

• Make sure that you are highly committed to the mission statement of the nonprofit company you are managing. You will most likely be devoting a significant portion of your life to the job without the perks that comparable jobs in the corporate world receive. Believing in the cause will keep you motivated.
• Join a professional networking club in your area. You will have the opportunity to meet new faces that might be interested in the company as well as gaining feedback from people in other industries that might inspire you.