How to Run a Nonprofit Organization
Running a nonprofit organization can be a rewarding and beneficial venture for you and your community. Whether you are addressing local community needs through public health initiatives, developing an international medical organization or starting a Colorado-based women-led outdoor nonprofit organization, these steps will help guide you through the process. According to Stephen Block, author of "Why Nonprofits Fail," the major challenges facing nonprofits include management, blurred roles between the board and workers and finances. Whether you are a seasoned executive director or starting a grassroots organization, understanding these steps and strategy will benefit the overall sustainability of your organization.
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Instructions
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Running a Nonprofit Organization
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Before you can begin to run an organization, you must have a completed business plan for your nonprofit, which includes a vision and mission statements and organizational structure. Collaborate with community members and all stakeholders to create the vision and mission statement, as including multiple parties secures long-term financial sustainability and community support.
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Include a board of directors. This includes people who have professional or life experience related to your vision and mission statements, lawyers, community leaders or financial advisors. Host meetings to include them in brainstorming and revising the mission and vision statements, financial plan and business plan.
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Secure 501(c)3 status tax-exempt status to be able to apply for and receive grant money. You must have proper documentation (business plan, details of activities, detailed financial agreements) and fill out the IRS Form 1023 within 27 months of becoming incorporated.
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Determine roles of workers and volunteers. Identify fundraisers, marketing developers, project managers, volunteer coordinators, community liaisons and bookkeepers.
For example, if you are beginning a community public health awareness nonprofit, the various tasks you will assign to each role would be different. A public educator will work with youth and schools on lecture circuits, the marketing developer will create brochures on each initiative, and a fundraiser would speak with local funders and develop corporate sponsorship. A project manager would oversee all workers, a volunteer coordinator would sign up volunteers and maintain communication with voluteers, a community liaison would oversee community relations and communications and a bookkeeper would maintain databases of activities, finances and beneficiaries.
Identifying these roles and duties for each role will alleviate cross-over and promote positive communication within the organization.
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Implement activities and initiatives. Once you begin to have a few successful endeavors, your positive impacts and proven track record will contribute to future financial and community support.
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Collaborate with other nonprofits and local organizations to get your name out there. Report your activities to the local newspaper and media sources. Celebrate successful projects and milestones.
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Track milestones and developments. This may mean counting beneficiaries (children attending programs), recording events (counting lectures given to the public schools) and keeping track of finances. You will need to report your finances as a 501(c)3 to the IRS, so be sure to maintain records and keep all associated documents.
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Tips & Warnings
Running a nonprofit organization can be incredibly inspirational and make lasting long-term impacts in your community. Be sure to include personal sustainability initiatives and communication within the organization; most nonprofits that fail do so because their workers burn out or the organization does not have and maintain strong business plans.
