Behind the scenes’ of an NPO

You come across a group of people fundraising in your neighborhood and they almost always come across as cheerful and happy lot. Makes you wonder if non-profit organizations get a free pass to fundraise and do as they please as long as it’s not for profit? Interestingly, behind the scenes of a non-profit organization the regulations and limitations are similar to any corporation.

Jamie Makan’s article “10 Things Fundraisers Won’t Say” on Smart Money talks about how government restrictions on fundraising tactics and a weak economy are making non-profits desperate and scrambling to raise money. Smaller non-profits also lose out to the larger and more established ones on being able to employ marketing strategies that cost money such as hiring a call center to solicit donations by phone.

For an NPO to be successful it must be run like a for-profit organization – only with a different focus. And to do this, their tactics and strategies mirror for-profit organizations. That being said, non-profits lack the resources and especially new and young talent that seem to automatically gravitate towards for-profit companies for jobs.

Also, with the government threatening to do away with tax breaks for charitable contributions, it looks like a bleak future for non-profits. “In any real tax-reform debate, [the charitable deduction] will be on the table,” says Mark Robyn, staff economist at the Tax Foundation.

Often having to rely on volunteers, non-profits lack the proper management that is required for them to be successful. Today, almost every non-profit organization leverages the internet to boost their fundraising goals and companies like Fundly are dedicated to helping non-profits become successful at using social media tools raise money online fast and effectively.