Top Seven Ways to Make Sure Your Non-Profit Succeeds

Of course you want your non-profit organization to thrive and expand. The more money that comes in, the more ways you can help and the closer you are to achieving your mission. So why do so many charities struggle with their very existence hanging in the balance?

I found an interesting article on MeasuredOutcomes.net entitled “Top Seven Reasons Why Non-Profits Fail – and How to Avoid Them.” If you are a new non-profit, once you know what pitfalls can trip you up, you’ll know how to avoid them.

1)     Poor Management – Many small beginner charities see the cause but don’t really comprehend how they are going to get from Point A to Point B. The leadership lacks business acumen, management experience or accounting skills. You also need to be able to read people as you assemble a group of savvy, underpaid workers who have the same passion and dedication as you do.

2)     Insufficient Capital – For some reaso, many people tend to underestimate their costs and overestimate the donations when first starting a non-profit. They can’t comprehend that everyone doesn’t feel as generous and compassionate about their cause. Even in a small for profit business, it is said that it will take four to sixth months to start making money.

3)     Diversification of Funding – “it is vitally important to have a diversified portfolio of funding in order to weather market downturns. Many nonprofits establish establish relationships with a limited number of funder, or funders in a particular sector of the economy.

“This can be disastrous when, for example, the bank that has been a major funder of your organization is acquired by another institution and decides that you are no longer a priority area. Just like in the stock market, it’s important to have a well balanced funder portfolio that touches many different areas of the broader economy.”

4)     Location, location, location – Here are some factors to consider: where are your clients located? Are there other agencies with a similar cause nearby? Is there ample parking and is it easy to find? Is the building in good shape or does it look like a lost cause? There are a ton of factors to consider before signing your name on the dotted line.

5)     Lack of Planning – This can be tied into the first point. A good manager plans ahead and counts the cost. How many employees will you need? How will you market your organization? Who is the competition and how great is the need?

6)     Overexpansion – I can’t help but think of Starbucks a few years ago. All of a sudden it seemed like the black and green circular logo popped up on every city block. Overexpansion put a limp in their company, but it could be the silver bullet in a smaller sized one.

“A leading cause of nonprofit failure, overexpansion often happens when managers confuse program success with how fast they can expand their services. A focus on slow and steady growth is optimum. Many a bankruptcy has been caused by rapidly expanding organizations that drift into areas that are outside their core mission.”

7)     No Website – The internet is one of the fastest and most cost effective ways to spread the word about your agency, keep donors updated, and increase your funding. Also, online giving is one of the fastest, easiest ways to increase your bank account.

Being a leader of a non-profit organization means that you are probably the hardest working, most underpaid professional that you know of. However, you are probably one of the most fulfilled and excited people, too. Through keeping these tips in mind, you can stay on the path to success to truly make a difference.

At Fundly, we understand that you would prefer to do the things you love doing the most and that fundraising does not need to be difficult. This is reason why we have developed and continually innovate on our easy to use online fundraising tools that will help your non-profit raise the funds you need for operations and projects. Learn more at Fundly today.