Many non-profit organizations are so busy with the day to day work of running the business that cohesive marketing and other necessary strategies fall through the cracks.
Understandably this happens thanks to practical considerations such as only so much funding – time – energy – staff – hours in the day, etc.
Let’s get one thing straight from the get – go:
Your non-profit is a mission and cause driven business. Just because it is not for personal gain doesn’t mean it’s not a business. It most definitely is.
What makes a Non-Profit a Business:
Your non-profit is registered as a legal business entity – for example, a 501(c)(3) here in the U.S., just like a corporation or LLC.
Your non-profit has a mission driven goal, not a personal profit driven goal, and is accountable to the public, as well as to your donors and sponsors. Public accountability is key.
Your non-profit has employees, systems, a budget, and customers – otherwise known as beneficiaries, supporters, sponsors and donors.
Your non-profit generates revenue through donations, grants, program fees, merchandise, etc. This revenue – after expenses – is reinvested back into the non-profit entity, never distributed as profit. This profit distribution differs from a for-profit business.
Your non-profit is required to follow strict financial reporting, standards, and compliance requirements, just like for-profit businesses.
Your non-profit absolutely needs to follow a business structured framework of strategy, planning and management. Components of these are a business plan, marketing, staff management, and financial controls — all hallmarks of a well-run business.
A successful non-profit needs to be run with a strong business discipline, but always with a focus on the cause, which is not for personal gain.
While the mission is the heart of a non-profit, its sustainability, efficiency, and ability to create impact depends heavily on innovative, powerful business practices.
Without an effective strategy, responsible business framework and backbone, your non-profit will always fall short of reaching its true potential. Make it the best that it can be.