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Non-Profits Cannot Afford to Ignore These Business Practices

Non-Profits webinar

While not-for-profit organizations have different missions and objectives than for-profit businesses, both need the appropriate management team and operational procedures to operate and develop. Unfortunately, maintaining good business processes can be problematic in the not-for-profit sector due to funding, staffing, and management resource limitations, which prevent companies from attaining their full potential.



Through this article, you can learn about business tactics that would help build a strong foundation and structure for your non-profit organization to reach its full potential.

Management and Board Supervision

Management and its governing board must understand their roles, responsibilities, and authority. The rules, processes, and board training materials of the not-for-profit should formally reflect this knowledge. Board members need to be trained and made aware of their duties. Depending on the size of the organization and the backgrounds of its board members, the training's regularity and formality will probably change. CPA firms and other organizations offer resources and instruction on good board procedures. The training should include organization-specific topics, including the entity's programs, activities, mission and philosophy, strategy, finances, and the board's relationships with the organization and its employees.

Management of Finance and Cash Flow

For any firm, having strong finances is essential. The majority of not-for-profit organizations create annual budgets, but many fail to take into account setting up operating reserves or keeping track of and anticipating unrestricted net assets and cash flows. A formal operational reserve policy that outlines guidelines for how and when the reserves can be used as well as how they are funded should exist and be authorized by the board.

Implementing Technology

Investment in IT ought to be included in the overall strategy. For not-for-profit organizations, there are numerous options for systems and software, including cloud-based resources, in areas including general accounting, donor administration, record retention, and management reporting. Monthly-fee subscriptions could offer hosting, better functionality at a reduced price, and little IT support. The market for cloud-based services has improved in recent years, offering higher quality at significantly lower prices. In addition, many cloud service providers give discounts to not-for-profit organizations.

Adhering to these above-mentioned business tactics would undoubtedly help your non-profit organization be structurally sound with a solid foundation. However, to develop a value proposition and new revenue sources, leadership must be able to view a not-for-profit company differently.

Spotlight

Televerde Foundation

Televerde Foundation is a 501(c)(3) nonprofit organization that provides “a path forward” to currently and formerly incarcerated women. Televerde Foundation’s mission is to help currently and formerly incarcerated women join and successfully grow within the global workforce. Through its PATHS reentry programming, the Foundation provides training, education, and personal and professional development programs that enable participants to develop the skills necessary for a meaningful and rewarding career and successful community reintegration. Televerde Foundation’s vision is a world with equal opportunities for all to be successful in the global workforce. The Foundation is built around its core values to: Empower Others, Be Accountable, Pay It Forward, Courageously Improve and Develop Resiliency.

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Read More

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