How To Get Your Small Nonprofit Started

Nonprofit corporations comprise one of the fastest-growing sectors of the economy today. With more people than ever concerned about the well-being of society and the environment, nonprofits have surged in popularity over the past few years. Many people believe that starting a nonprofit is easy, but there are several steps that must take place before a nonprofit will be successful.

Pick A Cause And Stick To It

Many nonprofits fail simply because they cannot choose one cause to support. Although this may not seem like a big problem, securing funding from donors can be difficult and confusing when there are multiple causes supported that are unrelated. In addition, it will be much easier around tax time for nonprofit corporations that have one mission for their existence.

Secure Funding

Lack of financing is one of the biggest reasons that nonprofit corporations fail in the marketplace today. Nonprofits do not function to make a profit, but they do require money in order to continue to function and serve the need they see in society. Many people do not realize just how important having solid donors commit to a nonprofit early on in the process are. People that donate money want to know that the organization will be around in several years, and the more solid the financial foundation of the nonprofit the more donors will be willing to donate.

Build A Solid Team

Nonprofits are notorious for team members that move around a lot. Due to the nature of the business, some of this movement can be expected. However, nonprofits should take employee morale in to consideration when making policies and creating culture in their company. The more stable the team is for the nonprofit, the more effective and efficient the team will be with the resources.

Eliminate Extras

Finally, any nonprofit can benefit from eliminating extra expenditures from their budget. Many donors want to know how much of each dollar goes to the actual cause they are supporting, and by reducing overhead this ratio can improve. The more money that can pour in to the cause rather than the organization, the more positive change can happen in the world.

Overall, nonprofits do not function to solely make money but must function as a well-run company with a solid financial plan in order to stay in business. Having a solid cause and financial footing will help to secure donors in the future. In addition, keeping proper accounting records will help nonprofits stay out of trouble when taxes must be filed.

About the Author: is a freelance writer living in Boston, MA. She writes most often on small business and education. Information used in this article was provided by Lana Huang, a business consultant with a Master’s in Public Administration, who works with nonprofit startups to improve their structure and direction.

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