5 Ways Non-Profit Organisations Can Be Financially Precise
Nonprofits are working every day to make the world a better place, to make certain that people are given a fair chance in life, and to offer the public a bit of hope. However, nonprofits often do not have the money needed to do the work that must be done. These companies work from donations, and they need to find ways to protect their bottom line. There are five steps below that will help these companies make wise financial decisions in the future.
Proper Employee Satisfaction Coverage
There is much importance given to employee satisfaction as it directly related to the turnover of the organisation. Happy employees generate happy customers. A critical illness plan for every employee ensures that the company does not grind to a halt when someone gets sick. The employee needs a critical illness insurance plan that will care for them in their absence, and the company needs a plan that will pay for a temp until the employee returns. These two policies are two sides of the same coin, and they allow the company to continue its work without wasting money it does not have. You want to know your insurance plan will handle everything until your regular employee returns to work.
Nonprofits might want to find simple ways to invest so that they can save money for the future. A nonprofit that is saving money using a hedge fund or investment plan will notice that it has extra reserve cash when needed, has security in case donations dry up, and has the flexibility to make major changes. A nonprofit might be afraid to move on with a big project if it does not have any reserve cash, and savings gained through investment are very easy to use. Every nonprofit should have some kind of financial advisor who will let the company know when their next best move is in any situation.
A nonprofit that is dedicated to opening big offices or trying to have a physical space for its employees might spend far too much money on the overhead that they cannot afford to do anything else. Because of this, these companies are often “house poor.” The company has a very nice building, but it does not have money to do anything else. A nonprofit that allows people to work remotely, that does not buy a big office building, and even avoids having a physical office at all can save a lot of money.
These very same companies might choose to rent a shared office space if they need a physical address, or the nonprofit might use one of the founder’s homes as their address. This is a very simple thing to do in most cases, and it allows the nonprofit to grow because it is not weighed down by rent every month.
Hold Big Events
Nonprofits that are trying to raise money need to have one or two big events every year that will make most of their money. This business model works quite well in the retail world where a business could go into the black when they get through Black Friday every year. If the nonprofit has a major event that brings in celebrities, big donors, and the richest people in the area, that charity is more likely to earn enough money to operate for the rest of the year.
Smaller events might be a lot of fun for the charity, but it is very hard to keep those events going if they all cost money.
A proper nonprofit has partners who exist in the corporate world. The nonprofit could have a partner in any area of the business world they like. Nonprofits could take this model from sports leagues which have official sponsors for everything. Finding a couple of partners for the nonprofit means that they get a big donation every year that could help them run specific events or pay for certain things. It all depends on what the nonprofit wants to do, and every nonprofit could approach different large corporations in their city.
Honourable Mention: Volunteering
Nonprofits often have volunteers help them with certain events, but these very same companies might hire too many people to run certain events. Allow the community to help you in any way that they can. The nonprofit will save money every time they get a member of the public to help them run an event. Plus, there are members of the community who might come into the office to help every week for a few hours. You do not need to hire extra staff if a volunteer is there to help.
There are many people who would like to make wise decisions for their nonprofits, but they do not know where to start. You can make most of these decisions on your own with a few phone calls, a little creativity, and help from the community.