5 Effective Non-Profit Organization Management Tips


Non-profit organization management includes several tasks such as planning, setting goals, developing strategies and fundraising. Moreover, non-profit organization management maintains compliance with state and federal laws. Carelessness in non-profit organization management invariably leads to organizational failure. However, only efficient management can help a non-profit organization achieve its goals and fulfill its responsibilities. To further help you understand non-profit organization management, some practical tips have been discussed in the following post.

Start With A Clear Vision

Clear perception about the mission and objectives of your non-profit organization makes managing it much easier. To get a better understanding of your non-profit organization’s mission, you  should define it in a single sentence. Defining the mission of the non-profit organization allows you to analyze the possible challenges ahead and devise appropriate strategies to overcome them. As a next step, you can create a concise non-profit organization management plan, specifying achievable goals. In addition, you can create to-do lists which will help you finish management tasks quicker. Include any resources and metrics needed to achieve specific goals in document footnotes. Having a clear vision about non-profit organization management responsibilities allows you to progress systematically, attaining greater success.

Maintain Legal Compliance

Legal compliance is a major part of non-profit organization management. To be considered legal, your non-profit organization must achieve state, local or federal tax exempt status. First off, you have to review the exact legal regulations that control your non-profit organization. In most cases, the non-profit organizations are governed according to Internal Revenue Service or IRS regulations. Generally, these non-profit organizations are classified as 501(c)(3). The management of non-profit organizations depend on the IRS classifications they receive. However, if your non-profit organization received non-profit status from the state, you only have to follow the state’s regulations regarding its governance. Maintaining legal compliance is necessary to determine your non-profit organization’s accounting practices and operating principles.

Keep Records

Establishing a strict record keeping system can help with non-profit organization management. By keeping accounting records, you will be able to show the donors how their donations have been utilized. This accountability will enhance your non-profit organization’s credibility, making it easier to further raise funds. Moreover, keeping records ensures that you file tax return forms or the IRS FORM 990 on time. As a result, your non-profit organization will be able to retain its tax exempt status.

Focus On Fundraising

An important goal of non-profit organization management is raising sufficient money to expand its operations. Additionally, collecting funds allows the non-profit organizations to serve its community. They raise money through donations, grants and fundraising events. This money is reinvested in non-profit programs and services. Without raising funds, a non-profit organization cannot survive. Therefore, you have to establish and maintain sources of funds. Initially, you should continue to solicit donations as a regular source of funding. Next, try to procure more significant funding through grants. Then, try lowering expenses as a form of raising funds, because the money you save will be absorbed by the non-profit programs. To this end, you can find out suppliers or vendors who will readily offer discounts on goods or services, supporting your non-profit organization. Surely, focus on fundraising is a major part of proper non-profit organization management.

List The Duties Of Board Members And Employees

Non-profit organization management depends on how well you can direct others and divide work. Assigning particular responsibilities to the board members and committee chairs will reduce your work load. As a result, you will be able to focus on core tasks and oversee operations. Additionally, you should also provide job descriptions to the staff members so that they know their duties. Dividing work will improve the functionality of your non-profit organization.

Proper management is crucial to sustainably operate your non-profit organization. Managing non-profit organizations requires the same sincerity and focus as business organizations.  Clarity of vision, flow of funds and division of work makes non-profit organization management highly effective.

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