Whether you’re raising money for your own non-profit organization or another charity, there are several creative ways to host a fundraiser. Instead of holding a regular gala or dinner, think outside the box and come up with something that’ll delight and thrill your guests.

To get you started, we’ve come up with six unique fundraising ideas we’re sure you haven’t tried yet.

1. Themed and custom accessories

Many fundraisers involve selling unique branded clothing items like shirts, jackets, or caps. Why not get creative and sell custom themed accessories instead?

Imagine having a custom Elite Sport Socks Fundraiser, inviting people to buy footwear featuring their favorite team. You can even host a themed event, allowing attendees to dress up in support of whatever game they love.

Alternatively, opt for a wacky and quirky theme. Sell custom scarves, strange ties, or colorful gloves. The sillier, the better.

Turn the entire thing into a dress-up event and give out small prizes to those attendees who end up looking the strangest. The more tie-dye scarves and pizza-printed leg warmers they’re wearing, the better. Not only will people donate a little extra to get more goodies, but they’ll also have a good laugh while doing it.

Remember, fundraisers don’t need to be serious and glamourous galas. There’s nothing wrong with laughing all the way to the donation box.

2. Scavenger hunts

A scavenger hunt is an exciting activity on its own. However, it’s also a great way to raise money for a cause or charity. The cost of setting one up is generally very cheap, and you don’t need to give out expensive prizes to make the game worthwhile.

Make things interesting by setting up a hunt across the city. You can charge teams a small entry fee, with all the profits going towards the chosen cause. That way, participants will be making donations while having a great time.

To liven things up a little, create donation tiers. When someone donates a certain amount, they can choose an outfit for their team or challenge another group to dress in a certain way. There are various ways you can spice up fundraisers this way.

That said, don’t add any tiers that would ruin the fun for everyone. For example, not all donors will be able to give large amounts of funds. Giving out extra clues for high donations takes a lot of fun out of the game. Instead, make the tiers fun and rewarding rather than essentially offering “cheats.”

3. Escape rooms

Escape rooms have become incredibly popular in recent years. After entrepreneur Victor van Doorn started Sherlocked, these puzzle games have spread across the world. There are now 15 of them, and they thrill and delight players with hours of adventurous fun.

Interestingly, van Doorn claims that it’s not all that difficult to create your own escape rooms. All it takes is a love of puzzles and a little out of the box thinking. Having a good story helps, of course, as would a cause.

Have attendees pay a small fee to enjoy an escape room at your fundraiser. You could even have more than one and allow donors to pick and choose which stories and puzzles they’d like to try. 

Not only is it a very creative way to raise funds, but you don’t need to spend a lot of money to create a thrilling experience. Everyday items can be used to set up the puzzles. In fact, you can use anything from a YouTube mystery music playlist to locked USB drives to build a fun narrative.

4. Video Game Tournament

Video games used to be something you enjoyed now and then, lounging on the floor in front of the living room television. Today, it’s a massive global industry with tournaments, sponsorships, and multi-million dollar prizes.

Gaming is a widespread hobby, and over 2 billion people enjoy playing video games in some form. Holding a tournament could be a fantastic way to raise money for your organization.

Charge an entry fee, and offer a few good prizes for people who place at the top. Various games would be great for an evening like this.

Pit racers against each other in Mario Kart and have the crowd cheer them on. Alternatively, throw everyone into a Fortnite Battle Royale and see who’s the last man or woman standing. Hearthstone is another excellent option, and the learning curve isn’t too steep.

You could even dig up a few older games to make attendees feel nostalgic if you’re catering to an older group.

5. Non-event fundraisers

Some high-profile non-profit organizations have sizable advertising budgets and spend small fortunes on their fundraising events and galas. Instead of organizing a party to raise money for a charity, have a non-event.

When you send out the “invitations,” let people know what they won’t be getting for their money. For example, make a note of how a $30 donation will go directly to your chosen charity rather than towards a gala dinner.

These types of “events” add a refreshing level of transparency and honesty to charity fundraising. Your donors might even be inclined to donate more, knowing that their money won’t be spent frivolously.

6. Remote and virtual fundraisers

Virtual fundraisers are nothing new. Many popular YouTubers have used the platform to raise hundreds of thousands of dollars for various charitable organizations. For example, well-known let’s player, Jacksepticeye, raised $659,000 in a single stream for various relief funds as part of the #HopefromHome online event.

A remote virtual fundraiser can be big or small. You can host a simple stream and with a donation link or create an interactive online bash. Either way, the steps are relatively similar to organizing a regular event.

You’ll need to choose a platform, like Zoom or YouTube, find speakers or performers, send out invitations and decide how to accept donations. There are several online software providers to receive payments from which to choose.

Whether you want to host an action, do a presentation, or enjoy a trivia challenge, your options for a remote fundraiser are almost endless.

Final word

Despite common opinion, fundraisers don’t have to be boring, standard, or follow strict rules. There’s nothing wrong with hosting a fun, creative, and out of the box event to raise money for your organization or a charity.

Sell silly customized accessories like socks, gloves, and leg warmers, and tack on an event to make things a little more interesting. Organize a scavenger hunt, or thrill your donors by hosting a series of escape rooms and stories for them to figure out.

Keep in mind that people want to donate to causes and charities, but they also want to feel like their money is being spent responsibly. Skip the event altogether, and show your non-guests how their donations can truly help.

Whether you choose to host a tournament or party, don’t be afraid to think outside the box. Just because they’re donating to a good cause, it doesn’t mean your donors don’t want to have fun while doing it.

Nonprofit partnerships are widespread in the corporate world because they enable businesses and enterprises to join forces with a philanthropic outlet to improve their public profile and the community simultaneously. Workplace giving raises more than $5 billion annually, according to Nonprofits Source.

As an organization that runs on donations, it’s logical for a nonprofit to want a piece of that giving. That said, there are times when it’s essential to look more critically at a gift.

Avoid the “devil” in the details

Similar to Descartes’ “evil demon” argument, there’s the concept of “demon donors” in the nonprofit world. These are people who want to elevate their brand by donating money linked to practices that conflict with a nonprofit’s stated mission. Demon donors are in it for the positive publicity rather than the greater good.

Nonprofits have to make tough decisions regarding demon donors, and they can face public backlash if they partner with the wrong people. Donations are a vital measurement of a nonprofit’s success, but money shouldn’t outrank the desire — and need — to stay closely tied to your goals and mission statements.

It can be tough to discern the nature of every single donation, though. Sometimes, donors have motives and intentions unrelated to serving the greater good. As a nonprofit leader, it’s essential to evaluate each contribution to ensure it’s made in good faith and not with any strings attached.

Being a new nonprofit is exciting — and challenging

Established nonprofits may be comfortable turning down donations that don’t mesh with their values and mission, but that’s a more challenging task for newer organizations. These fledgling groups likely don’t have a deep donor pool, and a choice to reject one donation could have ripple effects for all operations across the board.

New nonprofits face unique issues that can make it more challenging to collect donations and build a roster of reliable donors. Those barriers include:

Miscalculating financial needs 

Many new nonprofits find themselves underestimating how much capital is needed to complete a project and then discover that the donation won’t cover the initiative’s expenses. Poor implementation or project processing can lead to an organization not having the funds or volunteers necessary to see things through. This lack of funds can prevent nonprofits from getting more volunteers and widening their reach.

Collecting gifts from certain sources

Another area that less-established nonprofits should focus on is the methods of the contributions themselves. These organizations are generally better at reserving and spending donations to meet their goals when they have a balance.

It can be tough to determine the right mix of donation streams, but focusing your organization’s efforts on not underdoing or overdoing donation sources can help ensure that you have the funds to reach your goals.

Lacking the necessary credibility

While most people are inclined to support a cause they believe in, they’re careful about where they choose to donate. Hardly anyone will give their hard-earned money to an organization without conducting thorough research or consulting peers. If your nonprofit doesn’t come up in potential donors’ research or conversations, you aren’t likely to see their money hit your organization’s bank account.

Additionally, building a strong foundation comes from encouraging donors to give repeatedly rather than just once. That comes from providing your donors with a return on their investments.

In other words, your nonprofit needs to provide donors with some value in exchange for their continued support.

Deciding on donations

Not every gift is what it appears to be on the surface, so it’s essential to ensure that the ones you take are in lockstep with your nonprofit’s big-picture values and objectives.

Here are four ways nonprofit leaders can ensure the donations they accept are on the up and up:

1. Stay laser-focused on your mission statement 

The world changes around us pretty rapidly. It’s easy for the need that your nonprofit addresses to evolve into something different, meaning that you have to make difficult decisions about which goals to retain and which ones to set aside.

Organizations with this level of focus decline opportunities that don’t align with their goals, choosing instead to take on challenges that can move their nonprofits forward. This is easier said than done when it comes to runway cash, but successful nonprofits are used to making difficult decisions.

2. Consider instituting ‘know your donor’ obligations

This approach can help your potential donors understand your mission and values. It will also allow your organization to accept donations only from those that are in alignment with your nonprofit.

While you can’t ensure that gifts from misaligned donors are never accepted, your organization can still make a difference by educating donors and helping them change their behaviors. In the future, you’ll set a standard that all potential donors must hit.

3. Find a nonprofit to model your organization after

Similar organizations can provide an example for your group to follow and open the door for collaboration. Look to those outfits to help build the blueprint for your donation process.

To go a step further, networking with the leaders of these organizations might provide you with better processes and guidelines for auditing donations. To bring your approach into focus, find ways to pick the brains of other organizations — directly and indirectly.

4. Figure out whether donors view you as a vendor or a partner 

While your donors likely have some valuable insights that can help your organization grow on a larger scale, some donors have other goals in mind. Occasionally, donors are searching for help completing a particular project and accomplishing their intentions rather than looking for a partner organization.

These “pay to play” donors can be tempting, but they might take you away from working toward your nonprofit’s vision. It can be difficult to grow these relationships because the “partner” for your nonprofit isn’t invested in your organization’s mission and goals — and isn’t likely to be a repeat donor.

Many nonprofits have adopted an approach that allows donors to decide how the funds they provide are used. While your organization may be reliant on gifts, you have the power to ensure that those donations contribute to your nonprofit’s mission — not anyone else’s.

Find success with donors that align with your mission

Nonprofits are built with a vision and value in mind. Neither should be compromised for the sake of a sizable donation. Making an early commitment to only seeking out gifts from ethical donors establishes those standards early and helps build the blueprint needed for nonprofits to achieve long-term success.

If you want to make a lasting impact, remember that it’s rare to do so single-handedly, and partnering with for-profit businesses becomes an essential component to achieving more than just fundraising goals. Even a single partnership with a small local business can provide a nonprofit with shrewd insights it might otherwise go without.

Of course, approaching businesses about a possible partnership can be a struggle — especially for organizations new to the nonprofit space. But it’s not impossible, you just need the right strategy.

Weighing your partnership options

It’s sometimes difficult for a nonprofit’s development team to determine exactly how a business partnership might fit with the overall strategy (beyond the potential to raise funds, of course).

If you were a coach, you’d want to play to each team member’s strengths. Sometimes, these strengths aren’t always apparent, and it takes time and a keen eye to scout out how a business might be an asset to your charitable organization. Perhaps even more important, though, is determining how your nonprofit can be of help to your array of potential business partners.

Recent research found that a business’s charitable giving affects 73% of consumer purchase decisions, so that’s one angle to take when pitching business partnerships with nonprofits. Not to mention 50% of consumers say they’d switch to a brand that supports causes they align with. There’s another angle to approach with.

Even then, however, it can be difficult to find businesses willing to contribute to your mission. When it comes to business partnerships with nonprofits, there has to be a commonality between both parties to move past the ask and develop an actual relationship. 

The question then is: How exactly do nonprofit and for-profit businesses meet in the middle?

Development Ideas for Nonprofits

Even though you’ll have to do some legwork up front, it’s possible to find like-minded businesses in your area that want to start partnerships and contribute to your cause in some way. After all, most businesses these days seek out more ways to contribute to their local communities.

As a general rule of thumb, consider the following tips to determine where you should focus your efforts first:

1. Identify businesses with shared values 

Any business practicing social responsibility commits to a select few social, cultural, or environmental issues, and these are often based on its core values. If these values align with the core mission of your nonprofit, you’re more likely to reap positive results.

Research small to midsize businesses in your area. Chances are good they haven’t been approached by other nonprofits. You can glean a lot of information from their websites: About pages will usually contain information about their mission, values, and past philanthropic activities, and team pages should give you some idea of who to talk to.

2. Communicate clear win-wins

Partnerships should always be mutually beneficial, and that’s still true when it comes to business-nonprofit partnerships. Besides detailing how your organization makes a direct impact on the local community, highlight what a partnership could mean for the businesses you’d like to work with.

Remember that one of the main benefits of partnering with a nonprofit is marketing. A purpose-driven business does have a competitive advantage because more and more people now buy goods and services from businesses that reflect their values.

Yet another benefit of partnering with a nonprofit is how that partnership can support employee retention and recruitment efforts. Most people prefer to work for companies that share their values; in fact, 87% of people rate the pride they have in their workplaces as very important, and 46% value a company’s ability to impact society positively.

In other words, emphasize the mutual benefits for both parties and share how your nonprofit supports its supporters. Is it through employee volunteer opportunities? Improved business visibility? Partnerships can certainly strengthen a business’s reputation, so there’s always that.

3. Don’t focus on the money

Many nonprofits enter partnership conversations with a dollar amount in mind — but that’s not the first topic you should bring to the table. Instead, direct the conversation toward other benefits of partnering with a nonprofit.

Consider for a second that 66% of employees expect ongoing training to help them get better at their jobs. Maybe you could position a potential partnership as an opportunity for a business’s employees to develop new skills. That’s certainly a value-add for any organization.

Because most small to midsize businesses serve the same community as nonprofits, it’s also important to position how a partnership could strengthen both your efforts to benefit a specific demographic or cause. 

Let’s consider my local RE/MAX as an example: With the rise of COVID-19, it directed its philanthropic efforts to benefit first responders. Our organization could’ve easily just written a check, but we also discussed other opportunities to participate in that initiative — be it in marketing, social media, and so on.

Long story short, your partnership pitch should include more than a fundraising goal. At least during the initial conversations, hone in on community engagement, volunteerism, and other value-adds before you tackle the big ask.

4. Check-in regularly 

Securing a partnership is definitely something to celebrate, but your work is far from over. Just as much time and effort should be devoted to maintaining your relationships. To ensure a successful partnership, touch base regularly.

Share what a company’s funds or volunteerism are doing for the community. Highlight success stories, acknowledge its contributions and provide at least some proof of return on investment. Many businesses will even ask for documentation or proof of impact, as they want an idea of the partnership’s outcomes to quantify the return on investment.

Come prepared with data, such as how much exposure the business received during a campaign. This could be in the form of likes, shares, and reach on a social media post that the business-sponsored for a charity event.

Using your business plan to secure partnerships

Establishing your first partnership can feel somewhat intimidating. You’re working with an established business, so the natural reaction is to look for more ways to prove your worth. If that’s really a concern, one simple way to do so is to come prepared with a business plan.

While the idea of business planning reads like a for-profit organizational term, having one for your nonprofit is absolutely vital for long-term success. It helps define your mission for potential partners, provides an outline of strategic and financial efforts, and displays a trackable understanding of how to effectively manage cash flow to accomplish organizational goals. 

Having all of these elements prepared and presentable can make partnering with your nonprofit an easy decision. And just remember that these partners share your goals and mission — they want to see your nonprofit succeed just as much as you do. Start with these tips, roll them into your business plan, and you’ll surely be on your way toward sparking long-lasting, mutually beneficial partnerships.

Believe it or not, creating a business plan for a nonprofit organization is not that different from planning for a traditional business. 

Nonprofits sometimes shy away from using the words “business planning,” preferring to use terms like “strategic plan” or “operating plan.” But, the fact is that preparing a plan for a for-profit business and a nonprofit organization are actually pretty similar processes. Both types of organizations need to create forecasts for revenue and plan how they’re going to spend the money they bring in. They also need to manage their cash and ensure that they can stay solvent to accomplish their goals.

In this guide, I’ll explain how to create a plan for your organization that will impress your board of directors, facilitate fundraising, and ensures that you deliver on your mission.

Why does a nonprofit need a business plan?

Good business planning is about setting goals, getting everyone on the same page, tracking performance metrics, and improving over time. Even when your goal isn’t to increase profits, you still need to be able to run a fiscally healthy organization.

Business planning creates an opportunity to examine the heart of your mission, the financing you’ll need to bring that mission to fruition, and your plan to sustain your operations into the future.

Nonprofits are also responsible for meeting regularly with a board of directors and reporting on your organization’s finances is a critical part of that meeting. As part of your regular financial review with the board, you can compare your actual results to your financial forecast in your business plan. Are you meeting fundraising goals and keeping spending on track? Is the financial position of the organization where you wanted it to be?

In addition to internal use, a solid business plan can help you court major donors who will be interested in having a deeper understanding of how your organization works and your fiscal health and accountability. And you’ll definitely need a formal business plan if you intend to seek outside funding for capital expenses—it’s required by lenders.

Creating a business plan for your organization is a great way to get your management team or board to connect over your vision, goals, and trajectory. Even just going through the planning process with your colleagues will help you take a step back and get some high-level perspective.

A nonprofit business plan outline

Keep in mind that developing a business plan is an ongoing process. It isn’t about just writing a physical document that is static, but a continually evolving strategy and action plan as your organization progresses over time. It’s essential that you run regular plan review meetings to track your progress against your plan. For most nonprofits, this will coincide with regular reports and meetings with the board of directors.

A nonprofit business plan will include many of the same sections of a standard business plan outline. If you’d like to start simple, you can download our free business plan template as a Word document, and adjust it according to the nonprofit plan outline below.

Executive summary

The executive summary of a nonprofit business plan is typically the first section of the plan to be read, but the last to be written. That’s because this section is a general overview of everything else in the business plan – the overall snapshot of what your vision is for the organization.

Write it as though you might share with a prospective donor, or someone unfamiliar with your organization: avoid internal jargon or acronyms, and write it so that someone who has never heard of you would understand what you’re doing.

Your executive summary should provide a very brief overview of your organization’s mission. It should describe who you serve, how you provide the services that you offer, and how you fundraise. 

If you are putting together a plan to share with potential donors, you should include an overview of what you are asking for and how you intend to use the funds raised.

Opportunity

Start this section of your nonprofit plan by describing the problem that you are solving for your clients or your community at large. Then say how your organization solves the problem.

A great way to present your opportunity is with a positioning statement. Here’s a formula you can use to define your positioning:

For [target market description] who [target market need], [this product] [how it meets the need]. Unlike [key competition], it [most important distinguishing feature].

And here’s an example of a positioning statement using the formula:

For children, ages five to 12 (target market) who are struggling with reading (their need), Tutors Changing Lives (your organization or program name) helps them get up to grade-level reading through a once a week class (your solution).

Unlike the school district’s general after-school homework lab (your state-funded competition), our program specifically helps children learn to read within six months (how you’re different).

Your organization is special or you wouldn’t spend so much time devoted to it. Layout some of the nuts and bolts about what makes it great in this opening section of your business plan. Your nonprofit probably changes lives, changes your community, or maybe even changes the world. Explain how it does this.

This is where you really go into detail about the programs you’re offering. You’ll want to describe how many people you serve and how you serve them.

Target audience

In a for-profit business plan, this section would be used to define your target market. For nonprofit organizations, it’s basically the same thing but framed as who you’re serving with your organization. Who benefits from your services?

Not all organizations have clients that they serve directly, so you might exclude this section if that’s the case. For example, an environmental preservation organization might have a goal of acquiring land to preserve natural habitats. The organization isn’t directly serving individual groups of people and is instead trying to benefit the environment as a whole. 

Similar organizations

Everyone has competition—nonprofits, too. You’re competing with other nonprofits for donor attention and support, and you’re competing with other organizations serving your target population. Even if your program is the only one in your area providing a specific service, you still have competition.

Think about what your prospective clients were doing about their problem (the one your organization is solving) before you came on this scene. If you’re running an after-school tutoring organization, you might be competing with after school sports programs for clients. Even though your organizations have fundamentally different missions.

For many nonprofit organizations, competing for funding is an important issue. You’ll want to use this section of your plan to explain who donors would choose your organization instead of similar organizations for their donations.

Future services and programs

If you’re running a regional nonprofit, do you want to be national in five years? If you’re currently serving children ages two to four, do you want to expand to ages five to 12? Use this section to talk about your long-term goals. 

Just like a traditional business, you’ll benefit by laying out a long-term plan. Not only does it help guide your nonprofit, but it also provides a roadmap for the board as well as potential investors. 

Promotion and outreach strategies

In a for-profit business plan, this section would be about marketing and sales strategies. For nonprofits, you’re going to talk about how you’re going to reach your target client population.

You’ll probably do some combination of:

• Advertising: print and direct mail, television, radio, and so on.
• Public relations: press releases, activities to promote brand awareness, and so on.
• Digital marketing: website, email, blog, social media, and so on.

Similar to the “target audience” section above, you may remove this section if you don’t promote your organization to clients and others who use your services.

Costs and fees

Instead of including a pricing section, a nonprofit business plan should include a costs or fees section.

Talk about how your program is funded, and whether the costs your clients pay are the same for everyone, or based on income level, or something else. If your clients pay less for your service than it costs to run the program, how will you make up the difference?

If you don’t charge for your services and programs, you can state that here or remove this section.

Fundraising sources

Fundraising is critical for most nonprofit organizations. This portion of your business plan will detail who your key fundraising sources are. 

Similar to understanding who your target audience for your services is, you’ll also want to know who your target market is for fundraising. Who are your supporters? What kind of person donates to your organization? Creating a “donor persona” could be a useful exercise to help you reflect on this subject and streamline your fundraising approach. 

You’ll also want to define different tiers of prospective donors and how you plan on connecting with them. You’re probably going to include information about your annual giving program (usually lower-tier donors) and your major gifts program (folks who give larger amounts).

If you’re a private school, for example, you might think of your main target market as alumni who graduated during a certain year, at a certain income level. If you’re building a bequest program to build your endowment, your target market might be a specific population with interest in your cause who is at retirement age.

Do some research. The key here is not to report your target donors as everyone in a 3,000-mile radius with a wallet. The more specific you can be about your prospective donors—their demographics, income level, and interests, the more targeted (and less costly) your outreach can be.

Fundraising activities

How will you reach your donors with your message? Use this section of your business plan to explain how you will market your organization to potential donors and generate revenue.

You might use a combination of direct mail, advertising, and fundraising events. Detail the key activities and programs that you’ll use to reach your donors and raise money.

Strategic alliances and partnerships

Use this section to talk about how you’ll work with other organizations. Maybe you need to use a room in the local public library to run your program for the first year. Maybe your organization provides mental health counselors in local schools, so you partner with your school district.

In some instances, you might also be relying on public health programs like Medicaid to fund your program costs. Mention all those strategic partnerships here, especially if your program would have trouble existing without the partnership.

Milestones and metrics

Without milestones and metrics for your nonprofit, it will be more difficult to execute on your mission. Milestones and metrics are guideposts along the way that are indicators that your program is working and that your organization is healthy.

They might include elements of your fundraising goals—like monthly or quarterly donation goals, or it might be more about your participation metrics. Since most nonprofits working with foundations for grants do complex reporting on some of these, don’t feel like you have to re-write every single goal and metric for your organization here. Think about your bigger goals, and if you need to, include more information in your business plan’s appendix.

If you’re revisiting your plan on a monthly basis, and we recommend that you do, the items here might speak directly to the questions you know your board will ask in your monthly trustee meeting. The point is to avoid surprises by having eyes on your organization’s performance. Having these goals, and being able to change course if you’re not meeting them, will help your organization avoid falling into a budget deficit.

Key assumptions and risks

Your nonprofit exists to serve a particular population or cause. Before you designed your key programs or services, you probably did some research to validate that there’s a need for what you’re offering.

But you probably are also taking some calculated risks. In this section, talk about the unknowns for your organization. If you name them, you can address them.

For example, if you think there’s a need for a children’s literacy program, maybe you surveyed teachers or parents in your area to verify the need. But because you haven’t launched the program yet, one of your unknowns might be whether the kids will actually show up.

Management team and company

Who is going to be involved and what are their duties? What do these individuals bring to the table?

Include both the management team of the day-to-day aspects of your nonprofit as well as board members and mention those who may overlap between the two roles. Highlight their qualifications: titles, degrees, relevant past accomplishments, and designated responsibilities should be included in this section. It adds a personal touch to mention team members who are especially qualified because they’re close to the cause or have special first-hand experience with or knowledge of the population you’re serving.

There are probably some amazing, dedicated people with stellar qualifications on your team—this is the place to feature them (and don’t forget to include yourself!).

Financial plan

The financial plan is essential to any organization that’s seeking funding, but also incredibly useful internally to keep track of what you’ve done so far financially and where you’d like to see the organization go in the future.

The financial section of your business plan should include a long-term budget and cash flow statement with a three to five-year forecast. This will allow you to see that the organization has its basic financial needs covered. Any nonprofit has its standard level of funding required to stay operational, so it’s essential to make sure your organization will consistently maintain at least that much in the coffers.

From that point, it’s all about future planning: If you exceed your fundraising goals, what will be done with the surplus? What will you do if you don’t meet your fundraising goals? Are you accounting for appropriate amounts going to payroll and administrative costs over time? Thinking through a forecast of your financial plan over the next several years will help ensure that your organization is sustainable.

Money management skills are just as important in a nonprofit as they are in a for-profit business. Knowing the financial details of your organization is incredibly important in a world where the public is ranking the credibility of charities based on what percentage of donations makes it to the programs and services. As a nonprofit, people are interested in the details of how money is being dispersed within organizations, with this information often being posted online on sites like Charity Navigator, so the public can make informed decisions about donating.

Potential contributors will do their research—so make sure you do too. No matter who your donors are, they will want to know they can trust your organization with their money. A robust financial plan is a solid foundation for reference that your nonprofit is on the right track.

Business planning is ongoing

It’s important to remember that a business plan doesn’t have to be set in stone. It acts as a roadmap, something that you can come back to as a guide, then revise and edit to suit your purpose at a given time.

I recommend that you review your financial plan once a month to see if your organization is on track, and then revise your plan as necessary.

Additional Help

Our free business plan template can help you work through each section of your plan. Also, be sure to check out a complete nonprofit business plan example for reference. 

If you’re looking for a tool to help you write your business plan, you may want to check out LivePlan. It can easily be configured to create a nonprofit business plan with step-by-step guidance throughout the process. You’ll be able to easily develop forecasts and compare to your actuals through a single dashboard to actively plan, adjust, and present to investors and board members. It’s a great option to keep business planning simple so you can focus on serving those that you’re hoping to help.

Editor’s note: This article was originally published in 2014. It was updated in 2021.

Nonprofit leadership is struggling. More than 80 percent of nonprofits have management issues, and only 11 percent are prepared for growth. That’s why leadership development is so important.

The problem is an old, hierarchical approach to leadership—one adopted from the for-profit sector. This top-down leadership style is based on one person controlling direct reports, but it’s no longer effective.

It’s time to move to a mission-driven nonprofit leadership approach that creates engagement, encourages commitment, and isn’t based on control or even authority. This leadership style is collaborative and involves a role reversal between leaders and team members: teams make most of the decisions, and leaders facilitate those teams so they make the best decisions possible.

In this situation, teams take ownership of their outcomes: their goals and metrics. But to make this happen, leaders and nonleaders alike must know how to build high-performing teams. The result is more egalitarian, engaged teams that accomplish their goals.

Why Is Leadership Development Important for Nonprofits?

Nonprofits have an opportunity to offer a distinctly different work environment than their for-profit counterparts. For-profit cultures are often based on competition and power-based models, but nonprofit management and leadership don’t need to mimic that. Nonprofits can shift to a cooperative power model that offers a culture of success instead of one of failure.

Why is leadership development important? Culture is critical in nonprofits. In a culture of success, people are engaged and actively learning and experimenting. They are set up to succeed, but they feel challenged, motivated, and supported. And they produce—because being productive feels good, and working with others to achieve something that feels important is deeply satisfying. That’s the mark of a successful (and growing) nonprofit organization.

Employees don’t want to be motivated; they want nonprofit leaders to engage them in meaningful tasks while allowing them to experience growth. That doesn’t happen with the old directive-style leadership. When leaders have the skills to create high-performing teams regardless of the individual members, then they really have something.

In a collaborative environment, leadership needs to promote collaborative skills: facilitation, coaching, mentoring, influencing, negotiating, selling, etc. You’ll notice ideas such as delegating, budgeting, organizing, motivating, and evaluating are not on the list—that’s because those skills have value in the old hierarchical operating system. Leaders need to be able to get things done without authority or any attempts to control other people.

How to Empower Others to Lead Through Collaboration

Shifting to a culture of success begins at the top, with managing directors and their direct reports. They need to shift out of the hierarchical way of leading and learn to lead collaboratively. These three strategies will help you move from directive to collaborative leadership.

1. Set a goal for creating a culture of success

What makes growing a nonprofit organization possible? A strong vision of the organization, a solid business plan (or strategic plan),  and a culture of success to fulfill that vision. This will require reflecting on your existing culture.

Culture is critical to the success of nonprofits, so be brutally honest about the gap between what is and what should be. Once you’ve taken stock of the situation, make sure your leadership development efforts support a culture of success rather than one of failure.

Do your employees feel that they’re set up to be successful, or do they feel defeated before they even start? Is it acceptable for team members to turn down additional work? Are most initiatives you start successes or failures?

Come up with a strategy for shifting the organization so you can reach your vision. Just as you create a strategy for achieving your mission through your strategic plan, you need a plan for how the team members are going to support each other in working toward these goals. It might help to complete a vision session that explores how you want the organization to operate, using the approach described in my next point.

2. Train leaders to practice collaborative leadership

Nonprofit management and leadership personnel are accountable for the organization and are key models for leadership behavior, so change must begin with them—it’s why leadership development is important.

To create a culture of success, leaders need to learn how to govern collaboratively. Many people think collaboration means collecting inputs, making a decision, and then sharing that decision with direct reports. In reality, collaboration is quite different. It’s about getting all stakeholders to make a decision together, transferring the decision-making responsibilities from the leader to the team.

To do this, teams need a methodology—a set of collaborative tools, such as running through a multistep process to reach the best solution. I once trained NASA employees who were working on the Mars Exploration Program on the art of collaborative decision-making. As part of the training, six different groups used the same framework to approach a complicated decision. By the end of the exercise, each of the groups had reached the same conclusion.

Provide training to your leadership on how to use these tools to solve problems. They need to engage with those tools on an ongoing basis until this new way of solving problems or creating plans becomes a habit. Once that happens, this approach will be embedded in “how we do things around here.”

Be transparent about your goals and how you’re progressing; make sure everyone on your team understands the problem to solve, and also has the space to apply their own expertise to the business of how to get the work done. 

If you don’t have a budget for in-person training on developing collaborative practices, combine self-guided programs with virtual coaching. Once your leadership team has put this into practice, you can move on to the next step.

3. Train your team members

Once your nonprofit management and leadership team members demonstrate competence in collaborative leadership skills, then it’s time to develop leadership skills in employees.

Your training should focus on the kind of skills that make people great team members: making collaborative decisions, communicating clearly, solving problems collaboratively, and creating project or initiative plans together. You’ll also want to devote time to the skills and behaviors associated with being a productive team member, such as being able to work with others in a collaborative environment.

Because team members will be making key decisions and coordinating plans for any initiatives you launch, they should also learn how to use the collaborative tools you’ve trained your leadership team members to facilitate.

Note that you can’t teach people to collaborate by having them complete modules on laptops, though. Your team members need to practice the art of collaboration with each other. You’ll want to find training tools and partners that support collaborative leadership styles. Continue using those tools to approach collaborative decision-making until it becomes routine.

Being able to answer “Why is leadership development important?” is key for nonprofits, but you also need to make efforts to move toward genuine collaborative leadership. Develop a sound strategy and take steps to conduct nonprofit leadership training. After your leaders are fully trained, you’ll be ready to develop leadership skills in employees. Once everyone is comfortable using those skills, you’ll be ready to benefit from a much more collaborative and productive culture.

I am a nonprofit board member, and I will tell you: For the most part, I pull my hair out at board meetings when we get to the budget. Usually, there is a series of QuickBooks reports, presented as PDFs, in a teeny-tiny font. 

The line items don’t always make sense, and it is often very hard to tell if a particular initiative is actually financially healthy for a nonprofit. 

Many nonprofit budgets I’ve looked at didn’t include the whole picture, or tried to get too detailed or oversimplified things. Budgets like that are not very useful as an ongoing tool.

Yet the U.S. government requires nonprofit boards of directors to approve an annual budget, and the board must then review that budget at regular board meetings. 

The law’s there for a reason: Budgets are an important tool for nonprofits to make sure that they are being fiscally responsible in order to keep their preferable tax designation. 

But if your nonprofit budget is anything like the ones I just described, you know that this whole process can be cumbersome, and not particularly useful or valuable. Your budgets should help your nonprofit plan for the future, stay fiscally healthy, and allocate the right money to the right projects. 

Having a well thought out strategic forecast and budget can help a nonprofit be more efficient with their funds, give board members better visibility so they can help guide and assist, and at the end of the day, they should help the nonprofit accomplish its goals. 

If you nonprofit’s budgeting process leaves something to be desired, and you aren’t getting the information or management tools that can help you and your board, then it’s time to change it up and explore a better way to budget. 

Here are three good reasons to think about changing your nonprofit budget process:

1. You can get more out of your board members if meetings are efficient

Board members are usually very busy, very accomplished people. They have joined your board to help you be more successful, and because they believe in the mission of your nonprofit. But they do not have the time to pour over your bad budget and whip it into shape.

What if your board members could look at your budget online, anytime, and see how it compared to the actual results, the previous month, and the same month last year? 

Imagine if a board member could easily understand which programs and initiatives were successful and sustainable, and which were not. 

Imagine a world where board members were happy and excited to look at the budget, see what was actually happening, and give better feedback, help, and support.

How to draft a better budget and review it regularly

This can happen. There are better tools to use, and a better methodology to help you draft better budgets. 

Here at Palo Alto Software, we strongly believe that looking at your budget every month—and comparing it to the right numbers—will change the way you manage your nonprofit for the better. 

Those “right numbers” are your:

• Actual results
• Previous month results
• Same month last year results

One of the best ways to achieve this is by using software designed to do it for you. Of course, I’m a little biased (considering I helped create it), but the truth is that LivePlan is that software—it’s designed to help you evaluate your organization easily and accurately. There’s nothing else like it; that’s why we made it.

2. Donors want to see where their money is going

When a customer buys a product, they just want the product in their hands—they’re usually not too concerned about where the money from the sale is going.

Donors to nonprofit organizations are different: for them, it’s all about where the money is going. Donors want to give their money away to “a worthy cause,” and you need to show them that that’s what you are.

Part of showing that you’re worthy of a donation is showing that you’ll spend the money wisely. Many savvy donors are using sites like Charity Navigator, a site that ranks charities based on how well organizations are using their money. They rely on that kind of information to decide where and how much to donate. You should include financial information on your website too, and even in your brochures. 

And when you have a good budget and an even better budget review process, that’s easy to do—all of your financials are already listed, current, and organized into standard tables and charts, complete with information on why you’re spending what you’re spending, and what exactly it’s accomplishing.

3. Using strategic forecasts and budgets to make sure your fundraising events are profitable

Many nonprofits put on large events in order to bring in a substantial portion of their annual fundraising. It is clearly a successful strategy for some—and maybe most—nonprofits. But surprisingly, often when I ask questions about the margins for an event, and the total cost and the actual net income, I don’t get good answers. Sometimes I only get blank stares. Or I get the very common “we always do this event and our donors expect it.” 

Don’t get me wrong—it is completely fine to assign a value to your nonprofit event that is not actual income. You may get very real tangible marketing, awareness, and donor relation value from an event. 

If you do, you should acknowledge it and try and actually assign a monetary value to it. 

But bigger picture, especially if you are spending tens of thousands of dollars on an event, you should be creating a forecast and budget in order to make better financial decisions about the event.  

Put together an expense budget that takes all your costs into account:

• Venue fees
• Fees for entertainment
• Catering, decorating, and beverage fees
• Costs of your employee hours; how many hours does your staff dedicated to this event?
• Credit card fees
• Advertising and marketing fees to market the event
• Print and operational expenses (printing tickets, invitations, posters, ads, and so on)
• Any cost for items for the event (auction items, gift bags, and similar)

Then you need to forecast the income for the event as accurately as possible. This may be easier if you have been doing this event regularly for many years because you will already know the range of income you have traditionally brought in.  

Off the cuff, this budget and forecast exercise may not seem to be that important. But mark my words, when you do it, it will give you “aha” moments and help you make better decisions about how to approach the event, what to spend money on, and how to focus on bringing in more net income than ever before. 

You can create a “what if” scenario in LivePlan that can help you accomplish your strategic forecast and expense budget, and help you get more financial clarity than you have ever had for your events. 

The Palo Alto Software team, volunteering with local nonprofit Mackenzie River Trust.

This article is part of both our Nonprofit Business Startup Guide and our Business Startup Guide—curated lists of great articles that will get you up and running in no time!

Starting a nonprofit is one of the most rewarding ways a person can spend their time— and it also requires thorough planning and solid dedication.

When you first have that great idea for a charitable organization that could really make a difference, you are likely full of enthusiasm and energy—and it’s key to channel that energy into practical action, so you can move full steam ahead to make your vision a reality.

In this guide to starting a nonprofit, we’ll give you the tools you need to learn how to get up and running.

1. Conduct a needs analysis

First, do some legwork. There are already more than 1.5 million nonprofits in the U.S. alone, so the first thing you should do is verify that some other organization isn’t already serving the need you’ve identified. The process of verifying that there’s a market or demand for your organization’s mission is called a needs analysis.

You’re looking to answer the following questions:

• Is any other nonprofit organization already serving your target audience?
• How many people actually need the service you plan to provide?
• Who is your target demographic—who needs what you’re offering? What do they really need or want?
• Is a 501(c)3 the best way to meet the need?

SWOT analysis: Strengths, weaknesses, opportunities, threats

One way to get started is to do a SWOT analysis—(Strengths Weaknesses Opportunity Threats). Here’s a free SWOT template you can download. If possible, ask other people for their input—potential board members, other people in your network who have started nonprofits.

Market research: Find out if there’s a real need for your service

In addition to doing your SWOT analysis, this is a good time to do some market research, both on your target population (the people you think need what you’re offering) and potential donors.

Until you’ve actually spoken with (or surveyed) those audiences, you haven’t validated that there’s truly a need for what you’re offering. Your goal in this process is to discover what’s really there—you may find that the need in your target population is different than what you thought it was.

Or you might discover that the need actually exists within a different demographic. The point here isn’t to simply prove your assumptions—it’s ok if you find that you need to make some adjustments to your plans.

Read up on IRS nonprofit compliance

This is also a good time to understand what it means to have nonprofit 501c)3 status in the eyes of the federal government’s internal revenue service. The IRS publishes a nonprofit compliance guide that’s worth reviewing early on, so you’re clear on what’s required of that type of organization.

2. Decide on a name and write your mission statement

Deciding on your charitable startup’s name is an important initial step. You’ll need it to be finalized prior to incorporating your nonprofit or filing any other official paperwork.

Do some research to make sure no other charitable organizations or for-profit businesses are using the name you’d like to use. At the very least it will be a hassle if you’re constantly competing with another organization for brand visibility—or answering messages from confused donors or clients.

Rogaski says developing a name and logo that you are happy with is time well spent because of the pride it instills when promoting your organization. You want to be able to hand someone your card or refer them to your website with confidence that they will like what they see.

Now that you’ve verified that your organization’s services and mission are truly needed by your target audience, and decided on a name, it’s time to write your mission statement.

Keep your mission statement short, and make sure it holds up when you ask:

• Does it distinguish you from all other nonprofits?
• Read your mission statement and three other examples (in your niche) to an employee, board member, or someone receiving your services. See if they can identify which one is yours. If not, go back to the drawing board.

3. Build your board of trustees

If you don’t yet have any staff or volunteers, your first board of directors or trustees will play an important role in helping you get your nonprofit off the ground. Your trustees may be able to help you take some of the initial steps toward making your status as a nonprofit organization more official.

Every U.S. state requires that a nonprofit forms a board of directors, who assume governing responsibilities and liability for the organization. For most states, a single person is considered the minimum requirement for a board, but in some states as many as three people are necessary.

The National Council of Nonprofits has a great guide on reasonable responsibilities and expectations you might have of your board members. They also make some solid recommendations on putting together an orientation for new board members to set the stage for their role with your organization.

4. Write your nonprofit business plan

Nonprofits need a good business plan just as much as for-profit companies—maybe even more. Here’s a guide to writing a business plan for a nonprofit, and a free downloadable business plan template that can help you get started. The process of writing your plan (sometimes called a strategic plan) will help you think through all the different aspects of your organization. Plus, if you’re planning to seek a business loan for larger capital expenses, like building or remodeling, every bank will expect to see your business plan.

Lorrie Lynn King, founder of the international women’s health nonprofit 50 Cents. Period., says, “In fact, you are starting a small business. Nonprofit administration and programming require business acumen, financial planning, strategic planning, and people management skills—sometimes all at once.”

But it’s not just about getting a bank loan. Business planning is about making sure you know where your organization is going and how you’ll get there. “It is absolutely crucial to have three-year plans for both the program and administrative sides to your organization, with measurable outcomes,” King says. “Know where you want to go, then create the map for getting there and make adjustments along the way.”

A nonprofit business plan outline

A nonprofit business plan will include many of the same sections of a standard business plan:

Executive summary

Make sure your executive summary includes your mission statement. You will want to have a written overview of what your vision is for your organization.

Products and services

Are you making a life-changing product at little to no cost for a population in need? Are you providing an essential service to your community? Your products and services are what you’re delivering to meet a need.

Market analysis

Doing a market analysis will help you better understand the population you intend to serve, as well as your donor base. Doing this type of research should also give you a good handle on competition, both as far as who else is offering what you’re offering, but also in terms of who you’re asking for philanthropic support.

Management team

Who is going to be on your management or leadership team and your board of directors? What are their duties, and what do they bring to the table?

Annie Rogaski, founder of the Silicon Valley nonprofit The Club offers this tip: “Form a strong board that works well together but brings different perspectives and creates an environment that encourages discussion of those different viewpoints, to arrive at the best decision.”

Financial plan

Your nonprofit’s financial plan is essential. Just because you’re not focused on generating a profit doesn’t mean it isn’t critical to put together a plan for how you’ll sustain your organization, deal with cash flow, and even grow in the future.  

King advises: “Start a funding and a savings reserve for your organization the minute donations start rolling in. Create a system of paper trails and transparency.”

Beyond setting an initial plan for bringing in funds, you’ll want to set up and monitor a few key financials on a regular basis. It might make sense to run your financials on Excel spreadsheets for a while, but think about your long-term plans for accounting. Using a cloud accounting system like QuickBooks or Xero can help you stay organized. Plus, if you connect it to a business dashboard solution like LivePlan, it becomes much less time consuming to put together financial reports for your board meetings.

As you get the ball rolling on your new nonprofit, it can be helpful to check out completed nonprofit business plan examples for reference while you build your own.

Your nonprofit business plan will act as your guide, allowing you to make strong decisions with measurable outcomes. Business planning is one of the foremost tools for building and growing a successful nonprofit.

5. Complete your bylaws, file incorporation paperwork and for 501(c)3 status

In the United States, nonprofits have to meet regulations and requirements at both the state and federal levels. When it comes to how to start a nonprofit, this may be one of the more complicated steps.

While there are 29 different categories of 501(c) organizations, the most commonly created is a 501(c)(3) organization, which is defined by the IRS as “charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, or preventing cruelty to children or animals.”

The majority of nonprofit organizations in the U.S. will fall into the category of a 501(c)(3) organization, which makes them exempt from federal income taxes. (It is important to note that employees of these organizations are still required to pay income taxes.)

It’s best to get a jump on filing for tax exemption early, as this process can take up to a year.

“There is a way to get expedited review if there is an urgent need that your nonprofit fills,” Rogaski says. “Don’t feel limited by the particular categories they identify—if you can communicate to the IRS the urgency for your nonprofit, you may be pleasantly surprised by the response.”

In addition to filing for tax exemption, you will need to register or reserve the intended name of your organization, and file articles of incorporation as a nonprofit. The specifics of this process will vary from state to state. Every state has a State Charitable Official from the national association that you can contact for more detailed information about what you will need to prepare.

It’s always a good idea to retain the services of a lawyer familiar with the nonprofit creation process, too. Knowledgeable advisors will be invaluable as you prepare your filings at both the state and federal levels.

6. Create a fundraising plan and get to know your donor base

Every organization has to keep the lights on, and nonprofits are no exception. Your organization will require a minimum amount of money just for operations on a regular basis, not to speak of special projects or unforeseen growth or expenses.

Typically, nonprofits rely largely on donations for this money and having a committed donor base is going to be essential to your organization. Ask yourself if you really know whether there is financial and community support for your proposed nonprofit. Who is the person that becomes a member of your organization, or that donates their money? Developing a user persona can be a helpful tool here.

If this is the first time you’ve ever done fundraising or nonprofit development work, consider doing some online courses on how to build a fundraising plan. The Association of Fundraising Professionals (AFP) is a good place to start, though there is a cost to join. Also, you might seek a board member with experience with fundraising to help guide your initial efforts.

A key factor will be branding and marketing. Part of instilling confidence in your organization will come from choosing a good name and logo. You’ll also need to consider how you’ll reach your donors and explain the importance of your message.

How will social media, websites, videos, and so help potential donors and your target population understand what makes your organization great, and worthy of their money?

Rogaski has some words of advice on branding your new venture. From her experience, it takes time to get it right. “It took us about three months of meeting regularly, brainstorming names, to decide on our name (which stands for Connect Lead Unite Build) and to have the logo designed,” she recalls.

Of course, a strong social media presence is essential to gaining media recognition. “I cannot stress the power of networking and social media enough,” King says, noting that her active Twitter feed has landed her interviews with CNN and her local NPR station. She also makes good use of her business cards: “I never leave home without a stack of my cards, even if I’m just in yoga pants and running to the store.”

But remember to start your branding and fundraising plans with some research—understand who your prospective donors are. Talk to them, if you can, and understand what drives them so you can put together a campaign that resonates with them. And keep in mind that many donors will want assurance that you have been granted your 501(c)3 status so they can write off their donation on their taxes.

You may also want to look into grants. GrantSpace has some great resources on how to find grants for your organization. Keep in mind that grant applications take time to write. They usually come with reporting requirements, and there’s no guarantee that you’ll get the same grant next year. Also, check out Foundation Center for lots of information on grants and fundraising in general.

7. Hire your first staff or find volunteers

Really, your board of trustees are your first volunteers. From there, you’ll probably find that there are still skill gaps within your organization, or that you just can’t get everything done yourself. Maybe it’s time to find a volunteer to help out.

Start with putting together a brief description of the role you need to fill and how much time per week you think it might take. Then get the word out. Depending on the type of volunteer work you’re offering, you might use a service like Volunteermatch.org to list your opportunity. Or you might put it on craigslist, or advertise in a high school or college newspaper.

A word of caution: if your need is fairly involved or requires a specific skill set, it’s perfectly reasonable to ask a potential volunteer to do an initial project before you commit them to a longer-term project, just to see how it goes.

Volunteers can be really helpful, and many nonprofits are primarily volunteer driven. But now or at some point in the future (when your finances allow) it might be appropriate to consider bringing on full or part-time paid staff. Here’s a guide to hiring your first employee.

8. Keep your eyes on your mission

As your charitable organization takes shape, make time to review both your mission statement and your business plan. Because you’ve been hard at work getting things up and running, it might seem like everyone around you should be able to recite your mission (and bring it to life) in their sleep. But it doesn’t hurt to keep your mission at the fore of every conversation you have around services, finances, and hiring. “Does your next move support our mission?” is a great question to ask frequently.

Review your business plan, especially the financials, regularly. Set milestones so you know you’re on track, and can recalibrate if you ever find that you’re not meeting your goals.

Keep in mind that your strategic plan is your roadmap to actualizing your mission out in the world. Use that plan as a tool to set you in the right direction and ensure that your nonprofit is sustainable well into the future.

When it comes to marketing, nonprofits have a few things in common. First and foremost, every nonprofit relies on marketing efforts to attract donors and volunteers. Every nonprofit, no matter how well staffed, could use more marketing resources. And, last but not least, there are never enough hours in the day to accomplish every task on the marketing to-do list.

I’ve noticed these common threads in every nonprofit that I have worked with as a marketing specialist. I’ve watched leaders and volunteers work 14-hour days, stay open late to accommodate clients, and network their hearts out to make sure there is enough money in the bank to keep their lights on. With so much going on, it’s no surprise that marketing sometimes takes a back seat.

However, when it comes to marketing, social media is an excellent tool for nonprofits. Social media can reach donors and volunteers, it doesn’t require multiple staff members to manage, and it doesn’t require a big time commitment.

To help nonprofits get the most out of social media, I’ve created this guide that nonprofits can use as a social media playbook. Whether you’re new to social media, or a veteran, this guide is full of tips to maximize your time and exposure.

Frequently asked questions:

Like any nonprofit, you probably have some questions. Here’s a quick list of the most frequently asked questions that I hear from nonprofits:

Which social media sites are best for nonprofits?

Nonprofits have had great experience with all kinds of different social platforms. Facebook and Twitter are the most common. If you’re just starting out, I would start with one of these two.

If you’re a social media veteran, you might want to try Jelly. It’s a new Q&A platform that lets you interact with a large following of people.

How many social media sites should we use?

You can use as many social sites as you’d like, but don’t over commit. Time is always a factor for nonprofits, so keep that in mind as you sign up for various social sites. If I had to give you a number, I’d say two social media sites is perfect.

How often should we post?

You should post at least once a day to every site that you run. If you can post more frequently, go for it. However, the key to social media engagement is consistency, so set a frequency schedule that you can stick to.

How often should we promote ourselves?

In the social media world, you want to adhere to the 80/20 rule. Eighty percent of your posts should be interesting content that’s relevant to your nonprofit; the other twenty percent can be promotional. You don’t want to go overboard with promotions because you’ll sound too desperate, which turns off your fan base.

What to post:

Wondering what kind of post are the most useful? Well, wonder no more. Here are five kinds of posts that every nonprofit should have on their social media sites:

1. Show people how you help

Help your audience make a connection with your nonprofit by sharing a story about those you help. Whether you assisted a family with medical care, provided food for the homeless, or helped stray animals, it’s important to show your audience how they help. Here’s a great example from the Animal Humane Society:

2. Try a reoccurring theme

You’re probably familiar with Throwback Thursday, right? For Throwback Thursday, every Thursday your friends post a picture from their past on their Facebook page. Well, you can try something similar. Think of a reoccurring theme that fits your nonprofit, and schedule posts ahead of time. For example, the Animal Humane Society has Success Story Saturday, and the Red Cross has Fire Safety Friday:

3. Share news updates

Share news articles that pertain to your nonprofit. It’s a great, unbiased way to keep your audience informed about changes that impact your organization. Livestrong, for example, shared this article from CNN on its Facebook page:

4. Say thanks

Social media gives your nonprofit the chance to publicly thank or acknowledge supporters. If a volunteer reaches a milestone or you receive a big donation, turn to social media and say thanks. It’s always nice to be recognized, like this tweet from the Susan G. Komen foundation does:

5. Promote events

When you host an event, use social media to get the word out. You can even set up an event on Facebook so people can register with ease. If you don’t know how, this short tutorial explains it in three easy steps. Here’s how a food shelf promoted an upcoming event:

In addition to these five posts, you can also share statistics about your organization, tie posts to upcoming holidays, share pictures of events as they happen, offer small historical tidbits about how your organization got started, and highlight volunteers. The options are endless.

Tips to grow your following:

The success of your social marketing relies on attracting the right fan base. Don’t get hung up on the number of followers. You’re looking for quality over quantity. Five hundred followers who have an interest in your organization and are willing to contribute to your success are more beneficial than two thousand followers who aren’t engaged with your nonprofit.

Here are some tips to attract your target audience:

• Share content from other nonprofits. Share the social media love. If you share content from another nonprofit, they might do the same, which exposes your nonprofit to more people.
• Tag others. Anytime you can tag others, you should. Again, it increases your exposure. So, when you’re thanking an organization for a big donation, or if you just teamed up with a new business, include them in your post.
• Put social media buttons in emails. Links to your social media pages should be embedded in your email signature. You should also include social media buttons in any email correspondence that you send out.
• Run a contest. To boost your fan base, you could host a contest or a giveaway. By asking your current followers to share links to the giveaway, you can boost your following quickly. Check out this post on HubSpot to learn more about running a successful social media contest.

Timesaving tools:

You don’t have to log into your social media accounts every day and create posts. There are several apps and online tools that you can use to juggle several social media sites and schedule posts ahead of time.

For example, with a management tool you can access your Twitter and Facebook account from one dashboard. You can post to both sites, schedule posts ahead of time, and keep an eye on your feeds—all from one place. Here are three of the most popular management tools:

• Hootsuite
• Buffer
• IFTT

• Use a curation tool (see below)

You’ll also want to share interesting content from other sources on your page, but who has time to scour the internet for articles, infographics, and videos that are relevant to your audience? To save time, use a curation tool. These tools scan the internet for content based on keywords that you supply. You get a list of relevant content, which you can share instantly or schedule for a later date. Here are two options:

• Swayy
• Klout

Final thoughts:

Social media is a marketing tool every nonprofit should have in its toolbox. It provides access to donors, volunteers, and even clients who may need your support.

How does your nonprofit use social media? Has it helped your organization? Tell us how you utilize social media as a marketing tool, and share your tips in the comment section below.

Have you wondered how to start a food pantry, to give back to your local community? You’re not alone; hunger is a mounting problem in the U.S and abroad. In the U.S., 49.1 million Americans lacked access to a sufficient amount of affordable and nutritious food, according to Feed America. This “food insecurity,” as it’s called, is impacting a growing number of families.

In response to this growing demand, you might consider opening a food pantry or a food shelf to help those in need. Starting a nonprofit like this can be rewarding, but it comes with challenges of its own. If you’re wondering how to start a food pantry, keep reading.

To help those looking to start a food pantry, we asked two experts who work at a food pantry on a daily basis to share insider information on what it takes to start this type of nonprofit.

Rick Birmingham, the director of development at Neighbors, and Allysen Hoberg, the program manager at PRISM, offer some tips on how to start a food pantry, to get your business up and running.

Here’s a little background on the organizations:

PRISM helps those in need with a food shelf.

PRISM, which stands for People Responding in Social Ministry, operates Marketplace Foodshelf as one of its core programs. It serves 600 families per month living in the suburbs surrounding Minneapolis, Minnesota.

Neighbors is seeing an increase in demand.

Neighbors assists about 550-600 families per month through its food shelf, which serves seven communities in northern Dakota County in Minnesota. Like PRISM, the organization offers several other assistance programs as well.

With the help of our experts, we’ll outline five topics that every food pantry organizer needs to know about.

Creating a plan to start a food pantry

Much like starting a business, starting a nonprofit requires a plan. To help you create a solid plan, check out our Food Bank business guide. In addition to utilizing our templates, Hoberg suggests answering a list of questions before you help your first client.

Know your service area

• What is your service area?
• What’s the demand like in your area?
• Who will be using your food pantry and how does that affect what kind of food you will give out?

Your support

• How many times can a family come each month?
• How much food can a family take?
• How is food distributed to those in need?
• What are your hours of operation?

Internal structure

• How will the food pantry stay stocked with food?
• Who organizes and instructs volunteers?
• What do your volunteers do when they arrive?
• How does the food pantry stay clean?
• Who is responsible for day-to-day tasks?
• How will food storage be handled?
• How will new clients be accessed?
• Who is in charge of new client intake?

Outside support

• Who will you rely on for support in the community?
• Who is in charge of making and maintaining outside relationships?
• Can your organization qualify for grants, aid, or other nonprofit funding sources?
• Who is responsible for fundraising with outside groups?

Getting food on the shelves

To accommodate those in need, you’ll need a steady supply of food to offer. It won’t take long for people to depend on your services, so it’s vitally important to make sure you have enough food on the shelves at all times.

There are four ways to keep your shelves stocked:

Food drives

When it comes to collecting grocery items, food drives are the most popular means of support. During a food drive, you ask community members, businesses, or churches to donate items to your organization. PRISM, for example, relies on local donations from schools and churches.

Food rescue

Hoberg suggests teaming up with local restaurants, farmers, and grocery stores that are willing to donate their leftovers. PRISM works with a regional grocery store—Cub Foods—for fresh food.

Purchase food

There will come a time when you need to purchase a few items. You may hit a slow month where donations are low, or run out of items that aren’t frequently donated. During these times, you’ll need a budget to buy what you need, Hoberg says.

“In addition to donations of food, we also heavily rely on monetary donations, and each week, purchase items like produce, milk, eggs, butter, and cheese for our families,” she says. “ For every dollar donated, we can provide six meals to a family. Without purchasing food, PRISM would have great difficulty responding to the level of need we have in the community.”

Try to form partnerships with local businesses to get food at a reduced rate, or buy in bulk so your organization stretches every dollar.

Food banks

A local food pantry can turn to food banks for help. A food bank works with big businesses, food distributors, and manufacturers to secure donations on a large scale. These donations are doled out to smaller organizations at reduced rates.

Handling client relations when starting a food pantry

Food shelves help a variety of people, but the people they serve all have one thing in common—they need help. It’s important to create the right kind of environment to make clients feel welcome.

Here are a few tips to do just that:

Offer flexible hours

People who use a food pantry are often “underemployed,” meaning they have a job but can’t make ends meet. To accommodate them, be sure your hours of operation work around traditional nine-to-five jobs.

Conducting interviews

To accept new clients, you’ll need to conduct an interview. Here are several tips:

• Be friendly and welcoming
• Conduct an interview, not an interrogation
• Use positive language that refrains from making the client feel ashamed
• Make the process as quick and painless as possible

Decide on a food distribution method

There are two kinds of distribution: boxed food and client choice. The “boxed food” model allows each client to pick up a pre-packed box of food, while the “client choice” model offers more of a grocery store atmosphere that allows clients to pick the food they want.

The “boxed food” model is fair—everyone gets the same items, you don’t need the space to set up grocery store aisles, and it’s a simplified method of distribution. However, food can go to waste. Maybe the family has a peanut allergy and the standard jar of peanut butter isn’t helpful. Maybe a percentage of your clients would like more ethnically diverse food. For these reasons, many food shelves like Neighbors have switched to the “client choice” model, which Birmingham says has improved client relations.

“Moving to the choice model was transformational for us, and we highly recommend it,” he says. “It changed all of our interactions with clients in a good way. We listen more and we provide more food they will eat. We actually give away less food.”

Challenges to be aware of when starting a food pantry

Starting a food pantry will come with challenges. Here are a few to be aware of:

Growth can be a hurdle

While the point of a food pantry is to help those in need, accommodating that growth can be difficult, Birmingham says.

In 2010, Neighbors saw an influx of clients. At the time, they were helping about 300 families and assumed that need would taper off, especially considering the recession was coming to an end, but that wasn’t the case.

“We’ve seen a steady rise in demand to over 600 families in July 2014. At present our strong relationships with local stores have provided us with enough food to keep up,” says Birmingham.

Dealing with additional demand puts additional strain on your organization to meet needs and sometimes you don’t know if that challenge can be met, Birmingham points out.

Lack of space

Food is going to take up space. When you start out, you might not have a lot of food to store, but as you grow, space can become a real concern.

“Space is vital,” Birmingham says. “Sometimes you need room to store surprise donations. Once we received a ton of frozen ribs, but had to find space to store and refrigerate them. I don’t necessarily have a solution for future organizations, but be aware that space is crucial.”

Leadership needs

You need someone to steer the ship. Most food shelves have a board of directors that oversee policies and put key players in charge of the daily operations. Birmingham says there are five key players that every food pantry needs to run smoothly.

• Director: Someone to wear the many hats, from administrator to cheerleader, from implementing direction from the board to making sure the food pantry passes inspection.
• Finance: Tracking the finances is vital to running an organization well and providing good stewardship of donations.
• Food pantry manager: Someone to manage day-to-day operations.
• Outreach: Get the word out to those in the community to donate.
• Intake: Someone to work directly with clients, to listen to them and help provide resources.

Volunteer challenges

Every food pantry needs help to run smoothly, and since your budget will likely go toward food or paying a skeleton staff to handle the daily operations, volunteers will be the lifeblood of your organization, Hoberg says.

“Volunteers pose challenges in consistency and quality,” she says. “Retention and reliability can also be an issue. We work with a majority of retired volunteers, many of whom leave for the winter, so we have to plan accordingly.”

Resources to help you start your food pantry

• The Food Bank of Corpus Christi has information on forming a food pantry with charts that suggest food items and how much clients should get.
• Second Harvest Heartland, a food bank, has dozens of helpful articles that cover topics like fundraising and volunteering.
• Create the Good, a site ran by AARP, has an in-depth tutorial on organizing a food drive.
• Asia Catalyst, an advocacy group, has a guide on handling volunteers.

Can you suggest additional resources, or do you have tips to add based on your experience? Feel free to add to our guide in the comment section below.

For many consumers and small business owners in the U.S. and western Europe, the knowledge that the people producing their coffee were usually struggling from poverty, in rural areas, and vulnerable to exploitative practices by powerful middlemen who gave them prices far below market value, is disturbing.

People in the western world wondered, is there a solution? We want this product, and we don’t want it at the expense of some one else. Farm work is hard work, and the people that make it happen should be able to get a fair shake of the booming international coffee business.

Owning and running a coffee shop is hard work too, and if you’re a small conscientious business owner it’s natural that you’ll have questions. We’ve compiled some helpful tips on this subject that you can find here. But what about the coffee itself?

In a global market where the buyers and sellers of coffee are often half a world away from those who grow and maintain the plants themselves, what are the worker’s lives like? Are the working conditions safe, are they getting a wage that reflects their contribution? What about the farms, are they environmentally friendly, and are they using green and sustainable methods?

What is fair trade coffee?

The fair trade movement arose as a possible way to address these concerns. Since its inception, there has been controversy over the efficacy, practices, and costs associated with the fair trade label. Simply put, the term “fair trade” typically refers to the movement or principles of providing fair wages and labor practices in international trade. To better understand the details of many of those principals, you can find an in-depth charter here.

The coffee plant, far before it makes its way to your cup.

The terms “fair trade certified” or “fair trade certification” are related to a certification by either FLO (Fairtrade Labeling Organization International, also called Fairtrade International) or Fair Trade USA, two nonprofits who impose regulatory requirements related to safe labor practices, wages, and environmental impacts on farms and plantations around the world (specifically Africa, Asia, Latin America, the Caribbean, and Oceania) in exchange for the fair trade label.

Certification began in 1997, as a concrete way to ensure that a fair trade certified (FTC) label on a product meant that a series of milestones had been met, and a socially conscious consumer could rest easy with their purchase.

After having met these requirements, anything labeled fair trade has a “price floor,” meaning that FTC coffee will never fall below a certain price (currently $1.40 USD per pound), despite changes in the market.

Interestingly, these two organizations—FLO and Fair Trade USA—used to work together, but parted ways in 2011. You can read more about the separation here, but the gist is that they had a difference of opinion about which methods would best serve their intended beneficiaries.

The subject of which methods are the most effective and efficient is controversial, and this is a big part of the ongoing conversation about finding ethically sourced coffee and how fair trade certified coffee fits into the larger picture.

Now that you have an overall understanding of what the fair trade movement and fair trade certification are, let’s explore what this means if you are a business owner considering buying and serving fair trade certified coffee, or finding ethically sourced coffee in general.

The pros and cons of fair trade coffee

Pros:

Keeps grievous violations at bay. Because of the certification process that began in 1997, you can rest assured that some of the worst labor and environmental violations—such as unsafe working conditions—will not be happening. John Hunt of Westrock Coffee notes that while fair trade certification has a multitude of limitations, “there is no doubt that the stamp ensures against gross practices of abuse.”

The labels for Fair Trade International and Fair Trade USA.

The label has brand recognition. Fair trade coffee is a popular concept that most people have heard of, and it will send a message that your business cares about the environment and the lives of the people who produce your coffee, helping to shape a positive reputation. This is not the only way to achieve this goal, of course, but a label is clear and eye-catching.

[pullquote]”All fair trade products are certified under the same standards, so you are assured a certain level of quality and social responsibility when you see the label.”-Kate Harrison [/pullquote]Kate Harrison of Green Bride Guide notes that there are differences in the benefits offered from one type of coffee to the next, depending on variations such as region. She points to the example that you could reduce the carbon footprint of long distance shipping by deliberately selecting a coffee that comes from closer to where you are.

Harrison continues, “That said, all fair trade products are certified under the same standards, so you are assured a certain level of quality and social responsibility when you see the label. It is for this reason that I look for double certifications when possible (e.g. organic, as then it is pesticide-free or bird-friendly).” There are a wide swath of certifications available, and fair trade is one of the most well-known.

Meets the demand of the socially-conscious consumer. Fair Trade USA references the concept on their website of the socially-conscious consumer, someone who is aware of certifications like USDA organic and fair trade and will likely be looking for them or asking about them. If you own a coffee shop or restaurant, you’re likely to get questions about the type of coffee you serve and why, and to many customers fair trade certified will be words they’re happy to hear.

Cons:

Simply put, there is a small pool to choose from. From the Stanford Social Innovation Review: “An estimated 25 million small producers make up 70 percent of worldwide coffee production, but sales of fair trade coffee account for only two percent of total production. Those figures clearly indicate the challenge—as well as the opportunity—that lies ahead for fair trade organizations.”

Some detractors argue that quality problems can arise as a result; a farmer would naturally sell a lower quality product at the higher mandated fair trade price, instead of trying to sell it on the open market.

[pullquote]”The fair trade certification process can be laborious and expensive for small farms.”[/pullquote]

Sometimes, a higher cost.  For every pound of fair trade coffee sold in the U.S., retailers pay 10 cents to fair trade USA. In addition, purchasers pay a subsidy of twenty cents per pound that does not go directly to the farms, but is instead retained by the cooperatives the farms are required to belong to, and then the cooperative votes on how that money is used. Prices for products obviously vary, but these costs will be there for fair trade products specifically.

Certification can be prohibitive. FLO and Fair Trade USA regulations can be a hurdle for a variety of reasons, not the least being that the documentation required raises language and literacy challenges for some farmers. Hunt notes that in order to fulfill requirements, farmers can need a fair amount of money in order to garner the distinction of being fair trade. Hunt adds “Sometimes, the process can be so laborious, and expensive that farmers who elect to participate in the program actually do so at a loss.”

Controversial impact. There are critics of the fair trade system itself, who say that it is less impactful than the name would imply. Recent research by the University of London found that “fair trade standards for tea and coffee have always been far more concerned with the incomes of producers than with wage workers’ earnings.” What this means is that while small to medium sized farm owners are getting a more fair shake, less attention is being paid to those the farthest down the food chain, the laborers.

Only growers who belong to cooperatives qualify as fair trade, this means that large companies are essentially excluded from being certified as fair trade by default, regardless of the socially or environmentally responsible practices they may employ. The research from Professor Haight in the Stanford Social Innovation Review also shows that the premiums, which go directly to the cooperatives, are often paying for things like additional office staff and nicer facilities.

How you can find ethically sourced coffee

With so many conflicting perspectives, what’s the take away? If you are a business that wants to be socially and environmentally responsible, or an individual consumer with the same concerns, you can find coffee that is grown sustainably and supports those who work to bring it to you. It takes a bit of digging, but there are many coffee companies out there who have this at the forefront of their missions.

Here are some tips on vetting your coffee provider:

Talk to friends. Tanner Agar, CEO of The Chef Shelf, has the practical suggestion of looking to those who’ve come before. If you’re opening a coffee shop, think of the people you know who are already in the restaurant industry that might either serve FTC coffee, or serve coffee from a company that shares those values, even if their products are not FTC. He points out that they may have an existing personal contact with these providers, paving the way for you to contact or vet them yourself.

Visit the farms first hand. “Going to origin is definitely a good option if it is possible, but with the time and finances necessary it is often not practical,” says John Hunt of Westrock Coffee. Depending on where you are financially, if it’s feasible for you to take a trip and tour first hand the conditions of production, that is a fantastic idea. It’s culturally enriching, could double as a vacation, and any questions will be solidly answered.

Get references. If it’s not possible to visit the area or a friend doesn’t have a solid recommendation, ask the producer for references. This is a nice straightforward method, if they’ve worked with companies similar to yours in the past that are happy to put in a good word on the coffee producer’s behalf, reach out and speak with them.

Thorough internet search. The internet search part is obvious—Google is the low-hanging fruit of vetting, and it’s the “thorough” part that is essential. Keep an eye out for reviews (both positive and negative), and details like past companies they’ve partnered with, any public financial information, and all the details that indicate transparency on their part about the labor and environmental conditions of their production.

Go your own way

When it comes to deciding what kind of coffee to serve in your business, Agar offers this advice: “The decision to seek out and serve these coffees is personal. Many coffee shops are designed for relaxation, and collaboration. They are home to business people, artists, and students. If your customers will value these principles and pay a premium, then do it. Only an owner can know what’s right for them.”

Harrison, who works in the wedding business where coffee is always a factor, says, “Some brides love Starbucks, which works hard to sustainably source and offers organic blends—but only a fraction of their products are fair trade certified.” She also offers the example of a coffee company such as Rohan Marley’s Marley Coffee, which doesn’t offer exclusively fair trade, but every coffee is some combination of fair trade, USDA organic, or Rainforest Alliance certified, so the social mission is clear through each product.

[pullquote]Many companies strive for socially and environmentally conscious practices, without dealing exclusively in fair trade products.[/pullquote]

Hunt confirms that Westrock deals with both fair trade and non fair trade coffees, and says that the company works to embody socially conscious principles. Some of the farms they work with are so small that the fair trade requirements are prohibitively expensive, such as some partners with as little as a dozen coffee trees.

He notes that the company pays their employees 20 percent above the local market, and provides benefits to plant workers such as access to free showers and free hot meals. They also extend a little further out into the surrounding communities by providing free running water and nutritional programs to the farmers they work with in rural areas.

While fair trade certification is one available option, there are many coffee companies that combine multiple missions and strive to have an overall socially and environmentally friendly company without exclusively dealing in fair trade products.

Do you serve coffee that has some kind of certification? Why or why not? I’d love to hear your thoughts and experiences!

More information to help you start and run your coffee shop:

• 13 Tips To Open A Successful Coffee Shop 
• Free Cafe and Coffee Shop Business Plan Templates
• Know Your Industry Before Your Start Your Business