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Not-for-profit (NFP) organizations face unique challenges. From day one a NFP is focused on two tasks:
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- carrying out its mission
- funding the mission and support activities.
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Both are critical to the success of the NFP and are dependent on each other. The mission cannot succeed without funding. Fundraising will not be successful without a clearly articulated mission and a plan to execute it (including budgets)!
One of the earliest (and typically on-going) obstacles for success occurs when an NFP confuses the “non-profit” classification as meaning – tax exempt. Not all non-profits are tax exempt. The tax exempt status must be requested and supported by an application to the IRS. Furthermore, NFP status and tax exempt status can be a challenge to receive and maintain.
How the organization operates, its funding, and activities play a significant role in obtaining and maintaining status as a NFP (and/or tax exemption). All too often, well intended decisions, activities and “programs” step outside the boundaries of the mission and operations that enabled the organization to qualify for its NFP/tax-exempt status.
Perhaps an even larger challenge to NFPs is the thought that “non- profit” means no profit for the organization. To the contrary, NFP organizations need to be focused on enabling their organization to make money over and above the cost of events, campaigns, and other activities. The “non-profit” label is not meant to mean “no profits”. It means that the profits or earnings of the organization go back into the funding of the mission and related operations and programs, rather than to investors/owners. The NFP is not owned by its founders, board, or any other individual or entity…it is established to execute a purpose/mission – so the more applicable label may be “for profit for a purpose/mission”.
F.O.C.U.S. Resources provides advisory services in the following areas for new and existing NFPs:
- Entity setup
- Accounting processes and procedures
- Internal controls and management oversight processes
- Mission definition
- Tax exempt status applications (reviews and development)
- Board selection and training
- Policies and procedures
- Fundraising strategy
- Strategic plans (3 and 5 year)
- Budgets and forecasts
- Compliance and governance
- Operational design
- Financial and operational performance reviews
- Annual planning
- Annual and program audit support
Well designed, documented, and professionally run NFPs have a competitive advantage over other organizations when pursuing funding. Whether you are seeking funding from public or private granting organizations (government agencies, private foundations, corporations), event sponsorships, donations, or community support, organizations with well-thought-out and written strategic plans that include detailed budgets have more opportunities than organizations that lack these items.
For more information on our services call us at 919.234.3960 or e-mail us at info@focusresourcesinc.com.
