In social media, every time you post a picture or make a statement, it is call a status update. It’s how people get a glimpse into what you do, your hobbies, and what you enjoy.
For businesses, it is how you feature the use of your products, customer testimonials, or events or specials you want your followers to know about. For your business, your social media has been rolled into your larger plan to grow and sustain your passion. Nonprofits or charitable organizations have a unique status that has nothing to do with social media, but I thought the play on words would peek your interest. Please don’t stop reading.
Charitable organizations have a nonprofit tax status. This means that they do not pay taxes on the funding they receive. It also means that the people that contribute to them can get a tax deduction for their contribution to the organization.
What this tax status does not mean is that charitable organizations are not allowed to keep funds on hand in a bank account. It does not mean that the work the organization does in the community has little value or should be done for free. It does not mean that the people that everyone who works to accomplish the work for the organization should be a volunteer, or accept a stipend for the work they perform.
For one reason or another, non-profits operate as they need to save in every aspect of their work. All this saving at the costs of more than the few pennies gathered in their commitment to do the most with the least. These costs are not always on a balance sheet or easily visible to the public, but are surely felt by those that passionately work to carry-out the mission of the charitable organization. It may be in an hour that was taken from the non-profit workers family. It could be in the sleep lost in searching Pinterest for an inexpensive ways to decorate for an event. It might be in the weekend get-a-way that never happened, because instead of getting reimbursed, a non-profit worker shouldered the cost of a reception. These stories are all too common with non-profit organizations.
Donors drive this behavior by inquiring about expenses. Non-profit staff is conditioned to be anxious if the conversation turns towards line items like overhead or fundraising expenses. As a result, non-profit leaders tend to look at every payout as an expense rather than an investment. With every idea or suggestion, leaders evaluate it by how much it will cost rather than for the opportunity of how many more revenue it will generate or people it may serve.
Did you know, the non-profit industry represents the third largest employer in the United States[1] after retail and manufacturing? This means that supporting the non-profits in your local community, means providing economic impact to your region. I recently participated in a webinar where the presenter talked about having a line item on their balance sheet that was the difference between what they pay their employees and what they should be paid. They count it as part of their contributions. They do it also to keep the board informed and to have it as a goal for the organization. This is now a way to show this as a part of your story. To learn more, go to www.pivotground.com .
Non-profits are a collaborative. Charitable organizations offer a unique solution to a community problem. Charitable organizations are also a business. Like any organization that provides a unique solution to the community, it needs a good plan. Whether we are talking about a restaurant with a secret sauce or the local Yoga/ Pilates studio, success follows a solid plan.
Business Plan – A plan that is developed in proposal of an organization. An instrument used to gather support for the organization with others. It is your operational, day-to-day plan.
Strategic Plan – A plan that is developed to propel the organization forward or redirect the organization to insure its survival. This is your growth plan and usually discusses your business/ operational plan.
The people involved in and that start charitable organizations are extremely passionate in their drive to solve a problem. Have they taken time to evaluate their expenses, operations, and needs? Do they set-up an annual budget? I once worked with an organization that raised nearly a million dollars, but never had an annual budget.
Not only are these plans important to managing your organization, but they are instrumental to telling your story. In fundraising, it is important to explain what it takes to carry out your mission. It may help in understanding how many people you can help, or how many meals you can serve, or what you need in scholarships.
Take time to understand that your non-profit is a business. Understand your expenses, know where your revenue comes from, be able to explain your impact to the community.
PB&J marComm is happy to help you put together a plan and tell a great story. Please contact us
[1] https://www.fastcompany.com/40571812/the-nonprofit-sector-is-the-third-largest-employer-in-america
