Get out the Box: Putting Profit in the Non-Profit sector

Nonprofit does not have to equate to long hours with poverty wages. If that is what you thought, rid yourself of that notion immediately. In California, the nonprofit community represents the third largest employment sector. That means that real people and their families depend on the fiscal success of nonprofits.

The functional, technical difference between a for-profit and a nonprofit is only the ultimate goal of the organization. In other words, they can share similar methodologies as long as the outcome is different. Nonprofits seek to raise funds to advance a cause or mission for social good. Most for-profits seek to raise funds to give to their shareholders and well, to raise more funds. In addition, the IRS requires an additional layer of accountability, which limits how nonprofits utilize funds or donations.

What is the point?

Your nonprofit does not have to suffer long, enduring periods of resource deficiency. Here are three proven strategies to increase resources!

Strategy One: Get Earned Income!

You do great work. We know. Just because it is great does not mean it has to be free! There are people, organizations, and entities who can afford to pay for your services. Find a way to turn some of your outgoing resources into INCOME.

Strategy Two: Consider Social Enterprise

A social enterprise is “an organization or venture that advances its primary social or environmental mission using business methods.” The social enterprise is distinct from most nonprofits as it shifts the income framework from external to internal. That is, instead of depending on the government or philanthropic sources, your nonprofit can drastically increase revenue through business operations.

Strategy Three: Diversify & Amplify your income streams

You might remember in business, a fast way to grow is to increase revenue streams, or in other words get more money from more sources. Do not settle for one or two grants. Get more because you deserve it.

Hopefully, these few tips can help you put the profit back in non-profit! Stay away from deficit thinking…the resources you need are near!