The new year is an excellent time for nonprofit organizations to take inventory of the wins and losses of the past few years and make New Year’s resolutions to improve can change and change. Whether it’s setting new goals, redesigning your website, or nailing down a
nonprofit line of credit for when you need ready access to cash, it’s essential that you start the new year on the right foot for your nonprofit.
Establish Goals and Relevant KPIs
While the previous year may have been disappointing, it’s time to make changes as the world tries to pull out of its pandemic slump. First, you should set goals for your nonprofit and pay close attention to key performance indicators (KPIs). According to Donorbox.org, the top KPIs for nonprofits include:
- Gifts secured in a specific time period
- Donor and donation growth
- Donor retention rate
- Fundraising ROI
- Donation conversions by channel
- Website page views
- Email open and click-through rates
- Landing page conversion rate
Update Your Website Content
If your website traffic has fallen off, the new year is a great time to think about a website makeover.
Color and web design trends change frequently, so it’s essential to stay current to attract and keep visitors returning to your website.
Is your website ADA-compliant? Make sure your website is easy to navigate for seniors by creating lots of white space and using sans serif fonts. And don’t forget to check your website’s responsive design elements, which means your website should be easy to read on any device, especially mobile devices.
Finally, make improving your SEO skills and using relevant keywords and tags to rank your website higher in search engines one of your new year’s resolutions.
Research Low-Risk Financing Options
When you apply for a loan, such as a traditional bank loan, you may encounter some hesitation or even resistance on the lender’s side. That’s because nonprofit organizations can’t guarantee regular revenue like for-profit businesses. When banks offer loans to nonprofits, the terms are typically stricter, with higher interest rates and credit score requirements.
You can find financial institutions and credit unions willing to offer loans for nonprofits. However, you should expect to have to declare a specific use for the loan funds and put up collateral or a personal guarantee.
There are also alternative lenders specifically dedicated to nonprofit lending—some may even be nonprofits themselves. These lenders are called CDFIs or Community Development Financial Institutions. CDFI lenders include banks, credit unions, loan funds, microloan funds, and venture capital providers who support nonprofits to help revitalize neighborhoods across the country.
Besides these term loans, which require predetermined monthly payments over several months to years to pay back, nonprofits get most of their financing through fundraising and government grants. Unfortunately, fundraising can vary widely, and government grants have lengthy application and approval processes. When cash flow is low and working capital needs are high, a nonprofit organization may want to look into a nonprofit line of credit to help make ends meet.
Nonprofit Line of Credit
A nonprofit line of credit is a short-term loan supporting a nonprofit organization’s daily operations. Funds from a nonprofit line of credit can be used for various needs, including repairs, small equipment purchases, project supplies, and staff members’ salaries when payroll funds are low.
Like business lines of credit and a credit card line, a nonprofit line of credit is a revolving credit line, which means the loan funds are available when the organization needs them. Then, when the money is repaid, the funds are available again. In addition, fees are typically only charged on the money that has been withdrawn. Once the credit line is restored, the borrower pays nothing until their next withdrawal. If you want a line of credit for your nonprofit, don’t hesitate to reach out to Financing Solutions, a leading provider of business loans for nonprofits in the form of a 501c3/not-for-profit line of credit, for your nonprofit financing.
Add Virtual and Hybrid Fundraising Events to Your Calendar
To keep their 501(c)(3) status, nonprofit organizations must obtain at least one-third of their revenues from fundraising from individual donors, businesses, and other public charities. In an uncertain economy (and with nervous consumers), adding virtual and hybrid fundraising events make sense to ensure donations continue to flow in.
Virtual fundraising ideas are only limited by the event coordinator’s imagination. The key is to use professional fundraising software and live streaming technology to make the event a success and promote it all over social media. Viewers should be able to interact online, as well as quickly (and securely) donate to your cause. Some ideas for virtual fundraising include virtual auctions, happy hours, speakers, entertainment, and virtual walks or other challenges.
Creating virtual events also cuts down on the costs of staging an in-person event. You can use your nonprofit line of credit to purchase the equipment needed to create and stream a virtual event.
Take Advantage of Resources Available to Nonprofits
Before applying for financing, create a budget so you know the exact amount of money you need to borrow and how you plan to pay the loan back. For everyday funding needs, a nonprofit line of credit may make the most sense if you want a reasonable interest rate without putting up collateral.
With the Financing Solutions Nonprofit Line of Credit, nonprofit organizations always have the benefits of a more straightforward application process, plus:
- There are no costs to set it up or keep it in place
- There’s an easy 2-minute application online application
- If approved, you’ll receive a same-day, no-obligation offer letter
- The fastest setup, 48-72 hours
- Once you get the line of credit, requests for funds are wired to your bank in minutes
- You can use your line of credit whenever needed
- Inexpensive when used (low fees)
- There are no restrictions in place or collateral required
- No personal guarantee is required, either
- Financing Solutions is a leading provider of lines of credit
- We are a reputable company with an A+ & 5-star rating
- You can pay off the line whenever you are ready
- The credit line renews yearly and is easy to renew
- You have a secured account portal access 24 x 7
A nonprofit line of credit is a good funding resource that’s available whenever your nonprofit needs it, without the heavy burden of term loan requirements. If you want to see if your nonprofit organization would be approved and for how much, please fill out the no-obligation, 2-minute line of credit application here.
