Financing for Nonprofit Organizations
Yes, financing for nonprofits organizations can be hard to come by, but thankfully you do have options. A financial crisis is sometimes like fireworks. Even as they are exploding, they light up the sky. In other words, look closely at your current financial difficulties. You will see that they are shining a light on the true problem and telling you to do something about it.
When you run a not for profit, it can seem like a never ending struggle to make ends meet. Then, when you do, someone moves the darn ends. That’s why you need to learn more about choices in financing for nonprofit organizations to find the one that is right for you.
What You Need to Know about Financing for Nonprofit Organizations
Nonprofit executive directors must be knowledgeable in many areas. This includes 501c3 financing. While you don’t have to be an expert, knowing some of the basics about financing will help you make the most of your resources.
Make decisions based on true cost – estimations and guessing ruins your budget. Carefully compare last year’s numbers to your revenue streams. If you need to make adjustments to gain a greater balance, do so.
You should acquire familiarity with accounting functions – that way you will know what your accountant is talking about. It may be helpful to take an online class or hire someone temporarily to help you. Understanding more about your not for profit finances will put you in a better position to fulfill your mission.
Growth doesn’t just happen – you must make it happen. This takes strategic planning, wise management skills and the right timing. You will also need the right kind of not for profit funding.
Stay ahead of trends that could affect funding – this is how you keep changes from blindsiding you. Laws and IRS rules regarding nonprofits can occur at any time. In addition, there might be a nationwide shift in donor giving patterns, or news stories concerning your industry. It’s important to know about these trends beforehand so that when an opportunity arises, you can strike while the iron is hot.
Use your board members for maximum advantage – after all, they are there to help you. If possible, recruit people with expertise in financing for nonprofit organizations to sit on your board. You should also keep members properly informed of issues that will affect finances. They may come up with solutions you don’t think of.
Financial problems are not inevitable – you can get help from Financing Solutions (www.financingsolutionsnow.com). Most nonprofits don’t realize that there are finance tools that can help them manage the ups and downs of cash flow. That tool is a nonprofit line of credit (LOC).
At Financing Solutions, their LOC costs nothing to set up. In fact, there are no charges until you actually use it. This makes it a great back up plan.
It is easy to get in place and stays in place for one year. Most importantly, there is no personal guarantee (unless in the case of fraud). Every nonprofit should have a LOC, just in case.