Managing a Nonprofit Includes Having Business Financing Set Up
Baseball great Tommy Lasorda said, “Managing is like holding a dove in your hand. Squeeze too tight and you kill it, not hard enough and it flies away.” Managing a nonprofit is similar.
Managing a nonprofit is hard and you must learn why the right fast business financing can make all the difference.
The Challenges of Managing a Nonprofit
While a nonprofit business is a business first, there are still some issues that are exclusive to you. Getting a handle on these challenges can help you ask better questions and put you on the right path.
One area where nonprofits get in trouble is accepting the wrong funding sources. Before pursuing a government grant, you must be sure you have the resources needed to run it and can handle any accompanying administrative burdens.
The difficulties in getting a 501c3 loan can also make the going tough. These days, banks are simply not willing to take the risk in lending to nonprofit organizations. They expect you to have tons of collateral and an exceptional credit score.
When Managing a Nonprofit
In the world of nonprofits, funding can be limited and uncertain. A strategic funding source, like Financing Solutions, can help reduce uncertainty.
With help from Financing Solutions, you can build a buffer against instability with reserve funds. They can provide you with a nonprofit line of credit or cash advance to help with financial planning.
When you know where your business financing is coming from, you can worry less about cash flow and focus on fulfilling your mission. Best of all, they work with not for profits on a consistent basis. Many nonprofits turn to them again and again to even out cash flow and get back on track.
Tips for Managing Your Nonprofit Finances
There is no one-size-fits-all solution for managing a nonprofit. Having the right amount of nonprofit business funding can help make things easier. However, once you get the money, you have to make smart choices in what you do with it.
For one thing, your financial manager must have a seat at the table when creative ideas are being discussed. Too many nonprofits make the mistake of using the finance officer as only a compliance director. They are relegated to tracking spending, making budget cuts and balancing the books. Allowing your financial leadership to be involved in all aspects of your business can introduce new strategies and perspectives you may not have considered before.
You should also strive for transparency. Of course, you can’t share all your financials with the world,but you can give vital information to your leadership team. This lets them know how their individual contributions are affecting your bottom line.
The most important part of managing a nonprofit is to understand how much it really costs to run your programs and business model. Then, realize you can turn to Financing Solutions for 501c3 financing.
If your nonprofit would like a line of credit that you can use when cash flow is down please visit www.fscreditline.com/np to learn more, to apply and to receive a written offer. A Line of Credit for your nonprofit costs zero to set up and zero until you use it, making it an excellent backup plan.