Many nonprofits rely on government funding to operate or make ends meet, which turns a situation from bad to worse when the government’s check is delayed and they still need to make payroll. This is just one of the numerous hardships facing not for profit businesses all the time.
Some people are under the mistaken impression that everyone who works at a not for profit business is a volunteer. In fact, many people at nonprofits are salaried employees and when a government check is delayed, they may not be paid. Nevertheless, there are options for nonprofits to still make payroll in this situation.
Actions That Can Be Taken When Nonprofits are in Danger of Missing Payroll
The check you were expecting from the government is late…again. Previously, you may have been able to squeeze out just enough to make payroll, but this time is different.
Perhaps a large donation has not come through yet. Maybe there was an unexpected expense you had to pay on short notice. Whatever the reason, you now find yourself without cash on hand and it doesn’t look like that check will arrive in time for you to make payroll.
Fortunately there are alternative lenders, like Financing Solutions (www.fundmypayroll.com), that can help. A cash advance company, Financing Solutions can put money in your account in as little as 48 hours. The process is fast and easy and it only takes a 15 minute phone interview to apply.
After you answer a few questions, you only need to wait a few hours to receive an answer concerning your application. Even 501c3 companies are eligible for this type of instant business financing.
More than 90 percent of businesses that apply for help from Financing Solutions are approved. This is same day business funding you can count on.
The best part about using a cash advance company is that there is no long term commitment and there are no penalties for repaying the money early. Actually, most businesses that receive short term business funding from a cash advance company are able to pay it back in a few weeks or months.
Why Missing Payroll is never an Option at Not for Profit Businesses
For any business, the employees are like the backbone of the organization. They answer the phone, handle customers and key constituents, and help keep everything running smoothly. No small business owner, even not for profit business owners, can do it all alone. And why would you want to? Having employees to manage various tasks frees you up to focus on getting your business to grow and succeed.
When your employees don’t get paid, they are not happy. Miserable employees are ineffective and unproductive. Frankly, you don’t have time to deal with these problems when there are so many other daily issues that require your attention.
Not for profit companies typically face the additional challenge of losing employees to the public or private sector, where salaries may be higher. Finding and keeping top talent is hard enough without the threat of missing payroll.
The Challenges of Working with the Government
While state and federal budget debates and decisions loom large for most Americans, nonprofit companies can sometimes live and die by them. The stroke of a pen is all it would take to drastically cut your budget and knock the wind out of your sails.
Although you may have a long list of annual donors, and people committed to your cause, it is most likely government grants and assistance that provides the bulk of your business funding. Therefore, you may have to continuously lobby and fight to ensure that your issues stay on the front burner and your work is supported. In addition, there is also the mountain of forms to file and 501c3 rules to live by.
Thankfully, Financing Solutions is here to make things a bit easier. In a sea of uncertainty, it can be nice to know that you have one anchor you can trust for quick business financing.