Tag Archive for: leadership

The most effective ways to expand visibility and maintain funding in your business.

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On this week’s episode of A Modern Nonprofit Podcast, CEO Tosha Anderson invites Eric Ressler as her guest. Eric Ressler is the Founder and Creative Director at Cosmic, A Social Impact Creative Agency. Eric Ressler expresses his opinions and expertise about, “The most effective ways to expand visibility and maintain funding in your business.” Why do so many social impact organizations struggle to find, grow, and maintain funding? Eric breaks this question down and gives listeners tips to implement in your own processes. What does the future of social impact fundraising look like? Eric goes into the importance of your digital footprint and doing it in an authentic way. We cover why does social impact organizations invest in their digital strategy and platforms? We also hit on why should social impact organizations concern themselves with their brand when it seems like there are more important things to focus on? Finally why is the overhead percentage the wrong metric for assessing a social impact organization’s effectiveness? This episode is a wonderful conversation and a must listen.

Reach out to Eric Ressler @ [email protected]

Website: designbycosmic.com

Scaling Your Nonprofit: Moving from a Solo Operating to a Team with Travis Johnson

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Your nonprofit organization is only as strong as its weakest link. And if your nonprofit was previously a solo operation, and now more recently evolving to a team, then you need to know the importance of scaling.

Every nonprofit will have to determine what and when they need to scale itself as an organization. When expanding your organization, you need to consider important points like its infrastructure, budget, team members and even strategy as it relates to your mission. These are so important!

However, “scale” can mean many things. To ensure that you can grow your nonprofit through the most successful way possible, you need to ensure that your organization has certain structures in place that will make for a long-term future you can be proud of.

If you want to learn all there is about scaling your nonprofit, then you need to listen to this episode of A Modern Nonprofit Podcast. In this week’s episode, Travis D. Johnson of the Nonprofit Architect Podcast joins forces with Tosha Anderson of The Charity CFO for an in-depth discussion geared towards board members, charity leaders and aspiring nonprofit professionals.

LISTEN TO TRAVIS AND TOSHA DISCUSS HOW TO SCALE YOUR NONPROFIT HERE. 

On this episode, the two converse about important questions such as:

  • What do nonprofits need to scale so they can get paid?
  • What processes need to be in place in order for this to happen?
  • What is holding nonprofits back from taking these steps?
  • Does this process work for solo operations?
  • And more!

Travis Johnson is this week’s guest on A Modern Nonprofit Podcast!

It’s a great episode for any listener wanting to learn more about reaching your organizational growth goals and how scaling will effectively manage your expansion, if done correctly. You shouldn’t take on the challenges of the nonprofit sector alone! And fortunately, you don’t have to.

Here’s how podcast listeners like you are tackling challenges within the nonprofit sector

We’ve had many new listeners request a free consultation with Tosha and her team of expert, certified public accountants at The Charity CFO after recognizing that their organization’s structure and bookkeeping were in desperate need for improvement across a variety of areas. Our team performs outsourced accounting work for hundreds of nonprofits and we want to walk alongside your nonprofit to help you save money, modernize and truly achieve its mission. Check out our services here. 

Aside from Tosha, Travis Johnson is the current host of The Nonprofit Architect, which is the only nonprofit podcast dedicated to giving you the actionable steps needed to build a stronger nonprofit. He has interviewed tons of nonprofit leaders, business leaders, and consultants in order to help you say no to more work and say yes to more donations. Check out his podcast series here. 

Lastly, make sure you subscribe to both A Modern Nonprofit Podcast and The Nonprofit Architect! Hear something that stood out to you in this week’s episode? Share your thoughts with A Modern Nonprofit Facebook Group, which you can request to join here. There’s hundreds of nonprofit professionals conversing about topics and challenges they face across their organization. It’s one big, exciting think tank. Don’t miss out!

A Beginner’s Guide to Nonprofit Budgeting

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Nonprofits are not run to make money. But they do make serious progress.

More than 1.5 million nonprofits are registered with the IRS. They contribute more than one trillion dollars to the economy. One-quarter of American adults volunteer with a nonprofit, helping their community on a number of issues.

You will make a difference as soon as you start a nonprofit. But you can make a real difference if you understand nonprofit budgeting.

However much money you have, you need to know how to allocate it into worthwhile projects. There are a few things you should understand in order to do that. Here is your quick guide.

Distinguish Nonprofit Budgeting From for-Profit Budgeting

You may have experience in budgeting and accounting for for-profit organizations. That will help you when budgeting for a non-profit. But you should know that there are substantial distinctions.

For-profit businesses are accountable to their investors. They have a lot more autonomy accordingly. As long as they are within the bounds of the law, they can take any measures they need to make money.

A nonprofit organization is accountable to anyone who donates to it. They must report how they use their funds, then they must hold to their word.

For-profit organizations distribute their profits to their investors. Nonprofit organizations must reinvest their profits into themselves. They can pay for full-time employees, but all profits must be built for the greater good in some way.

Nonprofits are exempt from paying taxes on their funds. This makes tax forms far easier. But they are liable to payroll taxes, just as for-profit groups are.

Break Down Your Budget Components

Your budget as a whole should allocate resources for all operations. You will make clear how these resources are allocated in several ways.

The nonprofit budget is actually two separate documents. The operating budget shows what the projected revenue of the year will be. It also logs the expenses of the entire organization.

All nonprofit funding streams should be defined. When possible, the budget should list the names of donors. This helps with donor management and transparency.

You should also distinguish your different expenses. You incur both program and overhead costs. List out every cost there is, even small ones.

While the operating budget looks at one year’s financial picture, the capital budget looks long-term. It projects what the future expenses and revenue will be, given the track record of ongoing and multi-year projects. This helps executives strategize.

Every budget component should correspond to a specific activity. If there is an unnecessary cost, it should be cut out. If there are leftover expenses, those should be used in some way.

Conceive the Budget Itself

The process of making the budget should begin early on. The board of directors should discuss, debate, and approve the budget before the start of the fiscal year.

Start by negotiating a timeline with the board. Make sure you have time to write it out, but you should leave enough time for them to discuss it.

Agree on what the budget template should look like. Have the board give you the budgeting resources that you need. This includes money set aside for professionals to look over your work.

Review all relevant financial documents, including last year’s operating budget. If there is any variance between actual revenues and projected ones, understand why that is the case.

Take time to do your research. Talk to the nonprofit’s accountants and external financial advisors.

Develop several drafts of your operating and capital budget documents. Ask other budgeting experts to oversee your work. Take their suggestions and make edits accordingly.

When you have a good final draft, deliver it to the board of directors. If you can sit in on their meetings, do so. Answer their questions and ask new ones about what the future of the company will look like.

Run Budget Reviews

Budget reviews are essential components of a nonprofit’s financial life. Because nonprofits must put all revenues back into the organization, budget reviews are check-ins to ensure that this is being done.

You should conduct a personal review every week. You should check to make sure all financial goals are being met, especially with funding. If your nonprofit is using too much money, it will run into trouble.

You should then conduct a teamwide review every month. All of you should look over the finances for the month.

You should examine the balance between budgeted and real-world expenses. Your team should take note of all discrepancies so future budget components fall in line.

You should also conduct quarterly reviews. This is when you review the entirety of the budget. You can track previous discrepancies and see if they line up with actual revenue streams.

An annual review loops other relevant parties into your nonprofit’s financial picture. You should tell the CEO how the budget stayed on course over the last year.

The two of you can talk about program outcomes. If something did not work, you can cut it or adjust its funding. Use their oversight to adjust the budget for next year.

Know About Nonprofits

Nonprofit budgeting is important to your nonprofit’s financial footprint. Whatever experience you have with for-profit budgeting, put that aside. You need to report how all of your funds are used to support your cause.

When making a budget, be as specific as possible. Distinguish between real and projected expenses and revenues.

Take time drafting out your budget. Set clear terms and expectations with the board of directors. Then run several budget reviews, including an annual one with the CEO.

Get the support you need to make a difference. The Charity CFO offers premium budgeting resources for nonprofits. Contact us today.

How to Create Value-Driving Reporting Metrics

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There are around 1 million nonprofits in the United States. Many of them struggle creating value-driving metrics.

The vast number of nonprofits shows how difficult it may be to find funding if you are considering a nonprofit. You may realize that in order to succeed as a nonprofit, you need to find resources and people who are interested in contributing to your cause.

Another study stated that around 30% of nonprofits failed after 10 years. With such a high risk of failure, it’s important for nonprofits to figure out how to be successful.

Part of nonprofit success is dependent on reporting metrics. Value-driven metrics are what current and potential funders might be interested in when looking to fund your nonprofit.

Here are some key reporting metrics you need to keep an eye out for if you want to attract funders. Ultimately, this is how you create value-driven reporting metrics.

Return on Investment: Creating Value-Driven Metrics

One of the most critical reporting metrics is the return on investments. This is your ROI and how much you are making from your nonprofit.

It’s one of the metrics you can look at and decide how successful it is and if it’s getting the funding it needs to make a difference.

This is where you compare the cost of raising the event and paying for catering and a place to host the event and then compare it to how much was actually raised. You may have broken even, made a profit, or had a loss.

If you want to calculate your ROI for a nonprofit, you would want to divide total costs by total funds raised. This gives you an idea of how much is making from your nonprofit.

It can also give your investors or funders an idea if your nonprofit is successful and attracting interest.

Average Gift Price: Creating Value-Driven Metrics

Another metric to look at is how much a gift is when someone donates to a nonprofit. You want to see how much each gift on average is worth, which gives you an idea of how much people are giving to your nonprofit.

Metrics are important to help guide your nonprofit and your bookkeeping.

You can also see how many gifts in a specific time frame. You may know the average price per gift, but you still need to know how often you are receiving these gifts.

You can also see how many gifts you are receiving from specific donors. This allows you to segment your donors and see what donors in a specific market donate to your nonprofit.

Conversion Rate: Creating Value-Driven Metrics

The conversion rate is how many people actually gave your cause based on how many you asked.

You want to see how many of your target markets is giving to your nonprofit if you asked them over email or set up a link online.

Another way to look at the conversion rate is to see how many people are giving based on your outreach. You want to see how many people are donating on social media, email, websites, referrals, and more.

You can see how many people actually clicked on your link and committed to donating to your cause. You can then measure your conversion rate and compare it to other nonprofit organizations.

Another valuable way to look at the conversion rate is to see what channels provide you the most donors. If you discover that some channels provide more contributors to your nonprofit, it may be best to focus more on your content and marketing on fewer channels that are more successful.

Website Visits: Creating Value-Driven Metrics

If your nonprofit has a website where people can choose to visit and donate, you need to make sure you have Google Analytics are some other measuring tool to see what’s happening on your website.

Funders who are evaluating your nonprofit may look at website visits and see how many people you are attracting to your nonprofit. They will want to see how many clicks you are generating and how many pageviews there are. 

These metrics are important because you want to see if people are engaged with your mission and what you are trying to do in your nonprofit. The better your website is designed and the easier it is to use, the more likely people will hang around longer on your website.

You’ll also want to see if people are specifically clicking on your call to action. Also, you will want to see if they are donating to your cause. This will provide insight on if you need to change the call to action or there’s a general lack of interest in your nonprofit.

Email Marketing Metrics

The final value-driven metric you need in your nonprofit that can give you insight on how to improve any part of your nonprofit is email metrics.

If you have an email list and send emails asking people to donate to your nonprofit, you need to look at the open rate, the click-through rate, and how much you are earning per email.

You want to see if your subscribers are donating based on the emails you are sending. These metrics can give you insight into if you need to make any changes with your emails regarding a subject line or body content.

Now You Know Everything About Reporting Metrics for Nonprofits

Value-driven reporting metrics are a great way to analyze the success of your nonprofit. It can help you determine what changes need to be done. This way, you can attract more investors.

While these metrics can be overwhelming, learning can help you increase funding. You will be able to optimize ways to ensure the success of your nonprofit.

If you want help with your nonprofit, you can contact us here.

Create a Nonprofit Operating Budget

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Are you looking for new ways to keep up with the hustle and bustle of your nonprofit organization? Have you noticed that the bookkeeping is starting to slip by the wayside? If so, then you need to create a nonprofit operating budget and learn how to manage it effectively.

Doing so can help ensure that you’re staying on task. you’ll find yourself with more financial peace of mind after knowing that there’s a specific purpose for every dollar you raise.

See below for an in-depth guide on how to create a nonprofit operating budget to get yourself back on track. Be sure to consider everything that’s listed.

1. Set Aside Time with Your Team to Manage your Budget. 

Perhaps this is the first time that your organization will be addressing the budgetary needs that you have. Maybe it’s been so long since you kept a budget that you need to reassess where you are currently.

No matter the case, it’s important that you set aside time to hash out a new budget with your team. Find a time period where at least one person from each department can offer their input.

For example, if you have an in-house marketing coordinator, be sure to clue them in on your new budget to ensure your marketing needs are being met.

You’ll find that a great deal of this meeting will be compromised. Don’t get discouraged if it feels like you can’t get anywhere at first. It’s all about compromise. Every department will feel like their side of the operations deserves a higher portion of the budget.

If you need assistance with building your budget, then you can also decide to outsource it to a nonprofit accounting and bookkeeping service. If you need help creating a nonprofit operating budget, The Charity CFO is an expert accountant for charities. 

2. Gather Data

You might be wondering to yourself “where am I supposed to come up with the numbers? How would I know how much to budget for marketing, events, fundraising, and so on?”. By looking at the previous data.

They say business is all about learning from the past; building a nonprofit operations budget is no exception.

 

How do you create a nonprofit operating budget? The Charity CFO explains.

Gather up all your bank statements from the checking account you use for your nonprofit’s finances. This might be overwhelming at first, but take a deep breath and give yourself a few weeks/months to comprise all the data (if necessary).

Decide which expenses fall under the umbrella of the different departments of your business, then add them up on a month by month basis. Did you spend more than you raised in previous months? Are you overspending in one area of your organization?

If need be, sit down with each department chair individually to assess the money you spent and the areas in which you could cut costs. This will give you a better idea of the amount you can set for that department’s monthly budget.

Be sure to get input from your board. This budget is a collaborative effort. Accounting for nonprofit organizations can be tricky, so we encourage you to utilize the resources and information we offer! 

3. Plan Your Activities

Nonprofits are all about the activities and events that you both attend and organize for your faithful following. It can lead to some tremendous fundraising opportunities.

However, too many nonprofits design their budget without considering those activities first and foremost. They’re then thrown out of whack when they can’t find the financial room to either attend the event or put on an activity that represents their brand in the right light.

Start by scheduling your activities as far out as possible (preferably a year out). How much money needs to be allocated to those activities? Which ones take priority?

As much as it might hurt, this is a great opportunity to cleanse your schedule of any activities that you aren’t seeing great returns from.

4. Properly Estimate Income

Planning income and expenses for a nonprofit can be challenging, but it isn’t impossible.

First, be sure to list your estimated income if different tiers of risk. This should be prioritized from “least trustworthy” to “most risky”.

For example, say you organize 4 groups for your income sources: group 1, group 2, group 3, and group 4. You might decide that people listed in group 1 are “most trustworthy”, meaning they’re most likely to donate generously and often.

Let the data guide you while you estimate this part of the budget. Put your most frequent sources of funding into group 1, the least frequent in group 4, and so on.

5. Put a Job to Every Dollar

Disclaimer: the job of your budget isn’t to primarily track the money that you spend. It’s to assign a job to every dollar that you raise for your cause.

For example, (for the sake of simple math), say that you budget to receive $1,000 in funds for this upcoming month.

You might consider putting $200 towards donations, $500 towards operations for the month, $200 towards activities and events, then have $100 leftover. This is the wrong way to do it.

You need to budget for all $1,000 in funds that you receive, down to the very last penny. If things change (which they often do), then your budget can be adjusted. Your ability to create a nonprofit operating budget also involves some critical thinking!

What You Can Do Today

Now that you have seen several effective steps that you need to take when building a nonprofit operating budget, it’s time for you to do so the right way.

Be sure to read this article to learn more about how to raise money with virtual events for your nonprofit organization.

And for more inquiries on our ability to be an expert accountant for nonprofits, be sure to reach out by requesting a meeting and we will be happy to discuss our bookkeeping services.

A Modern Nonprofit Podcast: Diversity and Inclusion (S1E1)

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Nonprofit enthusiast and Founder/CEO of The Charity CFO Tosha Anderson is proud to announce the launch of A Modern Nonprofit Podcast. Powered by The Charity CFO, this podcast will take listeners on a journey, as Tosha and her guests talk about relevant topics in the nonprofit sector.

Each episode will feature a lighthearted and informative discussion. Tosha Anderson said A Modern Nonprofit Podcast is a tool like no other for nonprofits of all shapes and sizes.

“While paving my path and finding my footing in life, I have found my true purpose of helping nonprofit organizations do the same,” said Tosha. “Through this podcast, the ability to connect and help so many individuals will only grow, which will make the nonprofit community as a whole stronger. I am looking forward to bringing on industry leaders and participating in conversations that will help my listeners evolve their nonprofits.”

In the inaugural episode, Tosha sits down with Veer Up founder Eileen McGhee to talk all things diversity and inclusion. The two experienced leaders discuss how to define words like diversity and inclusion, then conduct an in-depth conversation about how nonprofits can truly be open to all ideas and views.

This podcast is designed for nonprofit leaders and listeners alike. To truly experience A Modern Nonprofit Podcast, you must do the following:

  1. Listen to the first episode of A Modern Nonprofit Podcast HERE. Don’t forget to subscribe on your favorite streaming service!
  2. Head to The Charity CFO YouTube and subscribe to watch full episodes and snippets from the podcast.
  3. If you’re on Facebook, search “A Modern Nonprofit Facebook Group” to request access to the already-growing online community, where nonprofit leaders discuss strategies, share tips and converse about personal experiences. All are welcome!
  4. Follow The Charity CFO on Twitter, Instagram and Facebook for the latest episode updates, nonprofit information and deals related to nonprofit bookkeeping and outsourcing for your accounting.

 

Curious as to how The Charity CFO could help your nonprofit in terms of financial accounting, bookkeeping or outsourcing? Check out what we have to offer you and request a meeting with us today.