Tag Archive for: organization

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!

How Do We Classify Charities?

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You probably know that there are many different charities with many different causes. In fact, you might be the founder or part of the leadership team for a nonprofit yourself!

Nonprofit organizations have a lot of causes and missions. But, we can get even more specific than that.

What Qualifies as a Section 501(c)(3) Organization?

Under Section501(c)(3) and the IRS, there are three main types of charities:

  • Private Foundations
  • Public Charities (most common)
  • Private Operating Foundations

Private Foundations

According to the IRS, the difference between a private foundation and a charity has to do with the financial support it receives. Private foundations usually have a smaller donor audience and generate income from invested endowment funds. Then, they rely on this income to distribute grants to advance the nonprofit work of other organizations. An example of well-known private foundations include the Bill and Melinda Gates Foundation. 

Public Charities (most common)

The most common type of 501(c)(3) is a public charity. Public charities can accept donations. These donations are tax-deductible. In fact, one can donate up to 50% of their income, while corporations/businesses may donate up to 10% before being taxed. Typically, pubic charities are governed by board members. Now, take a second to reflect: are you/are your board members working too hard on your accounting and bookkeeping? Are you, or someone on your board, trying to teach themselves accounting practices and specifics? You shouldn’t be trying to overwork yourself, nor feeling distracted from your mission. We encourage you to view our services and plans for outsourcing your nonprofit on our website, which can be found here.

Examples of public charities include churches, animal wellbeing agencies and educational organizations. What type of organization do you oversee? Share in the post comments of this article!

Private Operating Foundations

The last, and least common 501(c)(3) organization(s), is what we call a private operating foundation. Many see private operating foundations as a hybrid between a public charity and a private foundation. Both private foundations and private operating foundations aren’t criticized as much as other charitable foundations because donors have close ties to charities.

What Current/Future Board Members Need to Know about Charities

Board directors and other nonprofit leaders must be aware of specific laws that they might navigate alongside, or against, when working in the nonprofit sector. An insightful article from Nonprofit Hub outlines some key things your nonprofit shouldn’t do! 

Next Steps for Charity Leaders

If you are ready to enhance, or begin, your nonprofit journey, we encourage you to check out A Modern Nonprofit Podcast, which is a weekly podcast series that The Charity CFO generates to help leaders, like you, maximize your mission. Also, make sure to check out A Modern Nonprofit Facebook Group, a community of leaders and professionals who converse about relevant topics every single day.

What Questions Should Nonprofit Leaders Be Asking?

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“Accounting can get messy. Systematize and document your processes, and delegate to the appropriate roles.”

That was just one of the practical, but necessary, pieces of advice that Tosha Anderson, founder & CEO of The Charity CFO, shared as a guest on the latest episode (No.87) of the Path Podcast.

Hosted by Dr. Patton McDowell, this episode dives into the specifics of nonprofit leadership. Further, individuals in this type of role need a wide range of skills and experiences to be successful.

Discussed in this episode of the Path Podcast

But, no single leader can manage all of the technical aspects of a growing enterprise without help. So, this episode is for any nonprofit leader who is looking to find answers to key questions such as:

  • What important contracts and agreements should you be focused on?
  • Why is it hard for people and your fundraisers to get along?
  • What is the best way to manage the accounting and bookkeeping part of your business?
  • And more!

If you are new in your leadership position, you may not even know where to begin. Fortunately, look no further than this podcast episode to get you started!

Next Steps for Nonprofit Leaders and Listeners

Interested in learning more about Patton and PMA Consulting? Need help identifying your organization’s points of pain? Looking to build a plan to knock them out? Hoping for the resources to help you be at your best? Then you need to check out this Patton’s website. 

Did you realize that your accounting, bookkeeping and financial thought leadership is a point of pain for your nonprofit? Schedule a FREE CONSULTATION with Tosha Anderson and her team here.

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.

Program Outcomes: Measuring The Effectiveness of the Work You Do

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Why is there so much confusion surrounding the term “program outcome?” That’s because nonprofit organizations are often measured by the effectiveness of the work they do.

But, donors, stakeholders, and members of your community may question the processes that not-for-profit organizations implement.

Program Outcomes: Measuring The Effectiveness of the Work You Do Featured in A Modern Nonprofit Podcast

In this episode of A Modern Nonprofit Podcast, Tosha Anderson of The Charity CFO invites Sarah Buek of The IllumiLab to discuss the benefits of measuring success and how mission-minded organizations can foster positive environments. The link to the latest episode is below:

LISTEN TO THIS EPISODE OF A MODERN NONPROFIT PODCAST HERE! 

Many nonprofits are afraid to define and measure outcomes because the truth may reveal something a board member or nonprofit leader is afraid to know. While the work your nonprofit may do is hard to define, Sarah suggests many tips and tricks to help your organization find a method to measure your processes.

Some of the tips discussed on this podcast include:

  • Defining success and understanding failure
  • How nonprofits can take risk
  • Knowing how failure can be beneficial
  • Understanding your not-for-profit’s data
  • Balancing pressure from donors and from society at large
  • And more!

Communicating your nonprofit’s value and telling your story is so important in the world we live in. That’s why you must understand how to report and measure your organization’s processes. There is a lot of data at your fingertips, now it is time to learn how to gather, measure, and utilize it to help your non profit maximize its mission. Measuring the effectiveness of your organization is simple if you utilize program outcomes.

You don’t need technical expertise. In fact, you are already probably measuring a lot of the outcome measurement points you might think you are seeking. That’s why you need to listen to this episode and subscribe to future episodes of A Modern Nonprofit Podcast.

To learn more about Sarah’s work in the nonprofit sector and how her organization helps nonprofits increase effectiveness and efficiency, check out this website.

Do you realize one of the ways you can improve your nonprofit accounting is by hiring an expert nonprofit accountant and bookkeeper? Read through the services offered by The Charity CFO and request a FREE CONSULTATION. We can help you define nonprofit bookkeeping success and save you money.

And, did you enjoy this podcast? Keep the conversation moving by joining A Modern Nonprofit Facebook Group today. Converse with nonprofit leaders and enthusiasts, and get access to exclusive information from throughout the industry.

How to Create a Business Plan For Nonprofits

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Is it time to create a business plan for your nonprofit?

If so, you need to consider what your service is. You also need to consider what your goal is for your business.

When it comes to creating a nonprofit, you still need a business plan. You need something that is going to guide your nonprofit. You need something that is going to tell you what your goals are, what marketing strategies you need, who your target audience is, how to file taxes, and more.

A business plan for a nonprofit is absolutely essential because it will tell you how to start and succeed in your organization. It means you have a plan to help people.

Creating a business plan for your nonprofit is easy if you follow these steps!

However, in order to be a successful nonprofit, you need to know everything that goes into a business plan.

Here’s a guide on the specifics on how to create a business plan for a nonprofit.

Creating a Business Plan, but Research First

The first part of starting any business is doing your research. Part of your research is figuring out what kind of nonprofit you are going to be.

 

You’ll need to create a mission statement and figure out your nonprofit is going to be unique from others.

Along with your research, you should fill out nonprofit tax forms. You need to figure out how to file for tax-exempt status since you are operating as a nonprofit.

Another part of your research is seeing if you need limited liability protection. If you are a director or operator for a nonprofit, you don’t want to be liable for any debt accumulated by your nonprofit organization.

Your Executive Summary

Another part of a business plan is the executive summary. This is exactly what it sounds like, a summary of your entire business plan.

It’s what your nonprofit will be made up of. Your executive summary should include a mission statement, what your goals are, what your past history is, and what makes your nonprofit different from others.

It’s a full overview of everything you plan to do in your nonprofit.

What Your Program Is About

A business plan can also share what your beliefs are, specifically what your mission statement is.

It’s what makes you distinguished in your nonprofit. You are figuring out what you are working towards as an organization, what you are trying to help out in.

When you figure out what your purpose is as a nonprofit organization, it can help you clarify it in your business strategy. Your business plan discusses the ways you will promote and grow your nonprofit.

It should be a detailed plan on how you plan to help those in need, the community, or whatever your program is going to be doing.

Your Marketing Strategy

Another part of your business plan is your marketing strategy. This is how you plan to reach your target market and promote your nonprofit so you can find donors.

Your marketing strategy should be a detailed plan on how you plan to find and ask donors for funding.

When you create a marketing strategy that you have in your business plan, you need to make sure it’s very concise. For example, you want to make sure you know everything about your donors.

You want to know how you are going to target them on social media and why your posts should be relevant to them. You should also consider having a detailed email marketing strategy. When you do send out emails, you want to make sure that it resonates with your target market.

Finally, you need to consider if your website is up to date and is producing clicks and conversions. These are all elements you need to have in your business plan.

Financial Plan

Another critical part of a business plan for nonprofits is a financial plan. You want to makes sure that you know how much funding you need to make a profit.

You also need to know how much funding is required to get your nonprofit off the ground. This is where you may need to hire an accountant or someone who works with nonprofits on a financial plan.

A financial plan is important because it’s what makes or breaks your nonprofit. If you don’t receive enough funding, you don’t have enough to create fundraisers or events. You need a financial plan that is detailed and going to guide you when you figure out how much to spend on marketing, your employees, and creating events.

Your Organization Team

The final part of your business plan is your organization team. You want your plan to include who you are going to hire to help you with your nonprofit.

You may need employees for events, a marketing coordinator, an accountant, and other staff to help make your nonprofit successful.

You want to make sure you know who you are going to hire because it helps you stay on budget. You also know what roles are needed that are crucial to any nonprofit and the many functions there are in a nonprofit.

Now You Know Everything About Creating a Business Plan for a Nonprofit

Creating a business plan for a nonprofit is a lot of work, but it’s ultimately worth it. If you don’t create a plan and just want to wing it, there’s a much higher risk of failure.

With this guide, you now have a better idea of what it takes to create a business plan. You have an idea of what you need to get your nonprofit off the ground and give it the highest chance of success.

If you need help with your nonprofit business strategy, you can contact us here.

The Insider’s Guide to Bookkeeping Services For Nonprofit Organizations

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Bookkeeping includes invoicing, employee payroll, financial reporting, and more. Is your nonprofit interested in using bookkeeping services? You’re in the right place.

Affordable bookkeeping services for nonprofits are crucial for ensuring financial stability and accuracy. Keep reading to learn exactly how nonprofits can benefit from outsourcing bookkeeping.

What Are Bookkeeping Services?

Bookkeeping and Accounting may be used interchangeably, but they’re very different. Bookkeeping is focused on cash flow for an institution while accounting is basically analyzing all of that data. This helps assess the overall financial health of the organization.

Nonprofit organizations have many financial needs like any business. They have to file complicated taxes, certify for tax-exemption status, and report out. They also have to track donations! This can be a lot for a small staff to handle.

Bookkeeping services are handled by a team of professionals who have experience in the field with nonprofits. Many of these experts have worked with religious organizations, foundations, and even museums. They use software and knowledge of financial trends to help your nonprofit succeed.

Why Should I Use Bookkeeping Services?

There are many reasons to outsource bookkeeping. In addition to being safer and more secure, it enables you to focus on your organization’s mission.

Get Auditing Assistance

Nonprofits typically undergo an annual audit, unlike many other industries. This is time-consuming for the bookkeepers and accountants at the institution.

Save time and money by using bookkeeping services. These services can ensure that your organization is reporting accurate information to the Internal Revenue Service. They can also ensure that your institution is in a state of financial health.

Auditing involves a complex analysis. It also involves finding records of all transactions and donations for an organization. Some nonprofits choose not to do this because of the workload. However, completing annual audits shows donors that your staff is committed to transparency. This can help secure future funds and help with grant applications.

Avoid Fraud

No one wants to talk about the possibility of fraud, but it can happen within the nonprofit world. Embezzlement is also a risk, especially with multiple employees in the finance department. If there aren’t checks and balances in place, tracing money can be difficult.

Luckily, outsourcing bookkeeping services can ensure integrity for your nonprofit. These highly-skilled bookkeepers know exactly what to look for to avoid fraud and can easily identify issues. That way, the issues are caught before they become harmful to the organization.

For example, bookkeepers can see double payments or cash from a new vendor. Maybe they see a sudden increase in payments. They can even comb through documents that appear to be backdated or have questionable signatures. These can be indicators that something fishy is going on at the organization.

Since they manage all documents, data, and cash flow, professional bookkeepers add a level of security to the institution. As a third-party entity, bookkeepers can help your organization stay safe. This ensures security for your nonprofit.

The typical organization loses 5% of it’s annual revenue to fraud. That can be a lot if your organization is a multi-national nonprofit. Avoid lost revenue by using an outsourced bookkeeper.

Get Tax Filing Assistance

For nonprofits to earn their 501(c)(3) status and tax exemption, they have to be transparent. This means complete accuracy with the IRS on all financial matters. This includes strategic and accurate bookkeeping to provide easy filing when it is needed.

Nonprofits can have many revenue streams, including tax-deductible donations, membership dues, and even ticket admissions. Getting everything organized for tax season can be really complicated.

Bookkeeping services are useful because they use software that organizes all records perfectly. These professionals can also help identify areas to lower expenses for your organization. That way, you can reap the most benefits of the money your organization receives.

Using a dedicated bookkeeper absolutely makes this a seamless experience. This reduces stress during tax time for the nonprofit staff. Instead, it gives you the time to work on your mission and serve the community.

Save Time and Money

Instead of spending time organizing receipts, invoices, and payroll, handoff those duties to an expert. Your staff can then spend more time executing your mission.

In 2013, nonprofits paid $634 billion in wages. Hiring and training new employees, even if they’re very talented bookkeepers and accountants, can take a lot of time and energy. Instead, spend that manpower and resources on finding an outsourced financial services business.

Once your outsourced bookkeeper is set up, it requires very little management on the nonprofit’s side.

Bookkeeping Software Is More Accurate

Your organization might not have the funds to have a full-time bookkeeper and bookkeeping software. Luckily, an outsourced bookkeeping service has those resources for you to benefit from.

Bookkeeping software makes everything much more accurate. There is so much room for error when a team handles financials by hand or in a simple Excel sheet.

Avoid that hassle by investing in affordable financial services.

Ready to Outsource Bookkeeping Services?

Now that you know the many benefits of using an outside service, request a meeting with us to get started.

Pretty soon, your nonprofit’s bookkeeping services will be a breeze.

Our dedicated and experienced team works with an array of nonprofits. Many of our clients have been able to expand their impact on the community due to our financial help.

Check out our blog for more information on how our nonprofit financial services could work for your organization.