Why It Takes A Business Brain To Rule In The Nonprofit Space
Nonprofits are booming right now. In the US alone, there are something like 1.5 million organizations under that title. And the number is only continuing to grow. But at the moment, a good chunk of the nonprofit space is populated by those without business acumen. Sure, they’ve got a lot of desire and the will to help people. But without business skills, it is difficult for nonprofits to succeed.
Remember, nonprofits still have to compete. It’s just that the competition takes a different form. In the business world, companies compete for profits. But in the nonprofit world, organizations compete for donor cash. And, no matter what you think, there’s only a limited supply of that.
Let’s take a look at some of the business skills that really help people rule in the nonprofit space.
Financially Savvy Ideas To Get Money To Go Further
Businesspeople tend to understand the value of things and money. And, as a result, they’re programmed, almost unconsciously, to maximize bang for the buck. At the moment, about 83 percent of the money charities receive goes back into the projects they do. Another big chunk is spent on advertising and collecting donations. That leaves just a fraction left over to spend on the day to day running of the organization.
Thus, it’s super important to save money on operating costs wherever possible. So what can the average nonprofit do? One idea is to take a leaf out of existing nonprofits, like religious organizations. Churches, for example, get their costs down by buying church seating in bulk. Other religious institutions reduce costs by outsourcing things like printing to an external company. Nonprofit Pro suggests that organizations could save up to 30 percent on their printing costs, just by doing this. You might also want to investigate whether you’re getting so-called nonprofit mailing rates. If you send a lot of literature in the post, this could make a big difference to your bottom line.
Social Media Skills
Anyone who has been in business over the last ten years or so knows the importance of social media. It’s gone from obscurity to an essential marketing tool. Just like regular businesses, nonprofits stand to gain enormously from social media, so long as they use it right. Businesspeople have the skills necessary to leverage social media for full effect.
Take viral content, for instance. Viral marketing is a great way to reach your target audience quickly and cheaply. Perhaps you could start by spreading an entertaining GIF that showcases your goals. Or perhaps you could develop your own infographic, displaying why your cause is important.
The statistics suggest that social media is important for cash flow. 59 percent of people on social media who support charities actually go on to donate money. And right now, about 15 percent of all fundraising efforts made by charities comes through social media channels.
Just as in business, you can use social media to advertise upcoming events for your nonprofit. You can also use social media to attract new talent, this time in the form of volunteers.