How-to

The grant application process can often seem daunting, especially for those who are new to it. At its core, this process involves a series of steps that organizations or individuals must navigate to secure funding for their projects or initiatives. Understanding the nuances of this process is crucial, as it can significantly impact the likelihood … [Read more...] about What is the process of applying for a grant as a nonprofit?

In an increasingly competitive landscape, organizations—be they non-profits, educational institutions, or social enterprises—are recognizing the critical importance of diversifying their funding sources. Relying on a single stream of income can be perilous; it leaves organizations vulnerable to fluctuations in that particular funding source, … [Read more...] about How can nonprofits diversify their funding sources?

In any organization, the identification of conflicts of interest is a critical first step in maintaining integrity and trust. A conflict of interest arises when an individual's personal interests—whether financial, familial, or otherwise—interfere with their professional responsibilities. This can manifest in various forms, such as a board member … [Read more...] about How do nonprofits handle conflicts of interest on their boards?

Nonprofit capacity building refers to the process of enhancing an organization’s ability to fulfill its mission effectively and sustainably. This concept encompasses a wide range of activities aimed at improving the internal structures, systems, and processes that enable nonprofits to operate more efficiently. Capacity building can involve various … [Read more...] about What is nonprofit capacity building, and why is it important?

In the realm of social programs, businesses, and various initiatives, the terms "impact" and "effectiveness" are often used interchangeably, yet they embody distinct concepts that are crucial for understanding the success of any endeavor. Impact refers to the broader, long-term changes that result from an initiative, encompassing both intended and … [Read more...] about How does a nonprofit measure impact and effectiveness?

A capital campaign is a focused fundraising effort designed to raise a significant amount of money within a defined period, typically for a specific project or purpose. Unlike annual fundraising drives that aim to cover operational costs, capital campaigns are often geared toward large-scale initiatives such as building construction, major … [Read more...] about What is a capital campaign, and when should a nonprofit consider one?

At the heart of any successful nonprofit organization lies a compelling mission that resonates with its audience. A strong mission serves as the foundation upon which all activities are built, guiding the organization’s strategies and decisions. It is essential for nonprofits to articulate their mission clearly and passionately, ensuring that it … [Read more...] about How can a nonprofit attract and retain donors?

Financial sustainability is a cornerstone of any organization, particularly for non-profits and community-based entities that rely heavily on external funding and donations. It encompasses the ability to maintain financial health over the long term, ensuring that an organization can continue to fulfill its mission without interruption. Achieving … [Read more...] about What are the common challenges faced by U.S. nonprofits?

In the contemporary landscape of philanthropy, nonprofits are increasingly recognizing the transformative power of social media as a vital tool for outreach and engagement. The digital age has ushered in a new era where traditional methods of fundraising and awareness-raising are being supplemented, and in some cases, replaced by online strategies … [Read more...] about How do nonprofits use social media to increase awareness?

Liability insurance serves as a crucial safety net for businesses, shielding them from the financial repercussions of legal claims arising from injuries or damages caused to third parties. This type of insurance is essential for any organization, regardless of its size or industry, as it provides coverage for a wide array of potential liabilities. … [Read more...] about What types of insurance should a nonprofit carry?

In the realm of nonprofit fundraising, ethical guidelines serve as the bedrock upon which trust and credibility are built. These guidelines are not merely suggestions; they are essential frameworks that govern the behavior of organizations seeking to raise funds for their causes. The importance of these ethical standards cannot be overstated, as … [Read more...] about What are the ethical guidelines for nonprofit fundraising?

At the heart of any successful organization lies a clearly articulated mission and vision. The mission statement serves as a guiding star, encapsulating the core purpose of the organization and its fundamental reason for existence. It answers the essential question of why the organization was created and what it seeks to achieve in the broader … [Read more...] about How does a nonprofit create a strategic plan?

Nonprofit organizations play a crucial role in shaping public policy and influencing the political landscape. While their primary mission is often centered around social, educational, or charitable objectives, many nonprofits find themselves navigating the complex waters of political engagement. This engagement can take various forms, from … [Read more...] about What are the rules for political activities for nonprofits?

The legal structure of an organization serves as the backbone of its operations, defining its identity, responsibilities, and the framework within which it functions. Typically, organizations can be classified into various legal forms, such as non-profit entities, for-profit corporations, or governmental agencies. Each structure comes with its own … [Read more...] about How do foundations differ from other nonprofit organizations?

Financial oversight and management are critical components of any organization, serving as the backbone for sustainable growth and operational efficiency. This process involves the systematic monitoring of financial activities, ensuring that resources are allocated effectively and that expenditures align with the strategic goals of the … [Read more...] about What are the responsibilities of a nonprofit treasurer?

Navigating the corporate landscape requires a nuanced understanding of the various dynamics at play within the business world. This environment is characterized by a complex interplay of competition, collaboration, and innovation, where companies must continuously adapt to shifting market conditions and consumer preferences. The corporate landscape … [Read more...] about How can a nonprofit establish partnerships with corporations?

In-kind donations represent a unique and invaluable form of support for nonprofits, transcending the traditional monetary contributions that many organizations rely upon. These donations encompass a wide array of goods and services provided to nonprofits without any expectation of financial compensation. Unlike cash donations, in-kind contributions … [Read more...] about What is “in-kind” donation, and how do nonprofits use it?

Nonprofit organizations play a pivotal role in addressing societal needs and fostering community development. Unlike traditional businesses that primarily focus on profit generation, nonprofits are established to serve a specific mission or purpose, often aimed at benefiting the public or a particular group of individuals. This unique structure … [Read more...] about How are nonprofits structured legally in the U.S.?

The Internal Revenue Service (IRS) plays a pivotal role in the landscape of nonprofit organizations in the United States. IRS recognition is not merely a bureaucratic formality; it is a crucial designation that allows nonprofits to operate effectively within the legal framework of the country. This recognition grants organizations the ability to be … [Read more...] about How does a nonprofit apply for IRS recognition?

Nonprofit endowments represent a crucial financial mechanism that allows charitable organizations to secure their long-term sustainability and operational viability. At its core, an endowment is a fund that is invested to generate income, which is then used to support the mission and activities of the nonprofit. The principal amount of the … [Read more...] about What is a nonprofit endowment, and how is it managed?

Establishing a robust donor base is fundamental for any organization seeking to sustain its mission and expand its reach. A strong donor base is not merely a collection of individuals who contribute financially; it represents a community of engaged supporters who believe in the cause and are willing to invest their resources, time, and energy into … [Read more...] about How can a nonprofit increase its fundraising effectiveness?

Annual reports serve as a vital communication tool for nonprofit organizations, encapsulating their activities, achievements, and financial health over the course of a year. These documents are not merely a formality; they represent a comprehensive overview of the organization’s mission, vision, and the impact it has made within the community it … [Read more...] about What is an annual report, and why is it important for nonprofits?

Volunteers serve as the backbone of nonprofit organizations across the United States, playing an indispensable role in their operations and mission fulfillment. The sheer volume of volunteer hours contributed annually is staggering, with millions of individuals dedicating their time and skills to various causes. This commitment not only amplifies … [Read more...] about What is the role of volunteers in U.S. nonprofits?

Navigating the intricate landscape of tax-exempt status is crucial for organizations seeking to operate under the auspices of the Internal Revenue Service (IRS). The IRS delineates specific criteria that must be met for an organization to qualify as tax-exempt, primarily under Section 501(c)(3) of the Internal Revenue Code. This section is reserved … [Read more...] about How can nonprofits avoid jeopardizing their tax-exempt status?