Non-Profits Must Make Money

Non Profits are real businesses and, as such, must make money to do their charitable works.  Many non profit groups, including persons working in them, believe that just doing the work of the non profit is enough to insure continued existence of the organization.  However, this is not the case in the real world.  A non profit is in reality a “Community Service Corporation”.  When viewed in this light, there are many areas common to for profit businesses.  The table below illustrates both similarities and differences to give better clarification. 

 When viewed a business, it is helpful to view the following tasks in light of the necessity to make money.

• Plan – Both Strategic & Tactical
• Raise Funds (money)
• Write and Obtain Grants
• Keep Records
• Market & Sell both services and value to the community
• Manage Programs
• Manage Volunteers & Staff

One method to help the non profit is to develop a business plan including a detailed cash flow projection.  Why do a business plan for a non profit?  Because it forces a critical, unemotional perspective of the non profit and it helps keep the organization focused.  The business plan is a written document that includes:

• an executive summary of the plan.
• a description of the non profit business.
• a description of the non profit service offered.
• a detailed marketing and fund raising plan.
• a detailed financial plan.

How can a non profit get help in developing a business plan for their specific non profit?  One way is to take advantage of the services of Silicon Valley SCORE (svscore.org).  Our non profit, consisting of volunteer business executives, provides free counseling and low cost business seminars for both for profit businesses and for non profit businesses.  See more about our Non-Profit seminars by clicking here.