Looking at Your Non-profit as Business Enterprise
While there is not a lot I can do about the government other than to encourage folks to
vote and vote intelligently, there are several things non-profits can do about fund raising.
One of the sources that I want to address today is the development of business enterprise. Business enterprise can provide significant funding to a non-profit and in fact the non-profit I spent sixteen years with before my second retirement realized in excess of 50% of their total revenue from the business enterprise that we had developed.
Generally speaking, most non-profits are focused on the purpose or mission statement of the non-profit, as they should be, and may not possess the skill set to pursue a business that would provide them with revenue to support the core purpose of the non-profit.
When one looks at the idea of developing a business under the umbrella of a non-profit one should always seek council on the topics of:
Legal aspects of how it should be set up to keep the revenue tax free for the use of the non-profit
Accounting aspects of providing the proper non-profit reporting while at the same time providing operational reporting that allows management to maximize the effectiveness of the business.
Finally – the formation of the business itself. When, Where, How and who should oversee it.
As an example – upscale thrift stores are a very popular source of tax free revenue for non-profits. If done correctly and managed correctly an upscale thrift operation can repay your investment in one and a half to two years and produce significant revenue for the non-profit long term. There are many non-profits that have an entire chain of thrift operations producing hundreds of thousands of dollars to support the core functions of the non-profit.
Campbell, Smith & Associates
Stay tuned... Next post: The Basic 15 Steps to Starting a Thrift Store