Connect with us

Business

How to Start a Non-Profit?

Published

on

How to Start a Non-Profit?

Thinking of entrepreneurs and multinational organizations, we talk about the humongous profits they have generated since their inception. Flip the coin, and we see a good number of them rendering service to the society by creating non-profits with specific purposes.

Establishing and running a non-profit business is highly rewarding and inspires you to make a meaningful difference in society. It’s a fitting way to give back to your community. In the process, you also stand a chance to receive public and private donations and enjoy tax-exempt status.

However, like any business, starting a non-profit organization demands strenuous effort with utmost dedication and thorough planning. You need todo some groundwork and follow the important steps to successfully combat any challenges that throw up.

Identify the mission

This is the most important step that clearly communicates your non-profit’s purpose. Whatever glaring issues you see in your community, you can put it across in words that inspire action. The mission can serve as a guide to develop and expand your non-profit business. The mission should attract funding sources and key players to join hands for the betterment of society.

Apply for a Non-Profit Status

This should be done at the earliest since it can take a couple of years to get the approval. It’s great to seek legal help from an advocate with a solid background. You should apply for the tax-exempt 501(c)(3) status. You can also apply for federaltax-exempt status only if you meet certain conditions. It’s important to keep all legal requirements in place during the early stages.

Develop Your Leadership Team

Your team of board of directors and volunteers is the driving force of your non-profit set up. This team is the one that supports fundraising and outreach efforts and also provides insights for development.Your board will be responsible for recruiting, board development, training and evaluation to ensure long-term success. Having independent members helps guard against misuse of charitable assets and prevents a conflict of interest.

Create a Website with an Online Donation Page

A website for your non-profit is a powerful marketing tool that can attract numerous visitors who think alike. It’s important to give specific information about your organization and future plans and developments.An online donation page can kick start your fundraising campaign immediately and proves to be effective in the long run.

Legally Incorporate Your Non-Profit to Begin Operations

This is crucial as incorporating your non-profit with a specific structure gives credibility to services rendered. Importantly, it limits the liability of your team members and board of directors. Your business can produce organizing documents and governance policies to the IRS.

Find Local Partners for Support

Identifying and tying up with local partners within your community can do wonders for the business and society. The local network builds your brand’s reputation and keeps the momentum going. They will particularly be important for outreaching activities and to unlock potential donors. These can include:

  • Local businesses
  • Other non-profit organizations
  • Municipal offices in the locality
  • Schools and colleges in the surroundings

Secure Initial Funding

Finding fundraisers and attracting grants can be a major challenge during the initial stages. Your team and the local network play a prominent role in helping your non-profit secure initial funding. It’s also important to educate your team about the grant writing process. Do thorough research and follow the steps of grant writing.

You have to identify grant opportunities and refine your goals and strategy before going ahead. Having a powerful case for support can be an added bonus to attract donors.

Keep Developing Your Brand

Having a brilliant idea to serve society is one thing. Getting people to talk about it and garner their interest is another. Switch gears and encourage your supporters to go all out while you take actions to go viral online. This has to be a continuous process and, it takes patience and creativity to see through.

Get Ready with Annual Reporting Requirements

Since your non-profit is exempt from tax, you have to file form 990 with the IRS. It’s open to public inspection and comprises of the programs & activities, the finances, the policies, the board of directors and other important staff members. You must organize the annual reporting requirements on the lines of your state’s legal requirements.

Plan for Growth

The hard work has paid off. You have successfully kick-started your non-profit venture. But don’t stop there. Plan for the future and make efforts to invest your time and money in your non-profit’s growth and expansion. Develop a blueprint of the plan with specific actions to incorporate to make the process smoother.

You can empower your non-profit with some state-of-the-art tools like:

  • Automated CRM system
  • Advanced digital donations tools
  • Robotic marketing systems
  • Tools for volunteer and member management

Adjust and adapt

Your non-profit’s strategic planning should encourage external professionals to pitch in their ideas and offer suggestions for growth. Down the line, a certain program may no longer serve your purpose. You have to welcome new perspectives and create new events to foster excitement among volunteers and the public. It’s all about adjusting and adapting to the situation and the changing demands.

The Most Common Mistakes Most Non-Profits Commit

Alright, we have gone through a detailed study of the important processes required to be followed in ensuring a successful non-profit venture. However, there are some common mistakes nearly all non-profits are susceptible to. It’s important to be aware of them and take measures to prevent them from haring your non-profit venture. These are:

Poor research and planning

Not planning enough is a sure-fire way to let your non-profit dreams go down the drain. This happens due to a lack of researching and without a clear evaluation of the challenges and sources of funding.

Lack of financial knowledge

Most founders have unrealistic expectations about funding and have no idea about how much it costs, including the source. Not setting up a sound financial system weakens the foundation and cannot sustain itself in the long run.

Assuming it’s easy to start a non-profit

This is a leading mistake most founders commit while planning to start a non-profit. Incorporating a non-profit and applying for exempt status with all the requirements is a lengthy and strenuous process. A logical approach, with unbound passion, is critical.

Not building an effective board

Your board members are the source of influencing and inspiring the public about your non-profit. An ineffective board spells doom for your venture as it fails to draw volunteers and donors; important to ensure success and growth of your non-profit organization.

Not building a strong rapport with donors

What’s the point of all the planning and execution with a strong board of directors if you don’t strike a good relationship with donors? Remember, fundraising is all about building and nurturing a healthy relationship with your donors. You have to stay in touch with them and show gratitude even after receiving funds.

By doing this, you will be able to build a network of donors who will be more than happy to make worthwhile contributions to your non-profit. Also, seek different donors and never stick to just one. You stand a greater chance of raising more funds when you have a network of donors to approach.

Breaking confidentiality

Maintaining your non-profit’s confidentiality is the essence of maintaining the reputation of the organization and of society. By breaking confidentiality, you clearly give a wrong impression to the public and, that can be detrimental to your organization’s success.

Not cultivating board diversity

Your initial board can include your friends and family members. However, creating vacancies only for other friends and relatives can limit expansion possibilities and creates a lack of awareness. Members from diverse backgrounds can bring in distinct skills and varied insights to ensure success and create better awareness in society.

A Final Word

Just like for-profits businesses, non-profit setups too face several challenges. Tasting success takes time and, the support you expected isn’t overwhelming initially. However, it’s important not to let discouragement take over your dreams and potential goals.

Take all the time required to organize your plan and keep a checklist of the measures critical for your non-profit. Do in-depth research, gather extensive knowledge about non-profits and keep an action plan ready for potential challenges that may arise.

Remember, you did not venture into non-profit because it’s easy. The only motto of any non-profit organization is to make the world and the communities that reside in a better place favourable to all.

Now that you have made the decision to start your own non-profit, educate yourself with the entire gamut of the process to initiate, develop and progress towards bigger goals. Be a continuous learner and always seek resources (online & elsewhere) to arm you with the latest insights and procedures. And, always seek insights from other non-profits, including professional advice from those who know the changing needs of society.

Business

Why the future of work hinges on a mutually beneficial employer-employee contract

Published

on

Why the future of work hinges on a mutually beneficial employer-employee contract 1

By Stuart Hearn, CEO and founder of Clear Review, the leader in performance management

It feels like there’s been almost continual talk of the new world of work, and what the future of employment will look like, since the first day of lockdown. It’s true that it was a huge upheaval for many organisations that previously had been resistant to all but the most traditional working environments – nine to five, in a fixed office, with company-issued IT.

That said, the pandemic and its restrictions did not actually introduce a new way of working; they merely accelerated it, on a scale and at a pace no one could have foreseen.

So, in many ways it is less that there has been a change, and more that the change has happened so quickly. Had it continued gradually, then we would have seen more businesses, and managers, adapt slowly to the concept of remote teams as the norm, with all that it entails.

As it is, many leaders have been left with having to recalibrate their approach to feedback and management, while still dealing with the spectre of the pandemic and its threat to business continuity. In the early months, it was perhaps acceptable to allow certain elements of management, such as employee appraisals, to slip. Now, as what was once new becomes normal, this has to be addressed. Why? Because at a time when revenue streams are crumbling, engaged employees are critical in delivering results – one study found that ​“high­ly engaged teams show 21% greater prof­itabil­i­ty”.

Managing changing realities

Employers are therefore having to balance keeping employees engaged with a number of realities which are rapidly changing what we thought the future of work would be.

Firstly, there is remote working. Rolling lockdowns and local restrictions are going to be a short-term constant. Some employees have embraced it; others will feel more removed and under greater stress. It will be up to leaders to identify and address these polar opposites within their own teams.

Secondly, employers need to realise the impact technology, and in particular artificial intelligence, is going to have. Those businesses that were more digitally mature fared better in the early stages of lockdown; as everyone races to complete their own digitisation, employees are going to be faced with a continuous cycle of change. What’s more, while the process of transformation has never been this fast, it will also never be this slow again. That is a bewildering concept, and one that managers need to factor in when handling employees.

It all points to one undeniable – that the employer-employee contract is irrevocably changing.

A new employer-employee contract

What do we mean by the employer-employee contract? This is not the terms of employment; rather it is the mutual understanding that the employee will perform tasks as designated by the employer, at a set place, for a set amount of time, in return for renumeration and adequate support. The support might be the right equipment; it could, and should, include development, whether that’s with formal and informal training, progression plans or ongoing review programmes.

That all worked fine when everyone was in the same office, at the same time, every day. Now that isn’t the case, the old ways of managing, of supporting employees and of helping them develop don’t work. Added to this is the rapid pace of change previously covered and it is quite simple – using what worked in the past will not work in the future.

What employers, and more specifically managers and leaders, need to do is actively change the way they support their teams. The informal chats in the kitchen or between meetings no longer exist, so the monthly one-to-ones are suddenly too far apart to get a true sense of how employees are doing, both in terms of their performance and how they are feeling.

Time to change focus

As part of this, there needs to be a change in the focus, away from what employees are doing and towards what they are producing – so from inputs (such as being ‘in work’ at a certain time and for a set number of hours) to outputs. It is a shift towards a more continuous cycle of review and feedback, and it is two way – rather than having a set meeting, both employer and employee are sharing outputs, progress and feedback constantly. In doing so, employees can start to be measured on how they are contributing to the performance of the business, and their training and development tailored accordingly.

As the way we work has changed, so our relationship with work, in the form of the employer-employee contract, is changing too. As businesses set themselves up for an uncertain future, they need to reassess and realign how their employees are working, and tailor the way workforces are managed and supported accordingly. It is the only way employers will be able to retain and develop their teams to handle whatever comes next.

Continue Reading

Business

What is the Job Support Scheme, and how does it work?

Published

on

What is the Job Support Scheme, and how does it work? 2

By Kate Palmer, HR Advice and Consultancy Director at Peninsula

On 24 September 2020, the Chancellor, Rishi Sunak, announced that after the Job Retention Scheme (JRS) ends on 31 October, employers will be able to benefit from the new Job Support Scheme (JSS). The new scheme will be available for employers from 1 November 2020 regardless of whether they have made use of the Job Retention Scheme or not and will be in place until 30 April 2021.

Under the Job Support Scheme, with further clarification having been released on 22 October 2020, the Government will be able to help employers who are suffering from business downturn as a result of coronavirus restrictions or who have been told to close completely. It is separated into two provisions: JSS (Open) and JSS (Closed).

To access the JSS (Open), employees must work for at least 20% of their regular working hours – in ‘viable’ jobs – with employers covering the wages for those worked hours. For hours not worked, employers will be asked to contribute 5% of employees’ wages while the Government will contribute 61.67% of wages (for hours employees do not work), to a monetary cap of £1,541.75 per month per employee. The scheme will be open to small and medium-sized firms across the UK. However, for large businesses to qualify for the JSS (Open), they will have to meet a financial assessment test to show that their turnover is lower due to experiencing difficulties from coronavirus.

On 9 October 2020, the Chancellor first announced the expansion to the original JSS which is now being referred to as JSS (Closed). From 1 November 2020, all businesses across the UK who are required to close as part of local/national lockdown will receive wage assistance through JSS (Closed) for employees who do not work for a minimum of seven calendar days. A financial assessment for large businesses will, however, not apply. The expansion is being rolled out to run until 30 April 2021 with the Government paying two-thirds of each employee’s salary, up to a maximum of £2,083.33 a month per employee. Employers will not be required to contribute towards staff wages but will have to cover National Insurance Contributions and pension contributions.

For an employee to be entered into either of the two versions of the JSS, they must have been on the employer’s PAYE payroll between 6 April 2019 and 23:59 on 23 September 2020. Which means that a Real Time Information (RTI) submission notifying payment to the employee to HMRC must have been made at some point from 6 April 2019 up to 23:59 on 23 September 2020. The guidance confirms that JSS grants will be paid in arrears to reimburse the employer for the Government’s contribution. Claims can only be submitted in respect of a wage cost actually incurred in any given pay period after payment to the employee has been made, and that payment has been reported to HMRC via an RTI submission.

Claims can be made online from 8 December 2020, and reimbursement will be made every month.

Continue Reading

Business

B2B plays a big role in our economy, but how can it contribute to our recovery?

Published

on

B2B plays a big role in our economy, but how can it contribute to our recovery? 3

By Richard Parsons from True, creative B2B marketing agency, discusses the current state of marketing and looks ahead to what the future might bring. 

The average consumer will likely be unaware that more than half of the companies listed on the FTSE 350 operate purely in B2B transactions. Not only that, but 50% of our economy is generated by B2B transactions and 82% of companies derive some or all of their income from B2B. There is also a global B2B trade surplus, unlike in B2C. The significant conAltribution of B2B is routinely missed but could hold the key to economic recovery.

The famous essay “I, Pencil” by Leonard E. Read, founder of the Foundation for Economic Education, lays out the different skills, materials and jobs utilised in the production of a pencil. An inexhaustive list includes cedarwood from Oregon, logs from California, graphite from Ceylon and clay from Mississippi. The list was so comprehensive that Read even named the lighthouse keeper signalling the ship in and the factory worker sweeping the floor as part of the employment dependant on the pencil.

B2C might dominate brand awareness for obvious reasons, but what is less obvious is it’s inescapable foundations in B2B. These companies play a vital role in our ongoing economic recovery and – drawing on lessons learned during previous economic challenges – here are some of the trends that we expect to play out over the coming months and into 2021.

Below the Line to Above the Line

Even in normal times, businesses tend to place a skewed emphasis on lead generation and brand conversion when they should be focusing on the top of the funnel. Typically, 90% of marketing spend is allocated to short-term lead generation, which translates as telemarketing and mailshots. This balance should be much closer to 50%, with the remaining 50% spent on building brand equity. A shift from Below the Line to Above the Line is essential if brands want to recover well.

Lead-generation tactics do have a role to play. Still, the B2B industry can be guilty of neglecting emotional marketing in favour of rational campaigns, and here they lose their power to attract new interest. The B2B Brand Index Study – the most extensive global study of its kind – established that creative campaigns are 12 times more efficient at delivering business success.

While there are clear differences, B2B and B2C also share certain similarities. For instance, brand awareness among a target audience will always be a fundamental part of securing revenue. A B2B decision-maker will not be as impulsive as a consumer, for example, choosing Coke or Pepsi, but it is still vital that your brand is well known.

This brings us to the Rule of Three – a well-documented concept of brand market share and consumer decision making in a developed market. When looking for the answer to a problem, a prospective customer will have around three known brands that could solve the issue immediately spring to mind as a result of exposure to memorable campaigns and sustained awareness building. Further research will often expand this pool of options to around ten brands, but when it comes to the crunch, one of the original three will win the purchase between 70-90% of the time.

Value for Money

Marketing budgets have been understandably pared back this year. In an April 2020 survey, 90% of respondents said their budgets were delayed or under review. The full economic impact of the COVID-19 is not yet clear, but we are a long way from normal market confidence, and many businesses are increasingly cautious when it comes to allocating marketing spend.

We know that this approach is wrong. According to System1, advertising ability to connect with people remains as strong as before, and media consumption has risen during lockdown. The CPM of Facebook advertising has gone from $1.88 in November 2019 to $0.81 in March 2020. In short, the ROI for marketing spend is better now than before and so those who can spend, should.

Event Budgets

The events industry has clearly been badly hit, with months of planning, investment and time redundant. But seminars can become webinars and conferences can become virtual, and while this is small consolation for a devasted industry, virtual versions are generally cheaper than in-person events. This will leave a surplus of budget previously earmarked for events which means a reallocation of money to other facets of marketing to stimulate new revenues and a better recovery.

Think Long Term. Hold Your Nerve.

Institute of Practitioners in Advertising case studies show that brands that maintain marketing investment in recessions grow 4.5 times faster than brands that cut spend. Those that cut spend also struggle for longer and take five years to recover revenue. A marketing black-out might alleviate damage to bottom lines in the short term, but it will breed serious problems and long-term profit loss.

Of course, many brands will pursue the short-term fix and cut marketing costs, and this presents an opportunity for those willing to be bold. It might not feel like a wise investment as profits tumble alongside the rest of the sector but maintaining or increasing spend will allow brands to outflank competitors and for smaller brands to increase their share of voice and gain ground on more cautious industry leaders.

What’s Next?

It remains to be seen how short-term marketing cuts will pan out in the mid to long term, but changes are indeed afoot. Crises are catalysts for change and, like any crisis, the current one will have winners and losers. Brands that hold their nerve, innovate and invest in their recovery are likely to see the benefit in the long term. The current economic uncertainty is accompanied by changes in other aspects of the way we live, work and travel. Rather than a threat, it presents an opportunity.

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Call For Entries

Global Banking and Finance Review Awards Nominations 2020
2020 Global Banking & Finance Awards now open. Click Here

Latest Articles

How can businesses celebrate Halloween virtually? 4 How can businesses celebrate Halloween virtually? 5
Top Stories1 day ago

How can businesses celebrate Halloween virtually?

Bring the spooky season to life by virtually gathering the team for fun activities during October. Even though this year’s...

Five key challenges CIOs in insurance will face over the next 12 months 6 Five key challenges CIOs in insurance will face over the next 12 months 7
Top Stories1 day ago

Five key challenges CIOs in insurance will face over the next 12 months

By Andrew Jenkins, Principal in the CIO & Technology Officers Practice at Odgers Berndtson, discusses five challenges CIOs will face as...

Why the future of work hinges on a mutually beneficial employer-employee contract 8 Why the future of work hinges on a mutually beneficial employer-employee contract 9
Business1 day ago

Why the future of work hinges on a mutually beneficial employer-employee contract

By Stuart Hearn, CEO and founder of Clear Review, the leader in performance management It feels like there’s been almost continual talk of...

For lenders: 5 reasons for losing a customer 10 For lenders: 5 reasons for losing a customer 11
Finance1 day ago

For lenders: 5 reasons for losing a customer

By Matt Cockayne, Chief Commercial Officer at Yapily Businesses of all sizes are battling the ongoing effects caused by the...

Eight Benefits of International Financing 12 Eight Benefits of International Financing 13
Finance1 day ago

Eight Benefits of International Financing

By Luigi Wewege is the Senior Vice President, and Head of Private Banking of Belize based Caye International Bank   Lending...

How the UK’s tax system could change to recover from COVID-19 14 How the UK’s tax system could change to recover from COVID-19 15
Finance1 day ago

How the UK’s tax system could change to recover from COVID-19

By Finn Houlihan, Director at ATC Tax   The economic impact of the COVID-19 pandemic on the British economy continues...

LightArt's Project Demonstrate What The Future Hold For Real Estate Market 16 LightArt's Project Demonstrate What The Future Hold For Real Estate Market 17
Top Stories1 day ago

LightArt’s Project Demonstrate What The Future Hold For Real Estate Market

This piece explores how LightArt byTom John Or-Paz seeks to leverage art to improve neighborhoods at scale in the branded...

The digital game plan for CFOs in a post COVID-19 world 19 The digital game plan for CFOs in a post COVID-19 world 20
Finance1 day ago

The digital game plan for CFOs in a post COVID-19 world

By Neil Kinson, Chief of Staff, Redwood Software – explains the digital priorities for CFOs as they prepare for a...

Keynotes Announced: SAP Financial Services Live 2020 21 Keynotes Announced: SAP Financial Services Live 2020 22
Events1 day ago

Keynotes Announced: SAP Financial Services Live 2020

We are delighted to announce our Keynote Speakers & Session Titles for the upcoming free to attend digital event for...

Using AI to combat fraud risk 23 Using AI to combat fraud risk 24
Technology1 day ago

Using AI to combat fraud risk

By Andrew Foster, VP consulting, AppZen Fraud experts use three factors to explain the motivation for an individual to commit...

Newsletters with Secrets & Analysis. Subscribe Now