Measuring the key success factors in Nonprofit organizations



It is difficult to create and operate a nonprofit organization which successfully meets its goals. It can prove to be just as difficult, if not more so, as operating a for-profit business. Running a nonprofit for your heart’s content doesn’t mean that you are not required to meet the objective goals. In order to attract a higher degree of government, corporate or public support, you must setup key performance indicators so that you may succeed by managing your organization efficiently.

Listed below are some these key success factors:

1.     Well-Defined Mission

You need to ensure that the organization’s mission statement is specific as this will help you in achieving your goals successfully. Some goals that nonprofit organizations adopt are not specific enough, for instance, “Helping children” or “working with animals” are very broad goals. You need to create a mission statement which can be shared with the Secretary of State, the Internal Revenue Service, and with the public. The revenue service usually provides tax exemption for nonprofit organizations.

2.     Long-Range Planning

Ideally, nonprofit organizations should create three-year plans that outline certain goals and highlight plans for achieving those goals.  Although the organization’s mission may remain the same over the years, it may include some new activities like including target population for assistance or expanding committees, newsletter or website, and setting increased goals for raising funds. You should discuss the 3-year plan and the annual plan in a yearly meeting with the board of directors.

3.     Make a Profit

Nonprofit organizations are permitted to earn a profit as long as they don’t have profit as their sole purpose. As long as most of the income of the organization is spent for a charitable cause, their profit is legitimate. In order to maintain fiscal competence, you need to operate the organization as a business with some excess cash at the end of the year after all the bills have been paid.

4.     Do Your Paperwork

The kind and amount of paperwork that you will be required to perform depends on how the organization has been incorporated. It depends on whether the nonprofit organization has the status of 501(c) and what your federal requirements are. These factors will determine the different kinds of forms you will be required to fill out each year. This includes the records that are available to the public, free of charge. There are some nonprofit organizations which are not exempted from Federal tax as well as stat sales tax.


5.     Communicate Success

It is very important for you to maintain the level of support that you are currently receiving. To do so, you must communicate your success with the donors, sponsors, current and potential volunteers, and the general public, in order to ensure future success. You should send press releases to the media, operate direct mail campaigns, publish a newsletter, and update your website regularly.

6.     Volunteers

The qualification of a person and the ability to work hard should not be judged by the fact that they volunteered. This does not guarantee anything.

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