Reliable employees help nonprofit organizations run effectively.
Nonprofit organizations can include charities, museums or other service-based enterprises. Although nonprofit organizations generally exist to benefit people in need, they run like a business. People managing nonprofit organizations must be aware of the special legal and tax issues related to running nonprofit organizations. Nonprofit organizations must find ways to pay employees, run efficiently, remain beneficial to target populations and satisfy donors.
Instructions
1. Appoint a board of directors. The board of directors takes on legal and ethical responsibility for nonprofit organizations. The board of directors provides guidance to ensure that nonprofit organizations adhere to their missions. Some states, such as Illinois and Maryland, require nonprofit organizations to have a minimum of three board members. Recruiting board members with diverse sets of backgrounds and skills can help your organization create relevant programs and make business savvy decisions.
2. Generate monthly balance sheets. Monitoring finances ensures that you have enough money in the bank to pay bills. While many new nonprofits monitor finances with accounting software, eventually you may need to hire an experienced accountant to help you manage payroll and donations.
3. Hire the right people. Screen qualified applicants carefully before making job offers and provide thorough new-hire training. Provide paid and unpaid staff with job descriptions detailing expectations. When employees or volunteers fail to meet expectations or detract from nonprofit organization missions, do not be afraid to end their tenure.
4. Write program evaluation reports. Program evaluations allow you to focus your organization's energy and resources for maximum effectiveness. You can evaluate your nonprofit organization's progress by filling out forms and writing reports designed to measure program effectiveness. The evaluation process starts with tracking output such as whether the community received the services outlined in the nonprofit organization's mission statement. While some nonprofit organizations may not have the technical expertise or money to conduct objective, in-depth scientific surveys or track program participants and services over years, making an ongoing effort to gauge your nonprofit organization's overall value can be critical to success.
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