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Running a nonprofit as a business and starting a business what to do

Veteran

Mike Gordon Virginia Beach, VA

So I know that running a nonprofit is just as much as running a business as anything else. Looking to try to find funding somehow so that we can continue to maintain the nonprofit as well as I plan to move to Jacksonville Florida this year and want to see about trying to start up a possession and recovery business. I have an idea of what I need to start but will need that funding as well to get things started as well as contacts in the area to start building relationships. I know I need a good business plan and maybe a business plan for both, but I am not sure how a nonprofit business plan would even look.

4 January 2017 5 replies Small Business

Answers

Advisor

Carol Lindberg San Diego, CA

Grants play an important role when it comes funding nonprofits. Many organizations incorporate them into their annual fundraising plans. Experts recommend using funds raised through grants to cover at least 20 percent of the budget. To find viable funding opportunities, you need to research key sources in the private and public sectors.

Traits of a Successful Nonprofit Organization: http://onlinempadegree.usfca.edu/news-resources/news/7-traits-of-a-successful-non-profit-organization/

Some of the main sources of funding for nonprofits include:
- Tax revenue
- Foundation grants
- Gifts and donations
- Loan financing and equity capital
- Government grants and contracts
- Trading
- Contracts
- Corporate contributions
- Bequests

Gifts and donations
Donations can derived from foundations, companies, individuals and charitable trusts. Applications for this form of funding is relatively flexible. Gifts and donations can attract tax relief for the nonprofits. However, the fundraising campaigns can be costly and time-consuming. It is possible to incur financial losses while attempting to secure the donations.

Grant funding
When you receive grants from companies, foundations or trusts, you are not required to repay. In addition, the funds are generally tax-free.

Finding grants resource: http://grantspace.org/tools/knowledge-base/Funding-Resources/Foundations/finding-grants

Conducting prospect searches
The process of finding funding opportunities starts with searching for prospects. Foundation directories are good sources of information. You can search funders who focus on your geographic region and area of specialty. Doing so maximizes chances of a positive outcome. The directories allow you to download profiles of foundations whose priorities match your organization's mission.

Some of the resources offer access to requests for proposals (RFPs). You can sign up for a free newsletter or an RSS feed to receive up-to-date information proposal requests. These sources allow users to search by city, ZIP, state and other variables.

Searching by keyword is a sure-fire way to narrow down the results. For instance, typing homeless allows you to identify funders with a specific interest providing funds for homeless people.

Once you have narrowed down the search results, you need to review each funder's initial approach preference. Pay more attention to current or open nonprofit funding opportunities. You can explore expired opportunities after completing the initial search.

The federal government provides access to funding resources through an official website -- grants.gov. The platform makes it easier to perform a federal funding search.

Importance of diversity in nonprofits: http://onlinemasters.ohio.edu/public-administration-building-more-diverse-public-organizations-and-businesses/

Advisor

James Bishop Columbus, OH

Does the possession and recovery business have anything to do with the non-profit? I assume you are describing a repo business and I don't see the non-profit connection.

I think John's advice of talking/meeting with SCORE would give you a sounding board to work through this and get your thoughts organized.

Advisor

Taube Weiner Dedham, MA

Hi Mike,

Have you gone to the SBA (Small Business Association? they have coaches that are very helpful. Before I started my own business I went to see them and found a great coach that gave me great advice. I am a career coach and offer free service to military. It's my way of saying thank you.

Great book to read: " Entrepreneurial StrengthsFinder.". Non profit or for profit you're an Entrepreneur. This not only asks the right questions but also give you the opportunity to do the online test that measures readers' entrepreneurial potential.

Taube Weiner transitionsbyTaube.com.

Advisor

Jennifer Polhemus Santa Monica, CA

Consider partnering with another organization first, to build your contacts/network and learn as much as you can. Stand-alone nonprofits are risky and so many under-achieve, despite good intentions. Working with those who share your passion helps everyone succeed. If you have a unique idea, see if you can work with/under the umbrella of another nonprofit, which enhances success & longevity, opens more doors to funding, and brings you into deeper contact with resources & clients, while saving you from many administrative requirements and freeing more time and resources to achieve your social goals. There is lots of room for entrepreneurship & drive within existing structures. Keep up the good work & best wishes!

Advisor

John Green Cary, NC

https://www.score.org

Would be of help to you.

1. There is plenty of money available to those who have a plan and not just a dream.

2. Its senseless to file any paperwork with any government organization without a written plan that is fully vetted.

3. Once you file paperwork to create 501 chartered org, you then become accountable for all the reporting requirements and quarterly paperwork , so better to be prepared with your plan before you have to file government reports every 90 days on something that is not even a going concern because you have no plan.

4. If I were you, I would immediately withdraw your 501 application until such time as you can resubmit it with proper planning and funding.

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