HR Workforce Solutions
By Nonprofits, For Nonprofits
When marketing in the nonprofit sector, it can be a difficult road to navigate. With more than a million nonprofit organizations registered in the U.S., it can be challenging to earn the trust and support needed from donors to run a successful nonprofit. From grassroots groups to national organizations, local nonprofit marketing brings its own unique set of challenges. Even national nonprofits often struggle to implement cohesive campaigns across their many locations.
Here are five of the biggest obstacles nonprofit markers have to face on a daily basis:
1) Consistent Messaging: More often than not, nonprofits are faced with bandwidth restraints making it difficult to develop specific messaging that speaks to different marketing channels and constituents.
2) Communicating on a Personal Level: Since most nonprofits suffer from having a small team or budget restraints, marketers rely heavily on the success of email communications to their membership and supporters. While this form of communication can result in a positive response, it lacks personalization. The use of social media can be a great way to connect with your donors on a more personal level—allowing for more one-to-one communication.
3) Using Key Performance Indicators: Measuring success of marketing efforts is an area some nonprofit marketers lack expertise in or the time to devote to capturing this data. Marketing teams that have been able to incorporate the task of measuring their efforts, have more insight into performance and the ability to make data-driven decisions when creating an annual marketing plan.
4) Communication Across all Teams: In order for nonprofit marketers to gather accurate data and segment prospect lists, they have to collaborate with other departments and this can be a difficult task for some organizations. Passing information around the organization can lead to some restrictions or even tension amongst departments–competing for budget increases and donor attribution.
5) Dealing with Budget Restrictions: Nonprofit marketers deal with challenges from all directions, especially when it comes to budget restraints. Many nonprofits face challenges in reaching their marketing and engagement goals and this is primarily due to budgetary constraints. This is a consistent theme across most organizations, regardless of size or type of nonprofit.
With the needs of nonprofit communities constantly changing, we have to remember that the marketing strategies should change with them. To gain continual support, nonprofits need to keep consistent communication with donors, volunteers, and employees. They should attend council meetings, fundraisers, and other events to gain exposure and one-on-one face time with those they hope to serve.
Understanding the concept of the “business model” for your nonprofit has become a more integral component to maintaining organization sustainability within the nonprofit sector. Nonprofit leaders, grant makers and stakeholders want more insight behind the business and financial foundation of how a nonprofit organization is able to deliver according to their mission drive initiatives.
When discussing the nonprofit business model, often times it will include topics such as, cost to deliver services, mix of sources of funding, and key drives of financial results. Discussions around the financial stability and sustainability, more times than not, focus on the overall health of the balance sheet and operating results of a nonprofit. While each of these are essential components to have a better understanding of an organization’s finances and business model, these types of conversations can lose sight of a critical part of any business—the day-to-day operations. For example, the way a nonprofit organization does business can have a major impact on cash flow.
Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a nonprofit’s ability to create value for shareholders in determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow. Managing cash flow is primarily consisted of questions: when will we pay our staff; when is this bill due and when will this grant payment come in? While there are variety of nonprofit business models, each one has a particular bearing on these types of questions.
A nonprofit business model has two main components: what kinds of programs and services nonprofits deliver, and how they are funded. Each of these components have implications on organizational cash flow that should be understood in order to have effective financial planning.
Below are a few helpful strategies to use when addressing cash flow issues:
1) Understand where funding is coming from: Each type of income stream can have certain implications and challenges for cash flow, so if a business model is built primarily around one type of funding, you will need to understand and plan for those implications and challenges.
2) How to balance cash going in and out: In order to meet operating cash needs in the absence of adequate cash reserves, a nonprofit can turn to a line of credit to meet the temporary imbalance between available cash and expenses due. Credit lines, when used responsibility, can be a useful and vital tool for cash flow management.
3) How to manage cash across your organization: While it may be impossible to ensure that cash is coming into the organization exactly on time and on target to keep things on autopilot, it is possible to plan for those times when it isn’t, and make decisions to be sure that bills and staff are paid on time.
Being informed, strategic, and collaborative in cash flow management can help to ensure that a nonprofit’s long-term strategy isn’t hindered by avoidable and short-term obstacles.
For more information on this topic, please reference this article: https://www.propelnonprofits.org/resources/managing-cash-flow/
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UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.
Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.
Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.
