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How to Run a Nonprofit Corporation

by Alejandro Russell, studioD

Running a nonprofit corporation can be a gratifying endeavor if you manage to accomplish its goals. It can also be challenging if you don’t have the necessary know-how and resources. Many nonprofit managers have failed in their quest because they didn't implement the industry’s best practices. You must put in place a viable plan that will guide you to make the right choices when running a nonprofit corporation.

Be Organized

Running a nonprofit corporation requires you to be meticulous in performing your duties by maintaining resources that keep you focused on your organization’s goals. You should keep resources close at hand, including your mission statement, job descriptions, program surveys and business contacts, so you can refer to them whenever you need to. These will help you stay on track for what you want to do and how you'll go about it.

Recruit the Right People

You can't accomplish your goals without the help of others. You should enlist professionals and nonprofessionals who have a passion for philanthropy. A professional such as an accountant can take care of your financial issues to ensure you comply with state and federal laws. According to the IRS, you must pay taxes if your organization is not tax exempt. You should only allow people who have shown high levels of philanthropic desire to sit as members of the board.

Establish a Code of Conduct

To ensure that everyone does what's best for the organization, you must lay down a code of conduct for all staff and board members. Not even the founder of the nonprofit should be exempt from adhering to the rules set in the code. Such rules will help you point out errors and know how to deal with issues that arise. The code of conduct will also guide people who work in the organization and help them focus on achieving maximum benefit for the nonprofit.

Ensure Financial Stability

To achieve the primary goals of your nonprofit, you must have sufficient funds. You can seek funds from local and international donors through various methods, such as soliciting grants from foundations and other organizations and organizing fundraising. Once you acquire funds, you must ensure that you utilize them transparently and that you use them for their intended purpose. You can ensure transparency and accountability by undertaking financial audits periodically.