As a business owner who donates to non-profits, a former employee in a leadership role in two non-profits, and as a former board member of multiple non-profits, I have had to look at the Internal Revenue Service (IRS) form 990 for a number of organizations from a variety of perspectives. You can get a surprising amount of information about most non-profits from their 990 if you know what you are looking for. While I think this document will be helpful to staff and donors, I am going to go through these points as if I am either a current or prospective board member.
Resources
Nehemiah Communications is providing these free resources in an effort to share some of the solutions we have developed and successes our clients have enjoyed. Please download and use these papers and then contact us to discuss your organization's needs. The Resources documents are an eclectic collection of our expertise in many key areas of business and organizational processes.
What you can learn about a non-profit from an IRS Form 990
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Non-Profit Board Basics for Business People
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The key to developing a successful nonprofit is having an external focus. While this is how most nonprofits start, as they grow they often become unbalanced, focusing on internal issues. (i.e. fundraising, staff issues, etc.) For example, is the board getting direct feedback (not only through staff) from the people that they serve (clients) and their donors?
Case Statement
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A good case statement is one of the most important tools your nonprofit can have in seeking outside funding. It takes time and effort to produce a good case statement but the investment is well spent because it serves as your chief tool in fundraising and is the foundation document from which all other publications must be derived. It needs to grab a prospective donor’s attention, and then offer a solid reason for investing in your organization.
Success Kills
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Among businesses and nonprofit organizations, there is a sad truth about which no one likes to talk about. It is that success kills as many organizations as failure. Failure is understandable when an organization cannot get enough revenue, does not have the proper staff, and/or does not have a clear mission. It is easy to sympathize with those involved in such failures; but no one likes to think about the organizations that are highly successful, well funded and have great talent to call upon but end up closing or—in order to survive—shrinking to a fraction of their former glory.
Promoting Events
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Successful event planning starts long before the event and includes a lot more than getting a good events manager—paid or volunteered—to plan and oversee the actual event. Good event planning must include marketing and promotion, and these efforts must be made weeks or months prior to the event. Even before marketing and promotion, the organization’s leadership needs to have a clear idea of the desired outcomes and a good understanding of the resources available to support and promote the event. In fact, all organizations have three resources: money, manpower and time. Understanding these resources and how to mix them to promote an event is the single greatest tool for increasing the number of people
who attend.