With the requisite paperwork for establishing a nonprofit organization out of the way, the organization can start work toward the fulfillment of its mission. With an involved board and conservative financial and operational choices, the nonprofit has a good chance at success.
Start-up Capital
Some organizations are lucky enough to fall into a very lucrative source of funding, and, as in the case of a large inaugural grant from a donor, start-up funding is taken care of and financial issues are clear from the outset. More often, though, most NPOs rely on a mixture of funding sources. Having a variety of sources for capital ensures an NPO’s status as a public charity. It also has the added advantage of diversifying funding sources, decreasing the likelihood of failure as a result of reduced funding.
Keeping an Organization Financially Healthy after Start-up
Once an NPO has commenced operations, it is essential to ensure that there are operational funds to keep the enterprise running. Just like any other business, operating expenses are an important aspect of a budget, and staying within that budget can mean the difference between a successful NPO and an unsuccessful one.
