top reasons nonprofits fail

HBIF Meeting 12-09

Administrator

Nicole Roach

Marketing Coordinator

CharityNet USA

Key Speaker

Melanie Swift M.N.M

Director of Nonprofit Services

CharityNet USA

• CharityNet USA: A “One-stop” resource

center for nonprofit organizations

nationwide!

• Key Speaker: Melanie Swift

• Questions

• Recorded Webinar Available At:

http://www.charitynetusa.com/webinararchive/index.php

• Introduction to the top reasons nonprofits fail.

• The current state of nonprofit organizations.

• Characteristics that can make or break any

nonprofit leader.

• The top 5 reasons for nonprofit failure & how to

avoid those dire mistakes!

• Americans flock to

starting a nonprofit for

variety of reasons:

Help the Community

Feels Good

Tax breaks

A Need to Contribute

Personal development

Nonprofit

organizations are

prone to a

variety pitfalls.

These can be so

dangerous that

they can turn any

organization

belly-up!

• Damage to the nonprofit sector from

the recession is mounting.

• The financial situation for nonprofits has

worsened in the past six months, while

the need for their services has

increased.

Joe

Nonprofit Leader

Confidence

Organization

Skills

Desire to do

Good

Sincere

Flexible

Goal Setter

Responsive

A Head for

Business

• Build a Solid Capital Structure

Keep Strict Money Records

File all Documents & Forms

Correctly & On Time

Set Aside Seed Money

Evaluate Want vs. Need

• Consider the following:

• Small donors are just as

important as large donors.

• Don’t expect donors to

maintain or increase the size

of their contribution each

time they give.

• Thank every donor in every

way possible!

• Build Strong Relationships.

• Learn how to market cost-effectively and time-

effectively.

• Target your marketing efforts with intense research.

• Create a marketing plan with a budget.

• Build strong relationships - Word of Mouth is one of the

strongest marketing tools!

• Make the marketing campaign and materials

interesting and accessible

?

• Get a Website !

• If you have a website Make it-user-friendly by:

• Avoiding Bulky language

• Making sure your contact information is

accessible & accurate

• Having strong content

• Making sure nothing is further than “two clicks”

deep

• Displaying your mission in a clear area

• Having an online donations page

RESEARCH & PREPARE!

501(c)(3)

• Do not pay federal corporate income tax.

• In most cases, do not pay state corporate,

franchise, excise, sales, and use taxes.

• Can offer individual and corporate donors

a tax deduction for their contribution.

• Eligible to receive

foundation grants.

• Eligible for lower postal

rates.

• Viewed as a whole as

reputable organizations.

Nonprofit

Does Not

Mean Tax

Exempt!

• Growing your nonprofit and building

awareness is not impossible during the

current economic conditions…. It may just

take a little extra creativity, planning and

motivation along the way!

• Build a solid source of funding, plan and

execute marketing initiatives and take things

one step at a time!

• Nonprofit Grant Writing: 6-3-2010 3pm EST

• Nonprofit Board of Directors 20 Best Practices:

6-10-2010 3pm EST

• Developing a Strategic Plan: 6-17-2010 3pm EST

• CharityNet Nonprofit Services

• 501c3 Prep

• Grant Writing

• Strategic Planning

• Website Development

• Graphic Design

• Marketing

• Bookkeeping & Accounting

• Nonprofit Services

• Contact Us

• Nicole Roach: Nicole@bizcentralusa.com

• Melanie Swift: Melanie@bizcentralusa.com

• Visit www.CharityNetUSA.com or Call 407-857-9002

www.twitter.com/charitynetusa Facebook Fan Page:

CharityNet USA