Think You Know Nonprofits? Think Again! Misconceptions about nonprofit organizations abound, and they can hinder the success and growth of both established and emerging nonprofits. At GrantWriterTeam, we are committed to setting the record straight and supporting nonprofits in achieving their missions. Read on to discover a few things you might not know about nonprofits!
1. Nonprofits Can Earn a Profit
Nonprofits CAN and SHOULD earn a profit. Profits provide the funding nonprofits need for their cause. Just like a business, nonprofits pay competitive salaries and have operational costs to support their missions. To illustrate, nonprofits typically spend 75%-80% of their total budget on programs.
2. Nonprofits Should Have Low Overhead
The IRS regulates nonprofits to ensure that funds are benefiting a cause. A nonprofit should not exceed an overhead rate of 35%. Any amount higher should prompt a budget audit. To illustrate, nonprofits use remaining funds after paying operating expenses, like employee salaries, to accomplish their mission, rather than distributing it as profit.
3. Recruiting Volunteers Is Not the Only Way to Staff a Nonprofit
Nonprofits have staff and salaries, too. To illustrate, nonprofits employ over 10% of the workforce. However, nonprofits also utilize volunteers. In truth, the value of a volunteer is over an in-house wage. Pay your staff a fair wage. But, be careful, do not overpay the CEO of a nonprofit, as this can lead to an audit.
4. Nonprofits Are Not Only Funded By Grants
Grants are not the only funding source for nonprofits, by far. Many successful nonprofits adopt a donor-centric management style to increase their donations. All types of donations help nonprofits fulfill their causes. To illustrate, some nonprofits build relationships with sponsors. For example, a local business aligned with your cause may offer a letter of support outlining their promise to donate a venue for fundraising events.
5. Charitable Giving Benefits Everyone
Many large corporations and philanthropists enjoy the benefits of giving. However, tax laws also encourage common individuals and small businesses to give to charitable causes by providing charitable giving incentives.
How To Find Grants For Nonprofits
Grants offer essential, non-repayable funding opportunities, and GrantWriterTeam knows where you can find them. If you’re a grant writer or you’ve hired a professional grant writer, GrantWatch is waiting to help you. Visit GrantWatch.com and locate grants with the SMART Advanced Search filter. In short, this tool allows you to search by recipient type, location, category interests, funding source type, and deadline date. Each grant listing includes eligibility criteria, application details, deadlines, and additional resources. Add your grant to your Grants Calendar to keep track of your grant applications.
About GrantWriterTeam
Are you a nonprofit or small business in need of some help? If you are searching for grants but are feeling overwhelmed, hiring a grant writer may be the perfect choice for you! Grant writers thoughtfully grant opportunities and consider the pros and cons of applying and the chance of success. Consider your writer an extension of your organization. They will coach you throughout the entire process and curate the project to fit your needs. Your grant-seeking success is our priority at GrantWriterTeam.
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