Common Mistakes Made by Nonprofits
- Not Having a Competent CEO
- Entrepreneurial - should have the ability to sniff out opportunities
- Management Skills - Should have experience in nonprofit management and should be committed to constantly improve on those skills
- No Website Or Poorly Designed Website.
- Poor Planning - No plan of action. A nonprofit is much like a business. There should be detailed implementation plans for new ventures.
- Poor Accounting and Money Management - Failure to have the software and systems in place to properly monitor grants and contracts.
- Marketing Only to Large Donors and Not Thinking Smaller Donors are Just As Important. - 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 circumstance they donate no matter how much they give
- Nonprofit Doesn't Mean Tax Exempt. - There is no real advantage operating a business as a nonprofit corporation UNLESS that corporation has obtained an exemption under Section 501(c)(3) of the IRS Code. Once that exemption is obtained, failure to comply with IRS regulations can lead to trouble