There are millions of nonprofit organizations worldwide. Many of them are doing excellent work, leading noble causes to help people, animals, the environment, or achieve other honorable goals. Despite thriving across the world, some nonprofits face confusion and conceptions. To clear things up, let’s look at some facts about nonprofits that you may not have known:
Top 5 Less-known Facts About Nonprofits
#1 Nonprofits Generate Revenue
Some people believe that nonprofits don’t make money because they’re “not-for-profit.” On the contrary, many nonprofits generate revenue. Some are run like any other business. After all, nonprofits have to pay the following costs like most organizations:
Nonprofits certainly gain many resources at discounted rates. But rarely is anything free. Nonprofits also need talented, hard-working, and qualified employees who may work at lower rates but can’t work for free.
Any excess capital generated by nonprofits is used to further their goals or invest in new opportunities. Nothing is used for personal gain.
#2 Nonprofits Have Talented Leaders
Nonprofit leaders may not make the news like for-profit leaders, but they’re just as hardworking and resourceful, if not more. Unlike leaders of conventional organizations, nonprofit leaders have fewer resources to work with. Yet, they must keep their organizations afloat, inspire their followers, work with volunteers, cultivate relationships with donors, satisfy their founders, and much more.
Leaders of nonprofits often wear many hats. Facing higher turnover rates, they sometimes have to take on different jobs around the office at various levels.
#3 Nonprofits Can Be Modern
Like conventional organizations, nonprofits can use modern technology to enhance their operations. For example, nonprofits use Constituent Relationship Management (CRM) solutions, social media tools, cybersecurity programs, accounting tools, photo and video editing software, communication platforms, and much more.
Nonprofits also use technology specifically designed to accelerate their impact. For example, many nonprofits rely on top CRM fundraising software and excellent nonprofit website design to help generate revenue.
Such software allows nonprofits to optimize relationships with donors, win big grants, manage events, process payments, and even organize volunteers. It also offers tools like a fundraising thermometer to inspire donors during fundraising events.
#4 Nonprofit Contribute to the Economy
Not only do nonprofits strive to make this planet a better place, but they also contribute to world economies. In Canada, nonprofit organizations contribute almost 10% to the national GDP. They’re also prolific employers. 10% of the United States workforce is employed by nonprofits.
These small but meaningful contributions help economies stay healthy.
#5 Nonprofits are Efficient
Some people criticize nonprofits for being bloated or being packed with staff members. This is usually far from the truth. Many of the people working at nonprofits are usually volunteers who contribute their time and energy because they believe in the organization’s cause.
Nonprofits are usually more efficient than conventional organizations. Revenue streams aren’t always consistent, and nonprofits are often stretching their dollar.
#6 Nonprofits Need More Than Money
As mentioned, many nonprofits rely on volunteers for help. People who contribute their skills and time are invaluable to nonprofits. In addition to donations and volunteers, nonprofits look for other resources too, such as inventory, discounts, etc.
Nonprofits face numerous social hurdles, including misconceptions. Learning more about what they do and spreading the word can also help them achieve their goals.
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