A For-Profit State of Mind

money mindset

 

In addition to coaching and consulting for nonprofits, I am founder of the Wellness Revealed Project.  The Wellness Revealed Project like Perfecting Wellness, LLC: Nonprofit  Coaching & Consulting is under the umbrella of Ty Boone Enterprises.  An important concept that I promote in the Wellness Revealed Project is the importance of mindset in growth. Although the Wellness Revealed Project (found at www.tyboonenterprises.com) focuses more on mindset as it relates to the 6 dimensions of wellness (social, emotional, physical, financial, intellectual, and spiritual);  I find it interesting that businesses, particularly nonprofit businesses are in great need of a mindset change as it relates to financial sustainability.

While nonprofits desire to increase their services and improve their outreach  the vast majority of them likely have less than 30 days of cash on hand. This usually results from having an ineffective funding plan or no funding plan at all, relying too heavily on one source of support while not diversifying funding strategies, or having leadership that does not fully understand the processes involved in identifying and obtaining adequate funding.

Prior to the current state of the economy, it was somewhat “acceptable” for nonprofits to think with a not-for-profit attitude as it relates to their services and the manner in which they received funds.  However, with the current state of the economy, it is important to realize that in order to sustain, nonprofits must employ some of the financial principals that are used to create successful for-profit businesses.  In the same manner that you would be reluctant to patronize a for-profit business that does not “appear” to be functioning well, donors and funding agencies are reluctant to fund organizations that cannot hold its ground. For example, poor record keeping, cloudy mission statements, questionable budgets, poorly designed programs and initiatives.

In the past, nonprofit organizations were able to acquire grant-based funding pretty easily.  This was due to a number of reasons including the fact that government funding was more plentiful for various nonprofits, donors were more trusting that nonprofits would allocate funding as indicated, and a list of other reasons, but most importantly because nonprofit funding systems have changed over the years. While grant funding is still available, the most extensive awards are provided to organizations that understand nonprofit trends and who can articulate this understanding in funding proposals.  While at one point in time, presenting your organization as “needy” sparked donor interest, in today’s society, while there of course has to be a need for support, donors and funding agencies want to see fiscal responsibility, collaborative efforts, and action.

 

Need to learn more about how to adopt for-profit principles for non-profit success?  Enroll in my Nonprofit Success University http://www.perfectingwellnessllc.com/coaching/npo-success-university/

 

Want to learn more about diversifying your funding platform or how and where to find the best funding opportunities? Join my Show Me the Money Webinar (April 12, 2013). http://www.anymeeting.com/PIID=E951D785814D31

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