Tips on Keeping Charity-Owned Business Afloat

Posted by Fundraising Pro on June 8, 2009

Christian non-profit groups and charities planning to start a business or keep one afloat are confronting daunting economic challenges. Experts in the field offer the following fundraising tips:

Don’t panic. The fundamentals of business don’t change, even in a downturn. To be successful, businesses still have to lure and keep customers, provide good service and keep prices competitive.

Watch the numbers. Keeping an eye on costs and cash flow takes on increased importance in a tough economy. Nonprofits that typically run their financial reports every couple of months should move to a monthly or even weekly schedule.

Planning is important. More charities are creating a range of contingency plans for their businesses now. It is important to outline courses of action for different levels of increases or decreases in revenue.

Be realistic. Many nonprofit groups are reeling from drops in their philanthropic support, but organizations in financial crisis should not start a business simply because it seems an easy way to make money. It could drain resources and create a worse situation.

Look ahead to the economic recovery. The downturn provides a valuable opportunity to plan and lay the groundwork for a new business to start in the near future.

Mission is key. To make smart choices in response to the economic crisis, nonprofit organizations need to remember why they started their businesses in the first place.

Sell the Samaritan Card. This wallet-sized discount card makes it easy to generate revenue. There’s little overhead and it offers your community a way to donate during difficult financial times – the card pays for itself after only several purchases.