{"id":6952,"date":"2019-03-29T08:15:00","date_gmt":"2019-03-29T12:15:00","guid":{"rendered":"https:\/\/www.method.me\/?p=6952"},"modified":"2026-01-14T10:38:17","modified_gmt":"2026-01-14T15:38:17","slug":"5-best-practices-for-running-a-nonprofit","status":"publish","type":"post","link":"https:\/\/www.method.me\/blog\/5-best-practices-for-running-a-nonprofit\/","title":{"rendered":"5 Best Practices for Running a Nonprofit"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">You may think that nonprofit charities operate differently than private companies. But when you examine them closely, you\u2019ll see that many of their pain points, priorities and processes are familiar to all organizations, regardless of their industry. <br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whatever we call organizations in the nonprofit sector \u2014 charities, foundations, social enterprises, and so on \u2014 the point is that their paths to growth and success are based on strategies similar to those used by for-profit companies. Like these companies, nonprofits and charities require strong leadership, vision, and innovation, along with the right people and tools, to give their causes the visibility they deserve. <br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here, we\u2019ll examine some of the key strategies that <a href=\"https:\/\/www.method.me\/nonprofit-crm\/\">nonprofits<\/a> can use in order to garner support and increase their impact. <br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-know-your-donors\"><strong>1. Know your donors <\/strong><br><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The most successful charities truly know their donors. In the corporate world, this principle is called \u201cknowing your customer.\u201d But whether you\u2019re referring to customers or donors, the underlying message is that it\u2019s important to look beyond the numbers and learn more about what attracts individuals to your organization. <br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A forward-thinking nonprofit will always stay focused on the things their donors care about, where their preferences lie, and how much they\u2019ve given in the past. Sophisticated organizations can even use this information to predict (with surprising accuracy) how much those donors will give in the future. This is a huge advantage, as it takes a lot of the risk out of strategic planning. <br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">How do these organizations do it? It\u2019s a combination of the right instincts, the right tools, and <g class=\"gr_ gr_11 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace\" id=\"11\" data-gr-id=\"11\">the<\/g> right processes. Interact with your supporters at any opportunity, invest in a comprehensive <a rel=\"noreferrer noopener\" aria-label=\"donor management solution (opens in a new tab)\" href=\"https:\/\/www.method.me\/nonprofit-crm\/\" target=\"_blank\">donor management solution<\/a>, and make market research an ongoing part of your operations. You\u2019ll be amazed at what you can achieve when you have a better understanding of your audience. <br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-personalize-every-connection\"><strong>2. Personalize every connection <\/strong><br><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When it comes to effective donor management, you cannot overestimate the importance of building relationships and personalizing every communication. The people who are giving to your charity need to know that they&#8217;re making a difference. T<g class=\"gr_ gr_52 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-ins replaceWithoutSep\" id=\"52\" data-gr-id=\"52\">hey<\/g> also need to feel that their efforts are acknowledged and <a rel=\"noreferrer noopener\" aria-label=\"appreciated (opens in a new tab)\" href=\"https:\/\/www.onecause.com\/blog\/7-great-opportunities-to-show-appreciation-for-your-donors\/\" target=\"_blank\">appreciated<\/a>. <br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Hold on. But they\u2019re giving for the cause, not for themselves, right? <\/em><br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Of course, that\u2019s a nice thought, and it may be true for some donors. But overall, that\u2019s not how the <em>business<\/em> of nonprofit management works. Ask any successful for-profit business about the importance of personal relationships. They\u2019ll tell you that building and maintaining those relationships is crucial to their success. &nbsp;<br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The same thing applies here. In fact, in the nonprofit world, creating these meaningful relationships is even more important, because the donor is giving you their money without receiving a product or service in return. &nbsp;<br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To maximize donor retention, treat each donor like they\u2019re your biggest supporter. Every email, outreach and check-in call should be personalized and informed by their previous interactions with your nonprofit, their giving history, and the things they care about. <br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-leverage-digital-tools\"><strong>3. Leverage digital tools <\/strong><br><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Your donors are online and digitally active. For many younger supporters, it\u2019s the best way they know of to learn about your nonprofit, see the work you\u2019re doing, and plan their future giving. <br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Just as for-profit companies use technology to strengthen their brand, connect with potential buyers and <a href=\"https:\/\/www.method.me\/crm-quickbooks\/customer-management-software\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"manage customer relationships (opens in a new tab)\">manage customer relationships<\/a>, your organization should do the same. At a minimum, this means you should have a well-maintained website and a strong <a rel=\"noreferrer noopener\" aria-label=\"social media (opens in a new tab)\" href=\"https:\/\/www.method.me\/blog\/big-impact-on-a-small-budget-social-media-tips-for-nonprofits\/\" target=\"_blank\">social media<\/a> presence. <br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From an internal perspective, cloud-based apps are great for providing your team with a shared workspace, a centralized dataset, and mobile access to essential information. For instance, nonprofits can leverage donor management software to: <br><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">Send out personalized email communications <\/li>\n\n\n\n<li class=\"\">Organize large-scale <a aria-label=\"marketing campaigns (opens in a new tab)\" href=\"https:\/\/www.method.me\/blog\/how-nonprofits-can-use-crm-software-to-develop-an-effective-marketing-strategy\/\" target=\"_blank\" rel=\"noreferrer noopener\">marketing campaigns<\/a> <\/li>\n\n\n\n<li class=\"\">Manage interactions with donor leads \u2014 and more.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-centralize-your-administration\"><strong>4. Centralize your administration <\/strong><br><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many nonprofit organizations consist of a network of local branches across the country, each operating as its own entity. Each one of those local entities has administrative expenses for supplies, technology, <g class=\"gr_ gr_5 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-ins replaceWithoutSep\" id=\"5\" data-gr-id=\"5\">and<\/g> staffing \u2014 and those expenses add up quickly. This arrangement is a recipe for duplication and inefficiencies. <br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s a real opportunity for centralization here. For example, the umbrella organization or head office can buy supplies in bulk for cost savings. A shared software solution can also be used to assist individual branches with standardizing administrative tasks. When each branch of a nationwide nonprofit is using the same programs, it promotes consistency in data management, <a href=\"https:\/\/www.method.me\/blog\/3-strategies-to-plan-top-notch-fundraising-events\/\">campaign development<\/a>, and <a aria-label=\"donor communications (opens in a new tab)\" href=\"https:\/\/www.method.me\/blog\/9-tips-for-excellent-donor-thank-you-letters\/\" target=\"_blank\" rel=\"noreferrer noopener\">donor communications<\/a>. <br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-5-get-the-right-data\"><strong>5. Get the right data <\/strong><br><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Robert McNamara, former Ford Motor Company executive and former US Secretary of Defense, had a set of maxims for leading large organizations. One of them was \u201cget the data.\u201d Indeed, McNamara was one of the first advocates of data-driven management. <br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Just like private sector businesses, charities need metrics to assess their performance. These key performance indicators (KPIs) help paint a picture of how your campaigns are working and how engaged your supporters are. Important KPIs for nonprofits might include: <br><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">Month-over-month and year-over-year financials \u00a0<\/li>\n\n\n\n<li class=\"\">Donor acquisition cost: How much do you have to spend to acquire a new donor? <\/li>\n\n\n\n<li class=\"\"><a aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.method.me\/blog\/nonprofit-donor-retention\/\" target=\"_blank\" rel=\"noreferrer noopener\">Retention rate<\/a>: What percentage of donors who gave last year gave again this year? <\/li>\n\n\n\n<li class=\"\">Donor lifetime value: How much value do you obtain from a donor\u2019s lifetime involvement with your organization? <\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">When it comes to strategic planning, the scene at a nonprofit shouldn\u2019t look that different from that at a private company \u2014 a group of smart people gathered around a conference table, looking for answers to complex questions and planning the way forward. Your KPIs should be an important part of that strategic process. <br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-using-technology-to-promote-best-practices\"><strong>Using technology to promote best practices<\/strong><br><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Every nonprofit best practice \u2014 from knowing your donors to collecting essential data \u2014 can be supported by the right technology. Nonprofit-specific software can help organizations streamline many aspects of their day-to-day operations, including <a href=\"https:\/\/www.method.me\/nonprofit-crm\/\">donor relationship management<\/a>, donation tracking, email marketing, and reporting.<br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By investing in key tools right from the get-go, your organization will be well-equipped to capture new leads, turn those leads into donors, and execute campaigns to keep donors engaged for the long haul.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you&#8217;re running a nonprofit, it&#8217;s essential to think strategically. These best practices will help you build your donor base and increase your impact.<\/p>\n","protected":false},"author":24,"featured_media":37372,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[26],"tags":[87,24,27],"class_list":["post-6952","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nonprofit","tag-donation-management","tag-donor-management","tag-nonprofits"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>5 Best Practices for Running a Nonprofit &#8212; Method<\/title>\n<meta name=\"description\" content=\"When you&#039;re running a nonprofit, it&#039;s essential to think strategically. These best practices will help you build your donor base and increase your impact.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.method.me\/blog\/5-best-practices-for-running-a-nonprofit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"5 Best Practices for Running a Nonprofit &#8212; Method\" \/>\n<meta property=\"og:description\" content=\"When you&#039;re running a nonprofit, it&#039;s essential to think strategically. 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A writer eager to see the impact her words have on the world, she loves discovering and sharing strategies that help small businesses succeed. In her spare time, you can find her dancing at concerts, hanging out with friends and trying out new restaurants!\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"5 Best Practices for Running a Nonprofit &#8212; Method","description":"When you're running a nonprofit, it's essential to think strategically. 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