The title of this short piece is the mantra that I always give to our nonprofit clients and to board members of organizations on whose board I’ve been privileged to serve. It is a fact of mission and purpose that a nonprofit organization doesn’t get formed, or operate, with the idea of making a profit. Profits go to supporting the mission (as long as dry spell reserves are built). But it’s also a tenet of existence and survival that a nonprofit operate in a “not for loss” mode, at least not for any extended period of time. Running a nonprofit organization is in many ways like running a business. the big difference is the financial goal. For a for-profit business the goal is, well, a profit. For a nonprofit the goal is not making a profit but focusing all available resources on the mission WHILE ENSURING THE SURVIVAL OF THE ORGANIZATION SO THAT IT CAN CONTINUE TO PURSUE ITS MISSION.
It’s that last part that sometimes gets nonprofit folks stuck. If they can’t raise enough money through services or donations to continue to provide a service, maybe they should not be providing that service. And if the service is of value to the mission, maybe they should help others to offer it instead. Harsh language for some, but we recognize that an organization that cannot balance its finances will never achieve its mission, it will only drain resources from other organizations perhaps better suited to achieve the mission,
Our firm has for the past 30 years helped both for-profit and non-for-profit organizations achieve their mission by providing high value financial guidance to management. Our clients have included these southern California nonprofit organizations, some of which you may recognize:
If you’d like some assistance in running your organization in a “not for profit, not for loss” manner, we’d welcome your call. 888.788.6534