5 Services Every Nonprofit Should Be Using In Its First Year — Boss on a Budget (2024)

How to start a nonprofit

Written By Tiffany Allen

Note: This post contains affiliate links. See our affiliate disclosure policy for more information.

So, you’ve decided that you want to start your own nonprofit. You’ve written your vision and mission and have officially launched. Get ready, your first year is going to be filled with hard decisions….should you invest in the computer equipment or office space? Or wait, maybe hire that accountant or that lawyer? It can be difficult to figure out which investment will have lasting value. Your wish list may be a mile long and it may be agonizing to decide which item has priority. Not prioritizing your wish list may result in unnecessary spending that eats up your budget, or you may focus too much on certain items while ignoring other necessary purchases. I’ve created Boss on a Budget for this very reason-to help you navigate your decision-making in the first year and make solid choices that set a good foundation for launching your nonprofit successfully.

Below are the 5 online services that every startup nonprofit should be using in its first year:

G Suite (formerly Google Apps for Work)

Cost: Free (for nonprofits)

The G Suite is a collection of tools from Google to help streamline your basic business processes. It includes a business email address, video and voice calls, integrated calendars, and 30GB of online storage. As a nonprofit, one of your best marketing tools is your website, and using the G suite allows you to create email addresses using your website’s domain (e.g.,name@yourbusinesswebsite.com). One of my favorite features of the G Suite is Google Docs & Drive which are cloud-based. Don’t know what that means? Instead of creating and storing documents on your computer’s hard drive or a physical drive which is vulnerable to be corrupted or stolen, you can store your documents in tech heaven. Tech heaven (the cloud) are servers managed by other companies that allow you to access and modify documents from anywhere you can access the Internet. Using Google products you can create documents, spreadsheets, forms/surveys, or presentations.

Why You Need It: The Google for Nonprofits program gives you access to these tools for free. You also have the ability to create unlimited email address for all staff persons. That should be enough justification for you but in case it isn’t, go ahead, keep reading…...Because Google is such a household name, it’s much more likely to integrate with other apps or programs once you begin to build your budget and expand to use other online resources. Yes, there are other alternatives you can use, but most are not as user-friendly, well-known, or well-functioning as Google. Also, practically everyone and their mother has a gmail address, and the ability to use the same platform that most of your staff will be accustomed to is a big plus. If you are considering alternatives, I would take any decision about an email client very seriously as a missed or delayed email may be the difference in getting a donation and not getting one. And at $5 per user, you really don’t have much to lose. Visit Googleto join.

Squarespace

Cost: As low as $8/month

Squarespace is a website builder service that is fully integrated-it includes a drag and drop style website builder, a blogging platform and website hosting all in one. Their company’s slogan is “Build it Beautiful” for a reason. Squarespace’s website design is based heavily on the use of bright and vivid imagery with a big impact. Based on a number of company-created templates, you can easily incorporate your branding, images, and copy into your own website.

Why You Need It: Every nonprofit should have a website. Considering that adults spend over 20 hours a week on the Internet, it’s one of the best ways for potential clients, donors, funders, and other supporters to find you. Your website can expand your reach beyond your organization’s physical capabilities and can speak for you when you’re not in the room. Given that, keep in mind that your website can be an asset or it can be a detractor. Whatever website builder you use, it needs to help communicate your message quickly and beautifully. Many people will insist that you need a web developer to create an effective website. However, a carefully planned and thoughtful website does not have to be expensive and does not have to be outsourced. I would argue against the use of a web developer during the first year of your nonprofit. Use more sophisticated custom designs for a later stage in your nonprofit’s development. Squarespace’s simple and uncomplicated design is the best option if you have limited knowledge, time and/or resources to create a website.

Mailchimp

Cost: Free

Mailchimp is an email marketing platform that can jazz up your email communications. You can create lists of people and send communications to segments of those lists based on behaviors or their interests. It helps you to organize your communications into separate campaigns and allows you to track the success and engagement of your emails. Mailchimp is free up until a number of subscribers. After that point, it starts at $10/month.

Why You Need It: Mailchimp is so awesome and popular because it starts out free. There are many other email platforms that promise the world, but for what you need in your first year, it is an excellent resource. Mailchimp also integrates with many other online services including Eventbrite and Squarespace, to automatically link the email addresses you collect to your lists in the Mailchimp interface. As you build your donor base, it’s important that you have a system to reach out to them immediately after they reach your organization, and you can use Mailchimp to continue reaching out to them when they reach certain milestones (like when they donate a certain amount or attend an event). For a small fee you can upgrade to use their automation features and set up a system to reach out to your lists when certain events are triggered.

Canva

Cost: Free

Canva is the best kept secret of wannabe graphic designers worldwide. It is a service that allows you to design content for any project imaginable- social media posts, brochures, flyers, presentations, business cards, and anything else you can come up with. Canva allows you to use icons and various templates to give your designs a boost. Canva Pro, which is free for eligible nonprofits, allows you to customize your fonts and organize projects among a team. Canva is easy to use and allows you to quickly create professional looking documents. You can sign up for Canva Pro HERE (please note that this is an affiliate link).

Why You Need It: As a nonprofit, your branding and messaging must be consistent, attractive, and eye-catching. Yet, it’s difficult do that without hemorrhaging your budget, which is more than likely limited in your first year. You still need to create clean and sharp designs that make the impression that you’re a legitimate and credible business. Canva allows you to develop elements, colors, and fonts with ease that can consistently be used in documents. It also gives you the ability to share concepts within a full team so that any content produced is consistent.

Facebook

Cost: Free

I’d be pretty shocked if you haven’t heard of Facebook. But in order to not be judgmental, I’ll act like it’s not a big deal if you haven’t. Facebook is an online social media and networking service that allows you to create user profiles, business pages, and online groups to connect to family, friends, colleagues, and strangers across the globe. When you set up a business page, you can add important information about your business like your mission, website, services, location, and pictures.

Why You Need It: Remember when yellow pages were a thing? When you would actually pay to be featured in those huge phone books that were delivered every year? Isn’t it amazing how time changes everything? Whether you love or hate it, Facebook has to be a part of your marketing strategy. There is absolutely no excuse for not having a Facebook page. Some businesses are even forgoing their own websites for just a Facebook page. Some will check to see if you’re on Facebook before googling your website. Facebook has over 1 billion monthly active users, which certainly includes many of your potential donors. Your visibility online is just as vital, if not more vital than a physical presence. Think of it as paying $0 for rent for a visible space where you can find supporters, connect with them, and build trust and your reputation.

Once you start a nonprofit, you may be overwhelmed with where to start. Of all the choices you’ll have to make with your new nonprofit, these 5 tools should absolutely be on the top of your list.Check out our start-up toolkit with relevant blogs, videos, and other resources you need to get started.

startupnonprofittechnology

Tiffany Allen

5 Services Every Nonprofit Should Be Using In Its First Year — Boss on a Budget (2024)

FAQs

What is the first year budget of a nonprofit organization? ›

For new nonprofit organizations, your first budget is one of the most important planning tools for short-term success and long-term sustainability. Your budget should include expected revenue, program expenses, and administrative and fundraising expenses.

How to create a budget for a new nonprofit? ›

10 tips for creating budgets at nonprofit organizations
  1. Use a budget template. ...
  2. Minimize your budget line items. ...
  3. Divide annual costs out by month. ...
  4. Create an annual total for your budget. ...
  5. Account for inflation. ...
  6. Consider fluctuations in revenue and expenses. ...
  7. Use prepopulated budget templates.
Jan 3, 2024

What are the elements of a nonprofit budget? ›

Three fundamental components are crucial in a non-profit budget: income, expenses, and balance. Income refers to the financial resources that flow into a non-profit organization.

What do nonprofit organizations begin their budgeting process with? ›

At the first budget planning meeting, the board or budget committee should agree on their financial goals. This will require prioritizing program delivery goals and setting organizational financial goals. This is a good time to review the current year's actual income and expenses against the budget.

What is the first step in organizing a budget? ›

The first step in creating a budget is to identify the amount of money you have coming in monthly. Look at your salary and determine your net income. Your net income is how much money you make after any deductions like interest and taxes. This is the number you should use when creating a budget.

What is a good operating budget for nonprofit? ›

While every nonprofit's expense budget will look slightly different, the Better Business Bureau recommends that organizations don't spend more than 35% of their funding on their overhead expenses and spend at least 65% on their programs.

What are the 5 steps of the budgeting process? ›

How to create a budget
  • Calculate your net income.
  • List monthly expenses.
  • Label fixed and variable expenses.
  • Determine average monthly costs for each expense.
  • Make adjustments.

What are the 7 steps in the budget process? ›

Budgeting Basics: 7 Steps to Building Your First Budget
  • Why is Budgeting Important? ...
  • Define Clear Financial Goals. ...
  • Digitalize Your Expense Tracking. ...
  • Calculate Consistent Monthly Income. ...
  • Categorize and Analyze Expenses. ...
  • Craft and Fine-tune Your Budget. ...
  • Regularly Update Your Strategy. ...
  • Prioritize an Emergency Fund.

What is the average budget for a small nonprofit? ›

Nonprofits by the Numbers

97 percent of nonprofits have budgets of less than $5 million annually, 92 percent operate with less than $1 million a year, and 88 percent spend less than $500,000 annually for their work.

What are the five parts of a budget? ›

What Are the 5 Basic Elements of a Budget?
  • Income. The first place that you should start when thinking about your budget is your income. ...
  • Fixed Expenses. ...
  • Debt. ...
  • Flexible and Unplanned Expenses. ...
  • Savings.

What are the four basic financial statements for a nonprofit? ›

Nonprofits typically prepare four types of financial statements to visualize their financial health and communicate it to stakeholders:
  • Statement of Financial Position. ...
  • Statement of Activities. ...
  • Statement of Cash Flows. ...
  • Statement of Functional Expenses.
Jan 25, 2024

What are the three 3 essential parts of developing a budget? ›

3 Essential Elements of a Budget: People, Data, Process
  • People. A budget can't be created, at its very foundation, by anyone but a human being. ...
  • Data. Obviously data is just as important as the human element – you can't create a budget without raw numbers. ...
  • Process.
Jul 21, 2020

What are program expenses for a nonprofit? ›

Program expenses are any costs related to running the various programs and services offered by a nonprofit organization, as per its mission. For established nonprofits, program expenses often make up the majority of their overall costs.

Should a nonprofit budget be balanced? ›

Non-Profit organizations are not required to have a balanced budget. The following article is in reference to operating budgets and should not be confused with endowment funds that are accumulated, invested and held in perpetuity the income from which is used to fund the organization.

What is the budget process for a nonprofit organization? ›

Budgeting: A 10-Step Checklist
  • Determine timeline. Set target date for board approval. ...
  • Agree on goals. Prioritize program delivery goals. ...
  • Understand current financial status. ...
  • Agree on budget approach. ...
  • Develop draft expense budget. ...
  • Develop draft income budget. ...
  • Review draft budget. ...
  • Approve budget.

What are the startup costs for a nonprofit? ›

How much does it cost to start a nonprofit near me?
StateAvg. CostMax. Cost
California$1,065.00$1,735.00
Colorado$505.50$668.00
Connecticut$612.50$800.00
Delaware$1,781.00$2,448.00
47 more rows

How do nonprofit founders get paid during the first year? ›

The nonprofit founder sits on the board and is NOT paid for the time they put into the organization. Nonprofit board members need to be volunteers (getting paid can get you into some real legal trouble).

What is the profit first budget? ›

Profit First encourages you to continue “bank balance accounting” by first allocating money to profit (and other accounts) so that the actual portion of deposits that are available for expenses and you automatically adjust spending accordingly.

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