Nonprofits are organizations owned by shareholders and with no intention to earn profits. Rather, they seek to gain revenue to distribute for programs, grants and other support systems in society. While nonprofits are not required to earn profits by law, they have financial reporting systems at their disposal that helps them understand and report their financial statement. With auditing being a requirement of nonprofits, just like the for-profits, auditors and grantors, as well as the board of directors, might demand reports concerning the nonprofit’s financial health and the viability of the courses they are participating in. These financial documents are key to every nonprofit in the US.

Developing a funding strategy for a nonprofit is a challenge that is sometimes hard to surmount. For a nonprofit to be successful, it must have a proper funding model that ensures it is liquid and can fund its operations, mission and vision. These models do not have to be general to be useful. A funding model is a methodological and standardized method of building a reliable revenue base to support an organization's core programs and services. Although many nonprofits seek funding from various sources, research has shown that 90 percent of the largest embraced funding models built around a single revenue source. Here are a few funding models you can consider for your nonprofit.

A strategic plan for a nonprofit is the formal process created by nonprofits to accomplish their goals and objectives set up at the beginning of the year. It is a guiding document that organizations use to convert their goals into actions. Accordingly, this tool helps you define where your organization intends to go and the actions that can be taken to reach the destination. While most people associate strategic planning with for-profits, nonprofits too must have a strategic plan to help them define where their organizations want to go and what they should do to achieve their mission statements. Here is the process of creating a strategic plan for your nonprofit.