Establishing a nonprofit involves making numerous decisions to ensure the organization successfully achieves its mission and objectives. Whether it’s managing the budget, hiring staff, offering services, or selecting board members, each choice should align with the organization’s purpose. When developing programs and services, it’s crucial to take steps that ensure all activities remain aligned with the mission of the organization. Here are some key steps to consider:
Review the mission statement
When creating activities, always be sure to review your mission statement. All programs, services, and activities performed, promoted, or operated by the organization need to meet the standard of supporting the organization’s mission directly or indirectly. For example, if the organization’s mission is to provide support to K-12 students with resources in financial literacy, hosting an event to teach students about savings would be mission-related. If this same organization hosted an event for pet adoption, that would not be mission-related.
Evaluate the purpose of the activity
Once you have reviewed the mission statement, you want to evaluate the activity through a series of questions to ensure its purpose is well thought out and executed. Here are a few high-level questions to ask while creating activities for the organization.
- How does this activity further our mission?
- How does this activity further our charitable objectives?
- How does this activity benefit the demographic we serve?
- Does the organization have the capacity to carry out the activities or do we need to collaborate with others to meet the capacity?
- Will the activity generate income? (Fee for service, purchase of mission-related merchandise, or other)
Several questions can be used to evaluate the purpose of the activity. As best practice, write these questions down and use them to evaluate each activity at its inception, mid-point, and end. This will reduce the opportunity of an activity becoming non-mission related.
Legal and Tax Compliance
When creating an activity for the organization, you must understand the legal and tax implications it may have. Mission-related activities can be classified as tax-exempt while non-mission-related activities may be taxable. The organization will need to know and understand the difference between the two so that it can stay compliant with the state and IRS regulations for 501(C)(3) nonprofit organizations. Having an activity that is out of compliance can jeopardize a nonprofit organization’s status.
Impact on Stakeholders
Finally, consider the impact of the activity on the community and stakeholders. Mission-related activities should have a clear benefit to those the nonprofit aims to serve. If the activity directly supports the target population, it’s more likely to be aligned with the organization’s mission. By regularly evaluating activities against the nonprofit’s mission, leadership can ensure that all efforts are focused on making a positive impact.
Conclusion
Creating activities is necessary for the nonprofit organization to operate and serve the community. Ensuring that the activities meet the standard of being mission-related is a responsibility that should be taken seriously. Using the above information, we encourage you to research, plan, and evaluate any activities that the organization plans to engage in to avoid any unnecessary setbacks.
As consultants, BryteBridge Nonprofit Solutions is here to help you navigate this journey and unlock your nonprofit’s full potential. For more information, join BryteBridge Connect Membership for Live Bootcamps, Webinars, and classes. Speak to a BryteBridge Consultant today by calling 877-857-9002.
