The National Charity Information Bureau standards on philanthropy say that a nonprofit board should have no more than one paid staff person as a member. Planning and Budgeting A budget is a plan and it should be one of the first things attended to when organizing a nonprofit organization. How much will it cost to rent space, pay the utilities, purchase or lease equipment and hire staff. And the budget won't be complete until you have a realistic plan for funding your expenses. Funding Nonprofits are funded by both contributed and earned income.
Contributed income can come from individual donations, grants and special fundraising events.
In most cases, earned income is generated by fees paid to the nonprofit for services provided. The first rule of fundraising is to ask. Members of the nonprofit's board of directors should be contributors as should those who benefit from the. services provided. Foundation and government grants are a source of income for nonprofits but not as significant as many believe. Keep this in mind when you consider starting a nonprofit.