January 22, 2025 by Michelle

5 Things Nonprofits Can Learn From Small Businesses

Several years go, I was chatting with one of the then-muckitymucks at one of our favorite local nonprofits here in Denver. She looked me dead in the face and said “Michelle, be careful. If you work with nonprofits long enough, eventually you’ll become one.”

That was obviously meant as a joke – her organization was well-funded and they budgeted amply for their web and marketing. But there was some truth in there – some nugget about the gritty hard parts of nonprofiteering. Sometimes the budgets get squeezed to the point of ARGGGGGHHH levels of frustration.

At New Why, we’ve been working with both nonprofits and small businesses for over a decade, and along the way we’ve definitely picked up wisdom from both sectors that can benefit the other. Here are some of the most valuable nuggets that small businesses have a better handle on that nonprofits.

 

1. Focus Upstream, Not Downstream

In small businesses, the most important metrics we pay attention to aren’t how much money we brought in last month, or what our margins were on that project. Those are incredibly important, but they’re lagging indicators. They show us how we performed, but give us very little insight into how we will perform.

What are the numbers for us that impact that bottom line? For us the big ones are the number of contact form submissions, or booked intro calls. And you know what informs those? The amount of web traffic we get and the amount of folks who receive our newsletters and other emails. And those can be impacted by our social media engagement.

For nonprofits, you want to look closely at those leading indicators, and focus on growing those. If you know that 10% of the folks in your newsletter list will give to you on Giving Tuesday, would you rather have 500 people on that list, or 5000? Change those upstream numbers, and you change the downstream ones!

2. You’re (Probably) Too Worried About Being “Pushy”

A nonprofit director of development taking a compliment from her boss who’s thrilled with this quarter’s fundraising.

Let’s be real: nonprofits often hesitate to ask for donations because they don’t want to come across as pushy. But here’s the thing: small businesses? They don’t apologize for asking you to buy what they’re selling. They know if they don’t tell you about their product, you won’t buy it.

Nonprofits can adopt the same mindset. Asking isn’t pushy—it’s necessary. People want to support causes they care about, but they need a little nudge. A well-timed ask paired with a compelling story? That’s not pushy. That’s effective.

3. Your Existing Donors Are Your Greatest Potential Donors

Animated GIF from Arrested Development with George Sr. saying There's always money in the banana stand.

Best business advice you’ll get all day.

In our business, we are incredibly grateful for our existing clients for plenty of reasons: repeat business, referrals, and those amazing moments when they give us glowing testimonials. We know the value of nurturing those relationships.

Nonprofits often pour so much energy into finding new donors that they forget about the ones who are already on board with their mission. Your existing donors are already invested in your mission—they’re the perfect audience to ask for continued support, larger gifts, or even recurring donations.

Engage them, thank them, and show them the impact of their contributions. When people feel appreciated and see the difference they’ve made, they’re more likely to give again.

4. Grow. That. List.

Want to see a small business owner get excited? Ask them about lead capture. They’ll tell you every website visitor is a potential customer—or for nonprofits, a potential donor, volunteer, or advocate.

Take a page from their book and make sure your website is set up to capture leads. Offer a free resource, an exclusive update, or a good ol’ fashioned newsletter in exchange for an email address. The bigger your list, the better your chances of turning casual visitors into long-term supporters.

5. Leverage That List With A Great CRM

Speaking of email lists, small businesses have mastered the art of the follow-up, and most use a well-tuned CRM to make that happen. A great CRM helps you track engagement, personalize outreach, and keep your supporters feeling connected.

If you’re already using a CRM – GREAT! If not, drop us a line. Our Summit CRM has been optimized for nonprofits, and can be customized to do just about anything you need to nurture your community of volunteers, donors, and other stakeholders.

It’s All About Connections

Nonprofits and small businesses may seem like complete opposites, but there’s a lot of crossover when it comes to making the most of your resources and building communities. From focusing on the right metrics to growing your email list, leveraging a great CRM, and not being afraid to ask for support, nonprofits can borrow plenty of strategies from small business to expand their impact.

Ultimately, it’s all about building connections to maximize impact. Whether that’s by nurturing relationships with your existing donors, expanding your reach through email, or making data-driven decisions, every step adds up to big change.

And remember: you don’t have to figure it all out alone. Tools like Summit and partners like New Why are here to help you deal with the fiddly bits so you can focus on your mission.

What’s one small business strategy you’re excited to try for your nonprofit? Let us know in the comments—or better yet, drop us a line.

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