Demistifying Nonprofit Operations
There’s often confusion when it comes to talking about our organization– what we do in the community, and how we operate as a nonprofit. Today, we want to share some clarity about what it means to be a nonprofit, how we work, and why we need your support.
At its core, being a nonprofit means we exist to serve a mission, not to make a profit. For the Community Cycling Center, our mission is to broaden access to bicycling and its benefits. This mission is our guiding star, but it’s also challenging to sustain without the resources typically available to for-profit businesses.
There are many different ways to run a nonprofit but every organization has to have a board of directors. These are volunteers who are ultimately in charge of the organization. They oversee the hiring of directors(in our case just the Executive Director), and are responsible for the financial health of an organization. The Executive Director(ED) is a paid employee and reports to the board. In our current structure, the ED is responsible for the hiring and management of additional staff. Many small or young nonprofits operate solely on the volunteer labor of their board members. It’s common for board members’ tasks to change as an organization grows, but they remain the head-stewards of the organization. The diagram below shows a leadership structure typical to many nonprofit organizations.
Like most nonprofits, we rely on a combination of individual contributions, grants, government contracts, and earned income (in our case, from our bike shop) to fund our work. These revenue sources are unpredictable and often come with strict stipulations. This unpredictability is why individual donations are crucial—they provide us with the flexibility to keep our programs running when other funding sources fall short.
Running a nonprofit comes with significant costs. It’s not just about materials or space for our programs. It’s also about paying the talented staff who work hard every day to keep those programs going. We rely on the generosity of people like you to bridge the gap, ensuring we can continue providing services that empower and uplift our community.
The chart below illustrates the current diversity of our revenue sources.
Individual Contributions – Financial contributions made by individuals.
Corporate Contributions – Financial contributions made by corporations.
Government Contracts – Agreements with local governments to provide specific programming or services.These are often on a reimbursement basis, meaning that we do not receive the funding until after providing the programming.
Foundation Grants – Funding from public and private charitable foundations, usually to provide specific programming or services. Grants can provide a hefty sum of money for individual or ongoing projects but they also require a lengthy and competitive application process. They are also often distributed by way of reimbursement.
Program Service Revenue – Income from charging a fee to other organizations for services we provide. This is relevant when another organization has funding for a particular project and needs a partner organization to deliver the services.
Bike Shop Revenue – Income generated by all sales in the bike shop. This includes bicycles, parts, accessories, service, and membership fees.
We’ve set a goal to raise $54,297 by November 1st to ensure we can continue our work. Your support matters more than ever right now. Every donation helps us push through financial uncertainty, allowing us to plan for the future and grow in ways that make a lasting impact.
Donate today and help us keep the wheels turning for the future of the Community Cycling Center.