Supporting activities definition
/What are Supporting Activities?
Supporting activities are those actions taken by a nonprofit organization other than program services. Supporting activities typically include fundraising activities, management and general activities, and membership development activities.
Understanding Supporting Activities
Donors prefer to see a low ratio of supporting activities to program services, which indicates that the bulk of their donations are being used to further the main purpose of the organization. This can lead nonprofit managers to incorrectly classify some supporting activities as program services in the accounting records, in order to falsely give donors the impression that the organization is tightly-run and entirely focused on the provision of program services.
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Example of Supporting Activities
An example of supporting activities can be seen in the operations of a food bank. While its primary mission is to provide food assistance to those in need (program services), it also engages in various supporting activities to ensure its sustainability and effectiveness, which are as follows:
Fundraising Activities
The food bank organizes an annual charity gala and crowdfunding campaigns to raise funds for purchasing food and operational costs.
It applies for grants from government agencies and private foundations to secure additional financial support.
Volunteers and staff manage donor relations, sending thank-you letters and impact reports to encourage continued giving.
Management and General Operations
The executive director and administrative staff oversee budgeting, compliance, and strategic planning to keep the organization running efficiently.
The nonprofit conducts regular board meetings to review financial statements and make key decisions about future programs.
Staff members ensure compliance with IRS regulations, including preparing Form 990 tax filings and financial audits.
Marketing and Public Relations
The food bank maintains a website and social media accounts to raise awareness and engage with the community.
It collaborates with local news outlets to highlight hunger issues and share success stories of individuals helped by the organization.
Staff and volunteers create newsletters and promotional materials to educate the public and attract new donors and partners.
Each of these supporting activities plays a crucial role in ensuring that the nonprofit can continue delivering its primary services effectively. Without proper fundraising, management, and outreach, the food bank would struggle to sustain its mission and expand its impact.