Nonprofits as Referral Sources

Source: CPA Technology Advisor

While nonprofit clients may hurt your realization percentage, they can become conduits to new for-profit business. Executive directors of nonprofits are often well-connected, and many influential business leaders sit on nonprofits’ boards. Nonprofits also invite business leaders to their fund-raising events.

Using an online system that accesses 990s filed by nonprofits, you can build a database of nonprofits, including contact names, by size of entity. Try to obtain e-mail addresses. If you can’t obtain these, try to get the e-mail addresses of attorneys and others who serve nonprofits.

When developing a message to send to these prospects, remember that the quality of your reports is assumed and therefore gives you no strategic advantage. You must develop a value proposition and a theme.

Send direct mail or e-mail messages frequently, and follow up with phone calls. A change of accountants will occur when the time is right, such as when changes in personnel occur at the nonprofit, or when changes occur in service by the current accounting firm. When these events occur, you will have opportunities if you have created the right exposure for your firm.

From CPA Technology Advisor, October 2005, p. 22. For the complete article, click on the following link: http://www.cpatechnologyadvisor.com/publication/article.jsp?pubId=1&;id=892,