It may be hard to believe, but when starting up nonprofit and for-profit organizations, managers are often able to use the same business forecasting tools. In fact, an article for The Wall Street Journal took some insights from Paul Graham, founder of elite accelerator program Y Combinator, who argued that the two types of enterprises are very similar.

"I was talking to a friend who wanted to do a nonprofit project and I realized I was giving exactly the same advice I'd be giving to a startup," Graham told the newspaper.

Another characteristic shared by nonprofits and for-profit businesses is that they both must fight for funding, and they have to know how much resourcing is needed to get off the ground. Nonprofits often have to lean on donations, while other firms can depend on investors while in their startup phase. But in both instances, it's important for them to protect themselves by having enough money to fall back on when capital is scarce. Below is a list of tips from Inc. magazine that managers at nonprofits can use to make sure they are using the right sources of capital.

Continue fundraising
Even when it seems things are going well at the nonprofit, it's imperative to raise money at all phases of the business. The magazine said planning for the worst is the best strategy at nonprofits because managers will never know the next time they will be able to come across capital. The economy and a number of other factors can limit the funding nonprofits will have at their disposal, so continuing to raise money at all times is a strong strategy.

Choose venture capitalists wisely
Managers at nonprofit firms will have their opportunities to partner with venture capitalists to help them get their organizations off the ground. However, selecting the right ones isn't as easy as it may seem. According to the magazine, VC firms can fail just like any other business, so not only should managers at nonprofits be picky about who they go into business with, but they should also do their due diligence in researching every VC who offers to provide them with capital.

Look for more sources of capital
Nonprofits organizations are often able to grow depending on the amount of capital they are able to bring in. That is why it's important to continue seeking out funds from multiple sources. By having a number of different investors, managers at nonprofits will have several places to look when they need some extra cash.

Having the necessary capital at hand with give nonprofit organizations the opportunity to fund their cause and make a difference in the lives of less fortunate people. By following the above tips, decision-makers at nonprofits will no longer have to be frantic about their funding.