Nonprofits are usually harder to run than regular businesses. Not only do they face all the challenges of a usual organization, but they deal with more financial hurdles. Unlike a traditional company, a nonprofit typically can’t focus on profitability. In addition, government funding nowadays is limited in a shrinking economy. Because administrations are slashing budgets — most nonprofits get less funding than they need while some get nothing at all. For example, the provincial government in Ontario, Canada, cut the Ontario Trillium Foundation’s base by $15 million.
To deal with these challenges, it’s critical for your nonprofit to find efficiencies:
1. Adopt Frugality
Make frugality a theme of your organization by minimizing unnecessary expenditures as much as possible to reduce overheads. Hold a meeting with your staff to make sure that they’re on the same page. Use the forum to generate more ideas on how to lower expenses. However, don’t overdo it. Your nonprofit may save a few dollars by closing the coffee machine, but such a drastic step will also hurt company morale and productivity.
An excellent way to reduce expenditures is to join a local trade group in order to gain discounts for office supplies or inventory. Remember, many vendors offer special rates to nonprofits. Take advantage of the status of your company to bargain for the lowest prices.
2. Use the Right Technology
Modern technology is an excellent way to improve efficiencies and reduce operational costs. A robust nonprofit Constituent Relationship Management (CRM) software can be a cost-effective way to take your organization to the next level. For example, one of the best database software for nonprofits is free for organizations that qualify. Even for organizations that don’t qualify for the free version, the software is reasonably priced, surprisingly robust, and scalable.
A powerful nonprofit CRM software can also help you improve efficiencies. For example, you can use your CRM platform to track metrics, break down data, and let the relevant information guide your decision-making.
Likewise, take advantage of popular social media platforms such as Facebook and Instagram that offer nonprofits facilities. With their technology, you can improve your market reach and generate more revenue.
3. Embrace Remote Working
In the age of physical distancing, most organizations are learning that remote working has many benefits. Not only does remote working boost productivity and morale, but it reduces operational costs. As your nonprofit shifts to the digital medium, it will cut fixed costs such as rent, utilities, insurance, and more. Consider a permanent change to remote working if it suits your organization in order to sell unused inventory and equipment.
Of course, it’s important to enforce security measures with remote working. Train your team to secure their computers, avoid unsecured WiFi connections, and use cybersecurity software. Likewise, use a secure nonprofit CRM software for your organization that keeps its cloud databases on renowned infrastructures such as Amazon Web Services (AWS) and offers PA-DSS secured payment processing.
Budgetary concerns in today’s economic climate are certainly increasing for most nonprofits. But by being proactive and using the right technology your organization can continue to thrive.