Cost-Savings Strategies to Help Non-Profit Organizations Combat the Impact of Inflation
There’s been a great deal of discussion recently about the effects of inflation.
There’s no doubt you’ve felt the pressure at home. It seems as though everything is more expensive — from gas to groceries. These price increases are not only impacting home life but also the workplace, especially for those at the helm of organizations that are responsible for budgeting and operations. Non-profit organizations are not immune to the negative effects of inflation.
Traditionally, an organization’s Boards of Directors primarily focuses on raising more funds to support the non-profit as it works on mission-driven activities; however, as concerns of inflation continue on, it is vital that leadership also consider strategies to stretch their dollars a little bit further to maximize the impact of their budget.
There are several cost-saving strategies that non-profit leaders can use to minimize the impact of inflation.
1. Use your tax-exempt status to save with vendors.
Take the time to ensure that all of your vendors have your tax-exempt information on file and that they are never charging you unnecessary taxes. Remind staff about this process as well and insist they use the non-profit’s tax-exempt code when making purchases for the organization.
2. Take a hard look at your organization’s spending in the first two quarters of the year.
Pull the final numbers and ask yourself: What increased? Are there other vendors you might be able to save money with? Too often, non-profits buy the same items from the same vendors year after year without looking into more cost-effective options. It may be time to think about changing vendors for everything from paper to health insurance.
3. Buy used!
Not everything in your non-profit space needs to be brand new. There are many high-quality, refurbished items available in local stores and online. One of my favorite ways organizations can save is TechSoup, which offers non-profit-only discounts on popular software, hardware, and services. You can also visit online marketplaces, like Facebook, or use a quick Google Search to find refurbished items, like office furniture or technology, near you. You can buy like-new items at a discounted price to save money.
4. Check-in with your employee perks.
While every organization wants to take care of its employees, you may find that your organization has been spending money on under-appreciated benefits. I was once working for an organization that purchased lunch for every staff member every Friday. Once we explained why the organization could no longer sustain the practice, we found more effective ways to show our appreciation that were actually much cheaper. Is your organization spending a high dollar amount on an appreciation service that can be swapped for something just as meaningful but is more cost-efficient?
5. Consider outsourcing currently-open positions.
While a dedicated employee is a great option when the position requires an internal stakeholder, consider hiring temporary contractors to fill open positions. Hiring contractors is typically less expensive considering that your organization doesn’t have to pay benefits or time-off, so if having an external contractor is an option, consider it as both a long- and short-term solution.
Ultimately, non-profit organizations should always closely monitor their budget with a focus on the funds that are being expended. Given the current state of our economy and with inflation on the rise, it is prudent to make this a standard practice.
The Killoe Group has worked with several non-profit organizations to strategize for future growth. To learn more about these services, contact us.
About the author
Michael J. Buckley, CFRE is a career fundraising professional and Founder and Managing Partner of The Killoe Group. His firm assists nonprofit organizations increase revenue, exposure and capacity through smart, data driven, successive decisions and effective planning. Mike’s experience and passion for the profession of fundraising have made him a sought-after speaker, consultant and presenter. The Killoe Group’s broad experiences include annual campaign audits and management, capital campaign leadership, feasibility studies, interim program leadership, board governance, strategic planning and capacity building.