People like to save money. Whether you’re shopping for clothes in your spare time, or your company is looking to get a discount on office supplies, there’s nothing more thrilling than that feeling of scoring an amazing bargain.
But for nonprofits, finding such cost-saving deals becomes a vital practice for organizational survival.
Because nonprofit organizations are often faced with limited funding, compared to those of their for-profit counterparts, they must learn when and where to look for savings opportunities—while maintaining valuable products and services.
Here are 5 savings tips that can help your nonprofit save money:
- Contact local vendors – Local businesses are often inclined to support one another. The best way to receive either a discount or a donated service is to simply ask. However, make sure that you don’t sacrifice the quality of your purchase just for the sake of saving money.
- Audit on a consistent basis – At least once a year, hire someone to visit your office to help identify any cost-saving opportunities (i.e. hand dryers in the restrooms instead of paper towels).
- Establish and stick to your budget – Once you create a budget for the year, be sure to communicate it with your team and delegate sub-budgets to the other supervisors so that everyone can better manage their spending. Checking in on the budget each month can also help leaders identify when to expand or lower the budget for the upcoming years.
- Evaluate program effectiveness – Take the time to review which value-added services are being utilized by your customers and which programs could be improved upon. After all, you don’t want to continue spending money on a service that isn’t providing anything beneficial to the consumer.
- Benchmark your unemployment costs – 501(c)(3)s have the unique ability to opt out of the state unemployment tax system and instead pay dollar-for-dollar for their own unemployment claims. Benchmarking your costs can help you identify whether or not your organization is currently subsidizing for-profit companies or state administration costs.
Discover more savings ideas for your nonprofit here.
If you’re a 501(c)(3) with 10+ employees, benchmark your unemployment costs today and get a FREE 2-year savings projection.