HR Workforce Solutions
By Nonprofits, For Nonprofits
Nonprofits are driven by a mission to address societal needs and provide public benefits. This distinguishes them from profit-driven enterprises. While their primary focus isn’t financial gain, nonprofits must still navigate the economic landscape to sustain their operations and fulfill their missions effectively.
So, how do nonprofits make money? What strategies do they employ to fund their vital initiatives and programs?
Let’s dive into the topic of how nonprofits make money to ensure they can continue to make a positive impact on the communities they serve.
How to Make Money as a Nonprofit
In the realm of nonprofit management, the pursuit of financial sustainability is a perpetual endeavor. The following multifaceted strategies and avenues help nonprofits secure the resources necessary to advance their missions effectively. Here’s a look into how to make money as a nonprofit.
Traditional Donations
At the core of nonprofit funding lies the generosity of individuals and corporations. Their contributions fuel the organization’s mission-driven initiatives. These donations, whether large or small, provide the essential lifeline for sustaining operations, funding programs, and driving innovation. They empower nonprofits to make meaningful strides toward societal change.
Cultivating strong donor relationships, implementing effective fundraising campaigns, and showcasing transparent stewardship of funds are key to maximizing the impact of traditional donations. They foster long-term support for the organization’s endeavors. Additionally, demonstrating the tangible outcomes and transformative impact of donor contributions strengthens trust and loyalty. This inspires continued engagement and philanthropic support from both individuals and corporate partners.
Grants
Beyond individual donors, nonprofits often rely on foundation grants and government funding to support their initiatives. These grants offer significant financial backing, enabling nonprofits to undertake ambitious projects, expand their reach and address pressing societal issues. However, securing grants requires meticulous research, strategic alignment with funders’ priorities and robust grant management practices. All of this effort is to ensure compliance, accountability, and sustainable impact. Nonprofits must demonstrate their capacity to deliver measurable outcomes and effectively steward grant funds to maintain credibility and foster future funding opportunities.
Fundraising Events
From galas to auctions and charity walks, fundraising events serve as not only revenue-generating opportunities but are also powerful tools for community engagement and awareness-building. These events create platforms for supporters to rally around the nonprofit’s mission. They forge lasting connections and inspire ongoing support. Nonprofits can amplify their fundraising efforts and broaden their impact by leveraging creative event planning, effective marketing strategies, and volunteer mobilization.
Earned Income
Nonprofits are increasingly exploring alternative revenue streams beyond traditional fundraising methods. Social enterprises, fee-for-service programs, and merchandise sales offer avenues for generating income while advancing the organization’s mission. Whether through the sale of products, services, or experiences, nonprofits can diversify their revenue sources. This revenue helps them achieve greater financial resilience in an ever-changing landscape.
Corporate Sponsorships and Partnerships
Collaborating with businesses presents nonprofits with a myriad of opportunities beyond financial support. Corporate sponsorships and partnerships offer a gateway to expanded visibility and promotional exposure. They enable nonprofits to reach broader audiences and raise awareness for their causes. These collaborations also foster employee engagement. This encourages corporate staff to volunteer, fundraise, or participate in community service initiatives alongside nonprofit personnel.
In addition to financial contributions, businesses often bring valuable resources to the table. Their expertise often includes in-kind donations to access specialized expertise and networks. Through strategic partnerships, nonprofits can leverage these resources to enhance their capacity, innovate their programs, and extend their reach.
Investments
For financially stable nonprofits with a substantial financial base, investments offer the potential for additional income generation and long-term sustainability. Through investments, nonprofits can diversify their revenue streams and build financial reserves to weather economic uncertainties and fund future initiatives. This approach strengthens the organization’s financial footing and enhances its ability to adapt to changing market conditions. The nonprofit is able to seize new opportunities for growth and impact.
Reducing Costs for Nonprofits
The question, “How do nonprofits make money?” is a viable one, but income is not the only concern for these charitable organizations. While revenue generation serves as the lifeblood of nonprofits, prudent management of expenses is equally crucial for long-term sustainability.
By implementing strategies to enhance operational efficiency, nonprofits can streamline processes, reduce waste, and optimize resource utilization. The following are a few strategies nonprofit organizations use to reduce costs:
These concerted efforts not only optimize financial resources but also enhance organizational resilience and agility. Understanding how to make money as a nonprofit involves a combination of revenue generation and cost reduction.
Are You Still Wondering, “How Do Nonprofits Make Money?”
So, how do nonprofits make money? In the dynamic landscape of nonprofit management, the pursuit of both revenue-generating and cost-saving opportunities is critical for organizational success and sustainability. Nonprofits can position themselves for long-term growth and impact by embracing innovative strategies, fostering strategic partnerships, and prioritizing financial stewardship.
We urge nonprofit leaders and stakeholders to harness the insights and recommendations outlined in this guide. You’ll quickly recognize the transformative potential your organization holds for advancing its mission and creating meaningful change. At UST, we empower nonprofits to thrive, inspire, and continue their vital work in building a brighter future for all. For additional support and resources, explore our UST solutions. Our experts will guide you toward operating a more sustainable and impactful nonprofit organization.
Nonprofit organizations form the backbone of societal change. You work tirelessly to advance your causes despite tight budget constraints. It’s crucial for your organization to implement cost-saving strategies that align with your goals and ethics. Through astute financial planning and strategic decision-making, your nonprofit can amplify its impact and extend the reach of its funding. Leveraging historical stability and pooled knowledge, such as entities like UST, your nonprofit can fortify its financial foundation amidst the ever-evolving economic landscape.
Below, we present ten actionable cost-saving strategies designed to support nonprofit leaders in their ongoing efforts to manage budgets more effectively and channel saved resources back into their mission-critical activities.
1. Streamline Operations Through Technology
In an era where digital transformation is vital, investing in technology can lead to considerable long-term savings. Automating mundane tasks reduces labor costs and increases efficiency, allowing staff to focus on more essential, mission-focused work.
2. Harness the Power of Volunteers
Volunteers are an invaluable asset to any organization. They not only bring passion and dedication, but also help save on personnel costs. However, manage volunteers responsibly to ensure their experiences are rewarding and further your cause.
3. Go Green to Save Green
Implementing eco-friendly practices goes beyond the moral benefits; it is also cost-effective. Cutting down on paper use, optimizing energy consumption, and recycling can lead to substantial savings.
4. Opt for Second-Hand Equipment
Before rushing to buy new equipment, consider purchasing quality second-hand items. Not only is this more economical and sustainable, but often you can find barely used resources at a fraction of the cost.
5. Leverage Free or Discounted Services for Nonprofits
Many companies offer discounted or even free services to nonprofits, including software subscriptions, marketing tools, and professional development resources. Take advantage of these opportunities.
6. Invest in Staff Development
While this may seem counterintuitive as a cost-saving measure, training your staff can actually reduce costs by improving efficiency and reducing turnover – both of which are costly in the long term.
7. Collaborate with Other Organizations
Forming alliances with similar nonprofits can lead to sharing of resources, joint grant applications, and mutual support, thereby reducing costs associated with events and projects.
8. Conduct Regular Financial Reviews
Assessing your financial practices regularly can help identify inefficiencies and areas for cost reduction. Keep abreast of financial management best practices and remain compliant with regulations.
9. Optimize Your Fundraising Practices
Ensure your fundraising efforts are as effective as possible by cutting unnecessary costs and using data-driven strategies. Tailor your campaigns to target the most engaged sectors of your donor base.
10. Reevaluate Your Space Needs
If remote work is sustainable, consider downsizing office space or renegotiating lease terms. This can be one of the most immediate ways to reduce fixed costs while maintaining productivity.
Taking these steps can contribute significantly to reducing expenses, but achieving optimum efficiency often requires tailored solutions. That’s where we can step in to assist you further. UST is well-versed in the unique challenges faced by nonprofit organizations and offers expert advice to help you save money, mitigate risk, and increase efficiency.
Don’t leave potential savings on the table. For a more detailed exploration of how these strategies can benefit your organization, and to discover additional, customized solutions for cost-savings, complete ourfree savings analysis. Fill out our free savings analysis form today and start charting a course towards financial sustainability for your nonprofit.
At UST, we’re committed to helping you make every dollar count, underscore your mission, and amplify the change you envision.
Presented by ThinkHR, this on-demand webinar explores President Trump’s first 100 days in office. The presentation will address issues and questions about rescinded Executive Orders, regulatory enforcement agenda changes and legislative moves that could impact your nonprofit’s business operations.
Discover what you need to know and should be doing relating to:
Watch the webinar recording today: http://links.thinkhr.com/Q0FW0oT0Kj1Rn0Wf900v9S0
Want access to more HR-certified webinar opportunities and a live HR hotline? Visit www.chooseust.org/thinkhr/ to sign up for a FREE 30-day trial of the UST HR Workplace, powered by ThinkHR.
Presented by The Council on Accreditation COA, a nonprofit accreditor of human services organizations, this on-demand training is designed for people with little or no knowledge about COA.
The webinar will provide participants with a better understanding of:
Watch the webinar recording today: bit.ly/2kDwGhh
This webinar series is part of UST’s efforts to educate the nonprofit sector. For more learning opportunities, tips and legal updates just for nonprofits, sign up for ourmonthly e-News today!
Since its inception, audiences have come to expect a different kind of experience of being fully embedded in the life of an organization through the worldwide web. Organizations quickly came face-to-face with not only technical and operational issues but content barriers as well, all of which were far more difficult to overcome than expected. Organizations were also dealing with trying to figure out how to remain relevant to audiences looking to the web for their information and quickly learned that their standard marketing materials did not translate to the web. This required organizations not just to repackage what they were producing but also create new ways to transform how audiences receive, process, and interact with content.
The growth of social media over the last several decades has been boundless and continues to grow by staggering leaps. How we communicate with our audience changes on a constant basis and we are forced to adapt quickly. Just pushing a message won’t create a relationship but you are uniquely qualified to provide the perspective and guidance that your potential clients are looking for by creating public value and promoting an intuitive understanding of what your organization is about.
Building a mission-delivery engine requires a thoughtful process and the ability to create dynamic content to meet the needs of your audience. Organizations that know its greatest resource is its understanding of what its audience wants is the stepping stone to successful engagement.
Some helpful tips:
The web is central to how we enable, activate, and resource our mission. With multiple points of views and supporters, we’re enabling results that form something new. Get back to the possibilities that originally inspired us about the web and be intentional by providing a space on the web in which your audience’s needs are met.
For nonprofits, employees’ collaborative efforts are often the key element to mission advancement. But clashing personalities working toward the same goal can lead to resentment and impatience in the work place.
Learning to recognize and understand others’ personality strengths and weaknesses can help you appreciate the diverse environment you work in. Specifically, nonprofits can take advantage of their diversity when it comes to improving their employment procedures and ensuring ongoing structural soundness.
Basic working styles can often be separated into 4 general categories:
Whichever working style team members possess doesn’t really matter by itself. What most affects a nonprofit’s success is the compilation of strengths your team brings to the table and your team’s ability to successfully work together as a cohesive unit. As long as you understand and utilize everyone’s unique abilities, pertinent to your team’s progress, your nonprofit will continue to flourish.
Podcast Description: This podcast discusses how nonprofit organizations might be missing a crucial opportunity for growth and relevance by underutilizing their boards. Jeff De Cagna is an author, speaker and advisor for associations and non-profit organizations across North America and around the world with decades of experience under his belt.
Foresight First LLC is a governing orientation that provides actionable insights on plausible futures by challenging association and non-profit boards to deal productively with the past so they can focus their attention on the future and pursue the generative work of transformation. To learn more about Foresight First LLC, visit their website at www.foresightfirst.io.
To stay up-to-date on the latest best practice tips and cost-saving ideas just for nonprofits, sign up for UST’s monthly eNews: http://www.chooseust.org/
1. Give them room to grow. Employees need to know their duties and their responsibilities are recognized, and that there is a clear path to growth. Recognizing those employees that are eager to take on more can help you craft an upward moving path for them. And remember it’s okay to ask! What do they see themselves doing? What can they offer? Letting them feel involved in their own future gives them confidence in themselves and their leaders.
2. Have mentors. The next leaders are already in our midst. Giving them the tools they need – direct from the experts – is pertinent to maintaining a strong nonprofit sector. Who’s better than leaders within your own organization to provide this? Sometimes assigning a formal mentor to an employee is necessary to build this type of relationship. Consulting with your executives and even executives at other organizations as to who they can stand by and provide career direction, might just open some doors to some true talent development.
3. Ensure a fair workplace. Limited HR staff often means nonprofits are “winging it” when it comes to applying workplace rules. But are the rules fair, and more importantly, do they follow the law? You might think closing the office for a week during Christmas is okay if you require employees to work Saturdays leading up to the holiday (this is a true story), but that would be classified as overtime and not paying them appropriately could cause a damaging lawsuit for your organization. Wrongful terminations are another big source of costly legal exposure.
4. Train your managers to be the best. Employee satisfaction often starts with having the right guidance. Training your managers to be great managers helps provide the framework for the entire organization. People often leave managers, not companies… and because good leaders aren’t born (they’re created), providing leadership education and management-skill training is vital to helping build the leadership an organization needs to retain employees. UST offers 200+ free online training courses for managers and employees when you join the UST Program, which is exclusive to nonprofit organizations.
5. Acknowledge they have lives outside of work. As an employer you might think your role starts and stops during the 9-5 job. But recognizing that life-work balance is important, and giving employees options like flexible hours, working from home occasionally, discounted gym memberships or sponsorship of activities like registration in a race or creating a softball team, can help foster more happiness and productivity at work. With many for-profit companies making these types of moves, it’s important to recognize how the nonprofit sector can provide equally satisfactory jobs for workers. There are all kinds of ways nonprofits make a difference for their employees. Tell us some of your ways on facebook!
Often equipped with fewer resources and a smaller staff size, nonprofit employees tend to feel overworked and stressed out. Because high stress levels can lead to a domino effect of general workplace unhappiness and high turnover rates, it’s imperative that employers take the time to encourage a balance between their work and personal life.
Here are 7 best practices that will help your employees maintain a proper work/life balance:
As a supervisor, your responsibility is to make sure that your employees have the tools and positive work environment they need to efficiently work through their day-to-day tasks. Taking the time to check in with your staff and encourage a balanced lifestyle will not only help your employees stay sane, but also improve general organizational productivity and growth.
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Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
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Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.
UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.
Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.
Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.
The UST HR Workplace powered by ThinkHR empowers nonprofit HR professionals with the guidance they need to be more effective and efficient in their jobs. By providing expert HR advice, thousands of HR templates, hundreds of training courses and an award-winning online library for all workplace concerns, the UST HR Workplace gives nonprofits the knowledge they need to avoid costly risks and liability issues.
“Maintaining risks in the workplace is crucial to any organization but specifically for the nonprofit sector where one unexpected risk can put the organization in a situation they’re unprepared for,” said Donna Groh, Executive Director of UST, “ThinkHR helps nonprofit HR professionals avoid costly litigation with the tools available to them through use of ThinkHR Live, Comply and Learn.”
Staying on top of the latest HR laws and educating employees on organizational policies can help mitigate volatile unemployment claims and reduce costs long-term. Last year alone, UST members took nearly 5,000 online training courses and submitted close to 1,500 HR questions. The most popular resources utilized included Workplace Safety and Harassment Prevention training, Compliance and compensation inquiries, the Employee Handbook Builder and downloadable HR forms.
The UST HR Workplace has been a go-to resource for UST’s participating nonprofit employers since its launch in 2014 and is a priceless support system that helps to save time and money – offered at no additional cost to UST members.
Nonprofits can get a free 30-day trial of the UST HR Workplace powered by ThinkHR by visiting http://www.chooseust.org/thinkhr/.
About UST http://www.chooseust.org/thinkhr/ Founded in 1983, the Unemployment Services Trust UST provides 501c3s with a cost-effective alternative to paying state unemployment taxes. UST participants save millions annually through claims management, hearing representation, claim audits, outplacement services and HR support. Join more than 2,200 nonprofits nationwide and request an Unemployment Cost Analysis at www.ChooseUST.org.