It’s challenging to manage your nonprofit organization’s finances sometimes. However, with some practical advice and planning, you can stay on top of expenses and revenues.
You don’t have to be a financial professional to maximize your organization’s finances. However, with some useful tips, you can learn the finer points of managing financial resources.
Research More Affordable Tech Solutions
You are always looking for ways to save money as a nonprofit organization. One area where you can cut costs is technology solutions and services, like the internet.
Internet and phone service providers understand nonprofits’ unique needs. As such, they offer a variety of affordable solutions specifically tailored for these organizations.
For example, some companies provide low-cost internet for nonprofits that includes access to wireless Internet and mobile hotspot devices. Depending on the communities and causes you serve, they could also qualify for more affordable internet services, such as mobile hotspot devices for schools that help bridge the digital divide.
By taking advantage of these affordable tech solutions, you can save your nonprofit organization (and your causes) money that you can use for other important expenses.
Create a Budget and Track Expenses
One of the best ways to manage your nonprofit’s finances is to create a budget. When you have a clear picture of all your incoming and outgoing funds, it is easier to make informed financial decisions.
Track all your expenses, both big and small. This will help you stay on budget and avoid overspending.
You can use budgeting software to track your organization’s income and expenses. This software makes it easy to see where your money is going and adjust your budget as needed.
Accept Online Donations
If you haven’t already, start accepting online donations. This is a great way to increase revenues and reach a wider audience of potential donors.
You can use several online donation platforms, such as PayPal or GoFundMe. Before committing to a platform, do some research to find the right one for your nonprofit organization.
Once you accept online donations, promote the option on your website and social media channels. You can also include a link to your donation page in email newsletters and other marketing materials.
By making it easy for people to donate to your organization, you can generate more funds to support your cause.
Develop a Fundraising Plan
Besides online donations, there are many other ways to raise money for your nonprofit organization. Developing a comprehensive fundraising plan helps you maximize your resources and reach your financial goals.
Some popular fundraising ideas include holding special events, selling merchandise, and launching a crowdfunding campaign. There are many other creative ways to raise money, so explore all your options, and work with your team to develop more creative ideas.
Stay Current on Changes That Affect Funding
The nonprofit sector is constantly changing, so staying current on shifts that could affect your organization’s funding is essential.
For example, the new tax law passed in 2017 included several provisions that impacted nonprofits. Educate yourself on these changes and how they could affect your organization.
You can also sign up for newsletters and other updates from trade associations and funding organizations. Signing up helps you stay informed about changes that could impact your nonprofit’s finances.
Understand the Complete Cost of Delivering Services and Programs
When pricing your services and programs, factor in the complete cost of delivery. This includes all direct and indirect costs, such as employee salaries, rent, and utilities.
By understanding the true cost of delivering your services, you can set prices that cover all your expenses and generate enough revenue to sustain your organization.
By following these tips, you can better manage your organization’s finances and ensure you and your team have the necessary resources to thrive. You can maximize your monetary resources and achieve your organizational goals with careful planning and execution.