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Money Saving Strategies for Nonprofit Organizations

A mission-driven nonprofit organization has to use its res wisely. When an organization relies on donations and grant funding, it has to be able to demonstrate outstanding financial management in order to continue obtaining funding in the future.

Many grant programs have very stringent reporting requirements, and the individuals responsible for awarding funds want to see that you’ll be able to use your operating capital wisely. Here are some simple but useful ways that nonprofit organizations can save money by reducing administrative costs.

money saving strategies
money saving strategies

Switch to a Voice Over Internet Protocol System

A multi-line landline phone system could very likely cost a nonprofit thousands of dollars a year. When you pay a significant amount for the cost of each phone line and its features, it can really add up. Also, managing a multi-line system can be somewhat complicated and tedious.

The physical connection of phone lines to a hardwired system limits where you can have workstations, and moving people around may result in tangled messes of phone lines. Moreover, setting up certain features such as call-answering and call-forwarding isn’t particularly intuitive on many systems. You may be losing valuable staff time simply on managing an old system.

A VoIP phone service generally offers a more affordable phone service cost for nonprofits and companies of any size. In addition, a virtual phone system is usually a more manageable and user friendly communications solution than traditional phone systems. Employees can easily manage their phone’s features, and they can use their extension from anywhere rather than being tied to a single workstation.

Buy Office Supplies in Bulk

You may be able to realize some considerable savings on basic office supplies when you buy in bulk. Even if a discount is only around five percent, it can really add up over the course of a year.

If you know you’ll use certain supplies eventually, it makes sense to stock up for savings. Purchase from a retailer who serves businesses and offers free or low-cost delivery.

Make the Most of Your Volunteer Workforce

A nonprofit that gets help from volunteers should seek out volunteer candidates who are able to make a contribution in day-to-day office activities. Basic tasks such as answering phones, greeting visitors, and data entry are excellent ways to give volunteers something meaningful and engaging to do without putting too much of a demand on their skills. In fact, you may find that there are a lot of people in your area with substantial administrative experience who would like to help out.

When you’re able to make good use of a volunteer workforce, you free up the rest of your office team to work on other tasks. You’ll effectively enhance your team’s overall productivity without creating any additional expense.

Everything that a nonprofit can do to reduce its overhead costs without compromising the quality of services that it provides to its community can make a big difference in its operating capacity. In effect, saving money on your day-to-day costs frees up more of your res to help further your mission and help more people.

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