Nonprofits often compete for funding through private and government funds. As a result, they are often trying to do more with less. Sometimes, though, efficiency is lost for the sake of expense, which can end up having the opposite effect. Here are three things nonprofits can do to gain potential efficiency and save money down the road.
1. Invest in Technology
Technology and hardware are considered expensive investments, but these are often offset by the added efficiency gains. One example is accufund nonprofit accounting software and another is a good customer relationship management tool. SaaS solutions offer cloud-based options that streamline processes and create ease of use for employees.
2. Engage in Strategic Planning
Smaller nonprofits, especially those in ministry, can sometimes have passionate hearts but lack business acumen. Starting off your nonprofit or your fiscal year with a solid strategic plan lays the groundwork for the year(s) ahead. The process sets vision, attaches goals to the vision and assigns ownership to parties, which then forms the basis for ongoing meetings and check-ins throughout the year. Set the focus right from the start and ensure you and your team are all headed toward a shared goal.
3. Enlist the Right Board Members
Nonprofits live or die, as do many businesses, as a result of their leadership. The type of board, and the members comprising the board, is vital to the health of the organization overall. Do not cut corners on board member recruitment or development. Identify the any gaps you have in skillset or leadership style and be intentional about filling the gap with the right person. The ideal person will have the skills you seek and share your passion for the cause.
Nonprofit work does not have to be antiquated and inefficient. Working smarter, not harder, may require some upfront cost and time, but it can yield greater returns on the investment. Technology investments, strategic planning, and board development are all important factors in nonprofit success.