5 Financial Tips for Nonprofits
Nonprofit organizations have an unenviable path to survival: They must prove themselves to stakeholders again and again while constantly raising money, optimizing their efficiency and making sure they’re compliant with a laundry list of financial and regulatory rules and guidelines.
This difficult charge makes it essential that nonprofits use every resource at their disposal – and get the most out of every one of those resources.
The following are five financial tips for nonprofits that should make achieving your mission just a little easier.
1. Frequently Review Expenses: Whether it’s in business or in your personal life, you know the importance of maintaining a budget with a detailed look at expenses – and doing your best to stick to it. However, nonprofits sometimes let this fall by the wayside, only really reporting/examining expenses for the annual report. Be more vigilant. Throughout the year, as your organization puts on certain events and brings in products and services from vendors, ask yourself whether the money you’re spending could be better spent – whether it’s simply finding less expensive ways to do the same thing, or finding a new activity that yields better results at the same cost.
2. Keep Donors on Board: Costs vary wildly depending on which nonprofit you’re talking to, but the general thrust you’ll hear is that donor acquisition is pricier than donor retention. And yet, when enthusiastic nonprofit leaders plan out the next year’s budget, all too often they expect new ranks to lift their overall donation number. That’s not to say you shouldn’t try to bring on new members, but also consider the value of spending more money on your current donors. They’re already believers in your cause, and have shown it through their initial gifts. Keep prioritizing those donors, and you’ll hit the pot of gold at the end of the rainbow: the major gifts that tend to come after a few years of connection.
3. Leverage the Internet for Donations: In general, McManamon & Co. is a huge proponent of the paperless office because of the costs it can save businesses and other organizations. That’s one reason to consider an online donation system – and another is the overall trend of younger generations conducting more of their financial transactions online. Network for Good’s platform, for instance, boasts “branded online fundraising pages that attract new donors, increase gift amounts, and drive repeat giving,” with features such as step-by-step guidance, campaign templates and mobile ticketing for events. Qgiv can get you started for no monthly fee (instead taking a cut of every transaction), but its more advanced packages offer everything from text-to-donate, virtual stores and even app-based auctions.
4. Keep the Board Accountable: Board members sometimes enjoy a low-pressure position as mere advisers to a nonprofit. That’s not to downplay the importance of a group of experienced guides, but they can – and often do – more. Consider making board members responsible for helping in fundraising efforts, whether it’s joining the rest of your team in finding traditional financial donations, or using their connections to drum up services or goods donations for important fundraising events.
5. Get Help From the Pros: McManamon & Co. is known for its accounting and other consulting work with small- to midsize businesses. However, we also have a team of nonprofit experts who understand the unique needs of your organization, including the complexity of compliance and the need to demonstrate valuable program outcomes to stakeholders.
So if you’re looking to improve your nonprofit’s performance to make more of a difference in the lives of others, reach out today: You can call 440.892.9088 or contact us online.
Tags: McManamon, nonprofit, small business | Posted in McManamon & Co., nonprofit, paperless office, small business