Whether you are a church, a charity, or another type of nonprofit, you need to manage your expenses. In addition, you are often under the scrutiny of those giving you funding, making the goal of keeping costs low even more vital.
Harness Volunteer Power: One of the largest expenses an organization has is staff. Whenever possible, consider reaching out for volunteers instead of full time employees. Perhaps a webmaster is willing to donate time to work on your website or maybe an accountant is willing to help with your finances. You don’t know if you don’t ask, so get the word out and create a team of volunteers.
Collect Multiple Forms of Donation: Another way to cut expenses is to accept donations other than cash. Again, you never know what may be available unless you ask. Perhaps someone has extra furniture to donate that would be perfect for your rec room or an older car that is still in good condition for getting to fund raising events.
Periodically Focus on Trimming the Budget: While your inclination might be to focus all your energy on growing membership, donations, or other funding sources, don’t neglect the budget. Go back to your budget throughout the year and compare it the actual dollars spent. Is your phone bill higher than expected? Maybe you could consider a VoIP service instead, so you have a flat monthly rate. Are you paying a lot in credit card fees? Perhaps it would make sense to work to pay off the debt and then move to a prepaid debit card instead to avoid racking up interest.
For more tips and information about managing nonprofit expenses, consider following the Not-For-Profit Accounting Blog
Toffer Grant is PEX's Founder and CEO. He founded PEX in 2006 as a prepaid card solution for small businesses. His background in the prepaid industry began at Clarity Payment Solutions, where he initiated 65 prepaid card programs in consumer, corporate, and emerging verticals of the prepaid card industry.