6 Strategies Nonprofits Can Use to Weather Challenges

From Bloomerang

Nonprofit organizations are known for stretching their resources as far as they can go, trying to squeeze the most out of every penny. During times of uncertainty, organizations have historically adjusted their budgets and made decisions to help them stay afloat. For instance, nonprofits are currently battling increasing inflation rates.

Therefore, your nonprofit is likely constantly searching for ways to address current challenging conditions while also adjusting to the changing fundraising landscape that emerged over the last couple of years. That’s why we’ll discuss opportunities for your nonprofit to continue raising funds, hosting events, and adapting to the current fundraising landscape during hard times. We recommend taking the following steps:

1. Review your most recent budget.
2. Maximize your fundraising efforts.
3. Address cost-of-living increases to retain your employees.
4. Get organized and look ahead.
5. Adapt to the latest trends.
6. Make employees feel valued.

Hard economic times can be especially challenging for nonprofits that work with tight budgets. Let’s dive in to learn more about how your nonprofit can cut costs and generate more revenue to make a greater impact on your mission.

1. Review your most recent budget.

Your team should meet to discuss current events that may be impacting your budget.

When you meet, discuss any changes you need to make based on the information you have and how it’s affecting your fundraising efforts. For example, if your nonprofit had budgeted a certain amount for your next event venue, but the venue prices have increased, you may need to adjust the amount you set aside for that event or start considering other venue locations.

Make sure every department is on board for the changes you’ll need to implement given budget updates. For example:

• Your executive team should assess if larger goals and priorities are still attainable if your budget is tighter than usual.
• Your fundraising team should regularly assess the success of your campaigns and opportunities for improvement based on economic changes and other current events and update the rest of the staff so you can adapt your strategies accordingly.
• Your accounting team should allocate funds according to the priorities of the executive team and communicate any restrictions from major gifts or grants that may impact this allocation.

Implement policies that will encourage additional communication amongst all of your teams so that everyone is on the same page about your financial situation. This will help you avoid the confusion about allocations or priorities that can lead to budgetary mistakes.

2. Maximize your fundraising efforts.

Think back to 2020. When the pandemic first began, many nonprofit professionals advised organizations to continue fundraising. As organizations continued to ask for support, we learned a valuable lesson: Even in hard times, people will donate to the causes they care about and the missions they want to see carried out.

While everyone is encountering challenges with inflation, we encourage you to continue asking for gifts from your supporters. Communicate the challenges you’re encountering and tie your appeals directly to your most immediate needs.

Additionally, you should take proactive steps to help increase your fundraising return on investment (ROI). Here are some ideas to increase your ROI:

• Ask donors to cover payment processing fees. Bloomerang’s online fundraising guide explains how some fundraising software solutions provide this option directly on your online donation page. When donors cover those fees, you’ll have extra funds to put toward other fundraising initiatives.
• Ask about matching gift eligibility. Matching gifts offer donors a great way to increase their impact without spending more themselves. However, donors don’t often apply for matching gifts because they aren’t aware of their eligibility. Send emails encouraging supporters to research their eligibility with their own organizations or provide access to a matching gift database so they can research it for themselves during the donation process.
• Ask for non-monetary donations. Some of your supporters are also likely struggling with price hikes and increased expenses. Therefore, you should provide alternative options for them to support your mission. Ask for in-kind donations and offer volunteer opportunities so supporters can give to your nonprofit without spending money.

During this time, keep in mind your donor retention strategies as well. Retaining donors is much less expensive than acquiring brand new supporters. Therefore, use your nonprofit CRM to reach out to and ask for contributions from your previous donors.

3. Address cost-of-living increases to retain your employees.

As gas prices, food costs, and other cost-of-living related expenses rise, you must consider how these changes affect your staff financially, with the goal of addressing their needs and doing what you can to keep them at your organization.

RealHR’s guide to nonprofit employee retention explains the immense value in retaining your nonprofit’s staff members, including:

• Reduced turnover and associated costs
• Increased engagement and employee growth over time
• Improved employer brand, which helps with future recruitment
• Overall improvements to your bottom line

For example, your staff may need salary increases and bonuses, additional time off, or other incentives to help get through these financially challenging times. If you need additional help staffing events, conducting office activities, or raising money, try recruiting volunteers to take on some additional work.

4. Get organized and look ahead.

Look over your multi-year strategic plan. Given your current budget, can you continue as planned? Where do you need to adjust your budget? Is it possible to save money by postponing an initiative? Update your budget and strategic plan accordingly.

5. Adapt to the latest trends.

A lot has changed over the last few years. Back a few years ago, the pandemic created a whole new normal for individuals and nonprofits, so it’s essential to adjust how you raise funds for and deliver on your mission to account for these changes.

For example, when meeting with major donors, you may provide the option for them to meet either in person or virtually to discuss your latest programs. This takes into account the comfort level of supporters going into public.

6. Make employees feel valued.

A strong and positive workplace culture helps nonprofits navigate challenges and retain dedicated employees. When staff feel valued and appreciated, they are more likely to stay committed to your organization’s mission, even during difficult times.

Here are some strategies your nonprofit can use to improve your workplace culture:

• Practice open and consistent communication. Regularly check in with your team through one-on-one meetings, team huddles, and feedback sessions. Listen to their concerns, celebrate their successes, and provide constructive feedback. When employees feel heard and understood, they’re more likely to be engaged and motivated.
• Encourage work-life balance. Promote a culture where taking breaks and time off is not only accepted but also encouraged. Implement flexible work schedules, remote work options, and adequate paid time off to help employees manage their personal and professional lives.
• Offer development opportunities. In a survey of 1,200+ employees, 58% of respondents said they’d leave their organization if they didn’t have professional development opportunities. Additionally, MetLife found that 35% of employees rated learning and development among the top three elements of the employee experience. Offer training programs, provide access to online courses, and encourage participation in conferences that align with employees’ career goals. This can foster skill development and create a more capable team.
• Give digital shoutouts. Establish a culture of recognition by sending digital shoutouts. Backed by a recognition greeting card platform, managers can send virtual acknowledgments to celebrate successes, express gratitude, and highlight outstanding work. Plus, some platforms let employees send eCards to their co-workers, as well. This quick and personalized form of recognition makes each recipient feel special.

Creating a supportive work environment boosts morale and organization-wide resilience, so your nonprofit can weather challenges thrown its way.

As a final note, make sure your nonprofit assesses and updates its budget to account for any current economic challenges. Good luck!