It seems like all we hear in the news lately is inflation, inflation, inflation. Nonprofits already tend to operate on tight budgets, so what can your organization do when prices keep rising? Here are a few ideas to help combat inflation and continue your important work.
Communicate With Your Donors
Be sure that your donors understand the difficulties your organization faces with the rise in prices of everyday goods. Share with your supporters how inflation is specifically affecting your organization. While so many of your donors care so much about what you do, they may not realize the current struggles you are facing and how it may affect the services you provide. Remind them of how important they are to your organization and also how much you appreciate them. It often costs less to retain your existing donors than to attract new ones, so it’s important to keep these lines of communication open during tough times.
Ask for Non-Cash (In-Kind) Contributions
Your donors may be strapped for cash right now, but they still want to support your mission. Let them know if there are other ways they can help, such as donations of non-cash goods or services. Some examples of in-kind donations include computers, furniture, office equipment, food, clothing, building materials, and more. Perhaps one of our supporters is a lawyer who could offer you free legal services. Or maybe they still have a stockpile of toilet paper left over that they could donate! Think creatively about your organization’s needs and how they could be fulfilled without writing a check.
Retain Your Valuable Employees
Many organizations rely on a lean team of dedicated staff members. In a competitive job market, it’s important to retain your best employees and make sure they know how much you value them, even if it means stretching your budget. Don’t forget that your employees are dealing with inflation too. It may seem counterintuitive, but offering attractive compensation and benefits can actually help your organization be more cost-effective. You’ll be able to focus on your mission instead of struggling to fill empty positions and train new employees. A high rate of staff turnover will often cost your organization more money, time, and morale in the long run.
Shake Things Up
Now more than ever, it is important to be creative and think about the way you have been doing things in the past. If your staff have moved to working remotely or in a hybrid fashion, do you still need your old office space? Is there new technology that could streamline some of your processes and free up time for your employees? Is it time to go paperless to get rid of your expensive copy machine?
Inflation or no inflation, it is crucial for your nonprofit to develop a game plan for challenging times. The strategies that served your organization in the past may not be as effective today, so other approaches may need to be considered. A strong nonprofit organization must be creative, flexible, and adaptable to many different economic conditions.