FINANCIAL STRATEGIES FOR SOCIAL PROFIT ORGANIZATIONS

This checklist is meant as a thinking tool and as a route to action. The list will help you think creatively about your organization’s culture, mission, future, response to immediate financial crises and long-term preparation for the future.

CUT OR CONTROL COSTS

ANALYZE PURCHASING

• Improve purchasing procedures
• Seek in-kind contributions
• Network to get better prices on supplies
• Seek new competitive bids and new suppliers
• Analyze purchases to see if they are necessary
• Simplify paperwork and forms, use electronic files
• Refurbish and reuse supplies

ADJUST PAYABLES

• Consolidate or restructure debt
• Negotiate delayed or reduced payments
• Barter for needed services

EVALUATE FACILITIES AND INFRASTRUCTURE

• Share space or maintenance costs.
• Delay maintenance
• Save space by moving, reducing size or using home offices
• Negotiate for a rent decrease
• Find a cheaper phone system; eliminate toll-free lines
• Eliminate or consolidate newsletter and brochures
• Eliminate vehicles or shift to less costly vehicles
• Save energy

MODIFY STAFFING AND RELATED COSTS

• Reduce hours
• Cut, freeze or delay wages
• Lay off staff; offer voluntary separation; offer unpaid leave; remove poor performers
• Freeze hiring
• Share jobs, increase workload
• Use volunteers and interns
• Hire temporary staff or consultants
• Remove management layers
• Reduce benefits, staff training and staff development
• Limit or eliminate travel
• Cancel subscriptions
• Cancel professional association memberships
• Share staff with other organizations

REDUCE SERVICES

• Analyze your programs and services against your mission and financial goals
• Reduce or eliminate non-core programs
• Limit eligibility for programs
• Reduce or eliminate core programs
• Temporarily shut down some services

INCREASE REVENUES

MANAGE MONEY DIFFERENTLY

• Speed the inflow of cash by invoicing promptly
• Try to get grants earlier than the promised date
• Change management of cash reserves to improve unearned income
• Sell assets
• Spend down reserves
• Borrow money
• Diversify your income sources

INCREASE FEES

• Analyze all the costs of providing a service
• Change fee structure to result in increased income

INITIATE OR ACCELERATE FUNDRAISING

• Research the larger community and current donors to improve response
• Hire development director
• Add special events, fund drives, charitable gambling
• Increase board involvement in fundraising
• Increase planned giving
• Build an endowment
• Find new donors and diversify funding base
• Reach out to under-asked populations
• Collaborate on fund drives
• Mobilize everyone in the search for new resources
• Link with a business or credit card company to receive a percentage of sales
• Seek in-kind contributions that can be converted to cash
• Increase the search for foundation and government grants

EXPAND OR ADD SERVICES

• Boost enrolment in or expand offerings of successful services
• Sell staff expertise and time
• Add income-generating services that fulfill your mission
• Rent office space or equipment to others
• Sell valuable information that others need
• Seek related niche markets
• Charge others for a service you also use
• Develop a catalogue of products used by your organizations and other not-for-profits
• Charge a fee to serve as the fiscal agent for other organizations

INCREASE PRODUCTIVITY

• Provide incentives for productive staff
• Simplify production or services without loss of quality
• Invest in an educated staff
• Research and implement ‘best practice’ in all functions
• Upgrade staff
• Invest in technology that improves productivity