Running a business in pandemic times is challenging because of evident reasons. Things can get even more daunting if you operate in the non-profit landscape. People have financial constraints, so you cannot expect donations to flow. It can be hard to sustain when the money runs tight. The new normal is here to stay, and you need financial planning to keep your organization afloat. Thankfully, you can follow some wise money advice from experts to survive and sustain through the tough times. Here are the best tips to keep your non-profit organization financially strong through the crisis.
Make Conservative Budget Plans
Wise budget planning is the key to running non-profits successfully. Sticking with conservative budgeting plans can keep you afloat in a critical situation like this one. Ensure agility with budget planning so that you can realign it according to the need of the hour. The approach can keep you going even during disruptions. Cash is king when things aren’t great on the financial front, so conserve as much as you can.
Cut Your Fixed Costs First
The future is hard to forecast during a financial crisis. However, you can stay ready for all contingencies with good planning and preparation. Trim the frivolous expenses as much as possible and negotiate on the essential ones. Start by cutting down the fixed costs for your organization. Create a financial model with details of salaries, expenditures, and variables. Work around the model as you find ways to lower the expenses and reconsider eliminating some.
Seek Long-Term Sustainability
Being conservative with expenditures gives you a good start, but you cannot predict how long the pandemic will last. The best option for non-profits is to seek long-term sustainability to get through the tight spot. You can collaborate with christian financial advisors to get guidance on sustainability. They can show you alternatives to stay afloat besides maintaining control over your expenses. These include virtual events, new programs, and tiered membership. Donor retention is the mainstay of sustainability.
Show That You Deserve Donations
Besides cutting down the bills, you must do your best to pull donations even during the tough times. The best way to do it is by showing you are worthy of donations. When people are pressed for money, they donate less and do it wisely. Pick an aggressive approach in doing good for others. Choose a relevant cause to start with as donations are more likely to flow for initiatives people identify with.
Develop Multiple Revenue Streams
Bringing in revenues is an immense challenge for non-profit organizations in pandemic times. You can consider developing multiple revenue streams to weather difficult seasons. For example, hosting virtual fundraisers or selling e-books is a good idea as physical events are less common these days. You have better chances of funds flowing from different streams.
Most importantly, approach money planning as a daily responsibility rather than a one-time job. With the times being tough, you cannot go slack with budgets and financial plans. Get seasoned experts to advise you and show you the best ways to stay afloat.