It’s never been easy to run a successful nonprofit organization, but the last few years have added to the difficulty.
A recent report from CanadaHelps found that the country’s charities are dealing with an “unprecedented strain” caused by declining donations and a growing demand for services caused by the pandemic.
In The Giving Report 2022, Marina Glogovac, President and CEO of CanadaHelps wrote: “Education and conversation is not enough. For that reason, this year’s report is a call to Canadians of all ages to protect our charitable sector through greater engagement and financial gifts.”
But nonprofits can’t just hope they get the donations they need — surviving means taking action to improve their efficiency and attract more donors, said Harmony Hunt, the founder of Tri-Universal Inc.
She founded Tri-Universal to help nonprofits and ethical businesses by taking over many tasks that can be outsourced, as well as offering advice about how nonprofit leaders can improve their strategy.
“There’s no silver bullet solution, but there are always ways that nonprofits can improve how they operate,” she said.
Keep Your Team Small
Nonprofit organizations that remain conservative in their approach to hiring often see greater success and efficiency by keeping their overhead low.
A small team also makes it easier to stay focused on the organization’s services and growth ideas by avoiding the additional employee management and bookkeeping. In addition, too many people on a given committee can slow down the decision-making process..
“That’s especially true for boards of directors, which need to be agile and react quickly. That’s more important in today’s world than ever before,” she said. “Unfortunately, many leadership bodies at nonprofits could improve how quickly they respond, whether it’s in regard to market changes or new ideas for improving services.”
Stay Focused on Services
Nonprofits face a lot of scrutiny, and one of the most common criticisms is that too much money is spent on administrative tasks rather than the nonprofit’s mission.
That’s why nonprofits must be extra careful to ensure that at least a majority of donations are used for positively impacting the community or fulfilling the organization’s larger goals.
Hunt said she and her team have seen several strategies that nonprofits have used for achieving this, including:
- Making employee positions voluntary so that the vast majority of donations are used for services and long term goals.
- Hiring employees that were already involved with the organization or its mission.
- For the employees that must be paid, making it clear that the nonprofit’s goal is to spend as much money as possible on the mission, rather than employees or administration.
The best way to keep your nonprofit’s goals at the forefront is to find donors who feel passionate about your project, and create a team that feels committed to your goals..
Invest Wisely
Successful nonprofits also have smart people handling the budgets.
The earlier that a nonprofit reinvests its profits in its own long term goals, the more resources will be available as the organization grows, she said.
But that requires advanced budgeting and bookkeeping, setting concrete goals for each project, and investments that focus on raising sufficient funds to meet deadlines and service quotas.
“While there are certainly obstacles to success, we’ve seen many nonprofits beat the odds through smart management,” she said. “With the right leadership, it can be done.”
