Regardless of your opinion on them, Washington’s recent efficiency and cost-cutting measures have prompted many nonprofit leaders to consider how to most effectively use their organization’s precious resources.
Successful nonprofits maximize spending on program expenses while minimizing spending in other areas—to a point. This approach reassures current and prospective donors that the organization is delivering on the mission and being good stewards of their gifts.
Where can you improve efficiency?
- Evaluate fundraising team member performance: Set individual goals, specify lead and lag measures for donor outreach, meetings, solicitations, and gift renewals.
- Study the real cost of events: Do they meet your goals? What is the opportunity cost after you consider the investment in staff time? For more tips on fundraising events click here.
- Vet your print pieces: Make sure they are engaging, relevant, and worth the investment.
- Evaluate your mailing plan and returns: Is snail mail delivery the most effective method to reach your donors?
- Track metrics and analyze the ROI on your digital communications: Are they delivering on your goals?
- Analyze any event sponsorships commitments you have in place: Is that spending positioning your organization most effectively for 2025?
- Take a hard look at streamlining your swag: Is it on brand, useful, and unique?
While it’s valuable to regularly evaluate these programs, there is one caveat: Many organizations don’t spend enough on fundraising. You should allocate 10-15% of your budget to fundraising staff and operations—and even more if you are engaged in a lot of prospecting for new donors.
To position your organization for success, prioritize efficiency while also investing in the people and resources that help communicate your mission and build relationships with donors.
We have more information on effective fundraising planning here.
