Money-Saving Ideas

Each month, Nonprofits Assistance Fund hosts the Financial Management Network.  These free, informal gatherings are opportunities for members of the nonprofit community to get together to discuss different financial topics and network with peers. Key takeaways from these discussions will be posted and form an archive to help promote healthy financial practices.

Notes from Money-Saving Ideas (Jan 28, 2009)

During this challenging economic time, we are all looking for ways to trim costs.  Participants shared their own ideas and resources for cutting costs, as well as the importance of factoring in the staff time when making decisions. If you have any additional suggestions, please comment on this resource.

How to Cut Costs

Set a goal

Organizations are at different places, but it's important to set a goal and write it down.

  • How much you could save (or should save) on operational expenses.
  • What are you trying to achieve?
    • Do you need to cut costs to make your budget numbers work?
    • Are you trying to create better cash flow?

Conduct an Internal audit

Assess what you have and why. Find the fluff.

  • Assess your programs
  • Is the way you've always done it still best?
  • Make observations about the contents of drawers, shelves and storage, etc.

Examples:

  • Are all programs and functions still necessary
    • Could they be accomplished differently?
  • Are staffing levels appropriate?
  • Could you use volunteers?
    • Consider whether you have time to manage them
  • How many extra copies of the year 2007/2008 annual report do you have?
  • Supplies
    • Did you really save by buying 6 extra cases or in bulk?
    • Do you have cases of red magic markers?
  • Phone system
    • Do you have extra phones and incoming phone/fax/internet lines?
    • Do you need land lines?
    • Do you need faxes?
  • Examine insurance, legal, and accounting fees
    • Are you paying the right amount? 
    • Insurance - look into benefit packages
  • Leases are you getting the right production from them?
    • Do you need a postage machine?
  • Meetings/Mileage and Food
  • Paper use
    • Paper cups - are they necessary?
    • Do you make double-sided copies?
    • Do you re-use printouts as scratch paper?
    • Could you go paperless?
    • Are there other ways to make reductions?
  • Rent/ Mortgage
    • Factor in moving expenses

Eliminate extras

What can you eliminate?

  • Postage
  • Supplies
  • Fees
  • Leases
Remember to ask for reduced rates. The worst they can say is no.

Ask For Donations

Do you have a published wish list?

Measure your success

Make changes & measure against goals.

  • How much were you able to save?
  • Did you hit your goal?
  • Was it worth the effort? Remember, your time is valuable too.

MCN's Cost Savings Programs

MCN compiles a list of partner vendors who provide cost savings for their member organizations. MCN vets these companies by researching their history, references, and doing price comparisons. 

We encourage you to check out their list of Cost Saving Programs. 

Things to Consider

Comparison Shopping

  • Shop around plans to get the best rates. 
  • It takes time, but will save you money.  
    • It can be overwhelming - identify two or three things to put out to bid each year
    • Be strategic and really do your due diligence 
  • Do we really need that? Do real cost benefit analysis
  • This economy is bad for everyone. If you have a relationship with a vendor, tell them if their bid is high.  They might be willing to match it to keep you business.
  • Consider whether saving money now is worthwhile in the long run
    • Assess the short and long-term implications.
      • For example, look at the deductibles.
      • Are you really saving money?

Other Vendors

Occupancy - supplies, furniture

  • PPL Shop - Project for Pride and Living Surplus store
    www.pplshop.org
    Sign up for their email - you will get an additional 20% discount
  • University of Minnesota Re- Use Facilities Management program
    www1.umn.edu/reuse
    Reuse Program Warehouse
    883 29th Avenue SE
    Minneapolis, MN 55414
    612-626-9152
    Open on Thursdays
  • World Vision Storehouse Twin Cities
    website
    612-623-9234
    School supplies

Software

Marketing

Social media and web-based tools can help your organization save money by cutting down on printing costs.  However, they do require regular staff time. 

Some ways to save costs include:

  • Rather than printing and mailing out hundreds of annual reports, post a PDF to your website.  Then send out an email or postcard with a few highlights the website address.
  • Use online event registration - on your website, facebook, etc
  • Allegra printing offers discounts to nonprofits
  • Take one piece of content and post it multiple places (you will need to tailor it for each medium, but this takes less time than crafting entirely new content)
    • At Nonprofits Assistance Fund, we post our content on our website and/or blog, our facebook page, twitter, and idealist, as well as using email and RSS.
    • Other organizations will select different tools based on their audience and goals.

Example of nonprofits using social media include:

Meetings/Mileage

  • Consider using conference calls or skype instead of traveling to meetings
  • Rental Cars
    • Using rentals can be cheaper than driving when you factor in the cost of gas
    • You can often negotiate a cheap day rate for your organization, especially if you use rentals regularly
    • Time management - getting the rental car takes time, so weigh the value of the additional time against any cost savings
    • Suggestion from a staff member: I ask to be reimbursed for the cost of a day's rental, rather than exact mileage
    • Remember to have a rental policy in place before staff rent
  • Consider HourCar

Professional Services

Salaries/Benefits/Insurance

Other Suggestions

  • Make conservation a part of your organization culture
  • Market rates are down - this is a time to renegotiate your leases and/or contracts
  • Pay attention to your interest rates - you may be eligible for a better rate
  • It may not be worthwhile to courier or overnight grant applications
    • Some funders see this as a waste of resources
    • It can look like you're submitting it at the last minute
  • Just because something is in the budget, that does not mean you need it
    • This is a time to reconsider non-essential items 
  • Benefits for members of the Alliance for Nonprofit Management
  • Gifts In-Kind International

Additional Reading

Interested in Learning More?

View our Resource Collection or check out the Discussion Archive for notes from other Financial Management Networks.

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