Last up in our Rethinking Nonprofit Revenue Series is moving money. If you’re new to this series, start at Part 1: Making Money here!
Now that you’re saving time, and saving and making money, how you distribute your revenue can make or break your efforts up to this point. A budget is important to keep your organization on track with its mission, but it’s equally important to make sure that budget is optimized. You know one of the biggest challenges in the nonprofit sector is that much of your money from reimbursements and grants is restricted, meaning you can only use it to pay for what was designated. Look for revenue sources that can be used in multiple ways, and make sure you’re using them most effectively.
Think of how your organization is currently using unrestricted revenue, and look for ways those dollars can be invested that will support the long term goals of your mission. If you’re able to save time or money in one of the areas suggested previously, look for ways you can reallocate that saved time or money to free up less restricted revenue. Are there ways you can increase productivity or service delivery for areas with fixed revenue or reimbursement that will help you maximize your bottom line? Read on for 4 more questions that will help you move money within your organization more effectively!
Can you Move Money? 4 Big Questions for Nonprofits
How are you using unrestricted revenue?
Are there current revenue sources that can be used in multiple ways, and if so are you using them in the most effective way?
If you are able to save money, or save time, can you use that money or time to free up less restricted revenue?
Are there ways to increase the efficiency of service delivery for areas with fixed revenue or reimbursement?
If thinking through these four questions seems like too much work for your organization – remember that you must invest your resources (time, money and talent) in order to increase them. There are no sustainable shortcuts here.
More on Rethinking Nonprofit Revenue:
Sangfroid Strategy works with organizations to help them learn from where they’ve been, define where they want to go, figure out how to get there, and bring their team on the journey with them! If you want to get serious about Rethinking your Revenue – contact our founder, Heather Lenz, at firstname.lastname@example.org.