Is Your Nonprofit Feeling The Pinch?
It wasn’t long ago that nonprofits struggled to hire enough staff. Now, with shrinking federal grants and looming budget gaps, layoffs might seem inevitable. But letting go of valuable team members — and the mission-critical programs they support — doesn’t have to be the answer. Instead, consider these seven practical ways to trim nonprofit expenses while keeping your team intact.
Read Also: How To Build Up Your Nonprofit’s Operating Reserves Amid Uncertainty
Is It Time To Reevaluate Your Expenses?
1. Adjust Benefits & Wages Thoughtfully
Before layoffs, explore reducing hours or pausing certain benefits. You could also trim wages, especially at the management level. Be transparent — explain these steps are to avoid layoffs and, if possible, share a timeline for returning to normal.
2. Embrace Remote Work To Save Big
Letting staff work from home can slash overhead costs such as rent, utilities, insurance, and maintenance, freeing up funds without cutting jobs.
3. Negotiate Smarter Lease Terms
If your team needs to stay on-site, talk to your landlord about better lease terms, especially if your lease is nearing its end. With many commercial spaces still vacant post-COVID, you might secure rent reductions or breaks.
4. Streamline By Consolidating Locations
Running multiple sites? Consider merging operations into one location and closing extra facilities to significantly reduce expenses.
5. Turn Real Estate Into Revenue
If your nonprofit owns property, think about selling, downsizing, or renting out unused space to other organizations to boost income.
6. Optimize Vendor Relationships
Review your contracts — remote work or site consolidation might reduce your need for certain goods or services. Watch out for cancellation penalties, but look for ways to consolidate purchases, negotiate nonprofit discounts, or even ask vendors to donate services.
7. Team Up To Share Costs
Explore cost-sharing partnerships with other organizations, nonprofit or otherwise. Merging with a charity that aligns with your mission could also streamline expenses while expanding impact.
Take Action Now—We’re Here to Help
Facing funding cuts and a budget crunch? You don’t have to navigate this alone. Contact GBQ’s nonprofit services team today to learn about ways to slash expenses and uncover new revenue streams. Message GBQ today.
