A recent study has found that charities who publicise ministerial support might be negatively impacting their funding opportunities.
In the current economic climate, this is not something many can afford.
Here are some alternative ways for charities to reduce costs and boost funding opportunities.
Embrace technology for operational efficiency
- Automate administrative tasks: Automation isn’t just for large corporations; it can be a game-changer for charities as well. By automating repetitive administrative tasks like data entry, invoicing, and reporting, you can significantly reduce labour costs and free up staff to focus on more impactful activities. An outsourced accounting firm can help with this.
- Virtual events: The pandemic has shown us that virtual events can be just as effective as physical ones. They eliminate the need for venue hire, catering, and travel expenses, making them a cost-effective alternative for fundraising.
Diversify income streams
- Social enterprises: Consider setting up a social enterprise arm that aligns with your charity’s mission. The profits generated can be funnelled back into the charity, providing a sustainable income stream.
- Corporate partnerships: Forming partnerships with businesses can open doors to various funding opportunities, from sponsorship deals to employee fundraising initiatives. Such collaborations can also offer in-kind support, such as free or discounted services, further reducing costs.
Leverage community resources
- Skill-based volunteering: Instead of hiring consultants or specialists, look within your community for volunteers with the skills you need. Whether it’s graphic design, legal advice, or marketing expertise, skill-based volunteering can offer high-value services at no cost.
- Community grants: Local councils and community organisations often provide small grants for community projects. While these may not be substantial, every little helps, and they can sometimes be easier to secure than larger, more competitive grants.
Revisit your procurement strategy
- Bulk purchasing: Buying in bulk or as part of a consortium can lead to significant discounts. This is particularly useful for office supplies, software licenses, and even utilities.
- Negotiate with vendors: Don’t hesitate to negotiate with vendors for better rates or terms. Many are willing to offer discounts to charitable organisations, especially if it means securing a long-term relationship.
Financial sustainability is a complex challenge that requires innovative thinking and a willingness to adapt.
By embracing technology, diversifying income streams, leveraging community resources, revisiting procurement strategies, and utilising social media, charities can find new ways to reduce costs and boost funding opportunities.
These alternative methods not only enhance financial stability but also allow charities to focus on what truly matters: making a positive impact.
Outsourcing your accounting needs can also be a cost-efficient and workload-reducing strategy that boosts the profitability of your charity.
Speak to an expert on funding and cost-saving techniques by contacting one of our team.