I am the CEO of MEBO International; the leader of Skingenix; and co-founder of the Human Heritage Project.
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When inflation begins to rise, for-profit businesses have an easier time mitigating the adverse effects. For instance, an online apparel brand may raise prices or shipping rates to cover economic fluctuations. However, it can be more challenging for nonprofit leaders to figure out how to navigate a world of increasing costs while still achieving their mission.
What specifically makes nonprofits particularly vulnerable to inflation? For one, many nonprofits focus on meeting with their supporters and donors in person. Even if those meetings occur locally, they can be logistically and financially demanding. And if the meeting is a large event, like a 5K race or gala, it can end up being more expensive as inflation grows.
Another point of vulnerability is that though nonprofits can ask for bigger donations, those donations might not stretch as far. Plus, donors may end up sheltering and stewarding their money, making them less likely to increase their giving during times of high inflation. Consequently, the nonprofit isn’t able to serve as effectively or efficiently.
So what can your nonprofit do to mitigate the financial challenges you may be facing due to inflation? The following strategies can help you thrive, even if you have fewer dollars to work with.
1. Change the venue for high-priced meetings and events.
Do you ordinarily host fundraisers at pricey hotels or convention facilities? Consider finding another venue or even setting up your event online. Explain to your supporters that you’re making changes so that their donations are optimized and put to the best use. The more open you are about communicating, the better.
One word of advice, though: If you are moving everything online, make sure your event is powerful, appealing and memorable. Get creative by having world-class speakers or interesting breakout sessions and entertainment. You may be cutting your cost, but you shouldn’t cut down on the event attendee experience.
2. Consider relocating to a virtual working environment.
Is your nonprofit operating out of a brick-and-mortar location? Would it be possible to move some or all of your operations online? Allowing everyone to work remotely could dramatically reduce your operating costs. From rent to utilities, you could save quite a bit.
Even if you can’t fully relocate to an all-online working environment, letting employees and volunteers operate remotely at least some of the time can still make a difference. You could significantly reduce your monthly bills if you’re not paying to heat or cool your office a few days a week.
3. Stay strong with your marketing, advertising and branding efforts.
Pulling back on your marketing campaigns during an inflationary period can be tempting. Don’t give in to the temptation, though. Consistent marketing will help keep your branding high and build recognition for—and confidence in—your nonprofit.
During tough financial times, you can certainly reduce the amount of your paid digital and offline marketing spend, just don’t discontinue all your marketing efforts. Instead, focus on what you can do in-house for less, which will still give you some organic impact. For instance, you may want to be more diligent about leaning into lower-cost marketing vehicles like posting regularly on social media, adding videos to your YouTube channel or populating your nonprofit website with new articles and other content.
Inflation is a challenge for every type of organization, including nonprofits. With a little planning and innovative thinking, you and your team can navigate around obstacles and keep doing the best work possible.
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