Some corporations are reducing costs by laying off employees and closing down production plants. Federal, state and local governments are reducing their budgets. As a result of these shifts, grant award amounts from corporate foundations and governmental agencies sometimes decrease or are eliminated.
Investment funds have suffered from mismanagement at the hands of people such as Bernard Madoff and consequently several grantmaker organizations have been impacted by disappearing assets. Disappearing assets can mean substantial losses and therefore less grant money to give to worthy causes.
Despite this time of economic change it is still possible for non-profit organizations to receive grants to provide needed programs and services. Strategies on strengthening this likelihood are shared below:
Remember That You Are Just As Valuable to Your Funders as They Are to You
As for-profit corporations cut costs, lower taxable income will still be appealing. Giving a portion of profits to non-profit organizations helps corporations to reduce their operating expenses because they do not have to pay as many tax fees. Reduced operating costs can help corporations to recover in difficult times.
Even with budget cuts, federal, state and local grantmakers still have the same objectives of efficiently providing programs and services that serve constituents. Numerous non-profits are useful in accomplishing this goal so agencies will continue to support organizations that make a difference in peoples’ lives.
Carefully reflect on everything that your organization does so that you are prepared to clearly express your worth in grant proposals and applications. Give concrete examples of your performance and show measurable impacts that increase over time.
Focus on Your Work
No matter what the economic outlook, your programs and services are likely still necessary. In fact, your services may be even more important in times when people need more help to improve their lives. Plan to spend your time executing your services and make efforts to make your services more dynamic by exploring ways to offer more services for nearly the same cost as existing services.
Review Your Financial Ties
Confirm whether or not any of your grants are coming from for-profit organizations that have announced lower profit earnings, declared bankruptcy or have reduced staffs. To sustain your programs and services you should be mindful of the possibility that organizations may be unable to fulfill their financial commitments. Anticipate that you may need to develop new financial relationships to continue your activities. Begin to identify and seek out additional grant sources.
Do Your Own Efficiency Analysis
Have your organization review its spending practices and programs to determine whether or not grant funds are truly being spent efficiently. Ask yourself whether or not there are areas where you can cut costs and do research to find out what your options are for purchasing products, rentals and services you need to operate. Grantmakers can potentially be impressed by your improved efficiency and reduced expenses.
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By considering the strategies above your non-profit organization is empowered to remain active during financial strains. Stay abreast of all of the funding opportunities available so that you remain positive and sustain your efforts to provide your programs and services.