“As contributions and other revenue sources have become scarce in recent years, many nonprofits face short- and long-term financial challenges. Many are under pressure to “do more with less,” leading administrators and finance committees to explore multiple options to reduce costs and improve efficiency.” - John Wooldridge

While we are talking about nonprofits, this same concept can be applied to any growing business.

Think about all that entails when funding a department within your nonprofit. You have to consider equipment, salaries, office space, resources, supplies, etc. This endless list will leave you banging your head against the wall wondering if you are financially ready for an in-house staff. Don’t get me wrong, there are numerous positives to having employees that are 100% devoted to your cause within their specialty. However, it really boils down to the stage of your nonprofit. Where are you in terms of finances? Are you looking for increased productivity but within a scarce budget?

This is where outsourcing is key. Outsourcing can both decrease costs and improve efficiency.

Decrease Costs & Improve Efficiency

Take a look at your nonprofit on a day to day and distinguish which elements of the nonprofit are considered core to the mission. Keep those in-house as those team members should live and breathe your nonprofit’s purpose.

Many organizations outsource operational functions like accounting, payroll, internet technology, marketing, etc. There are companies out there with teams built for managing multiple clients’ needs and successfully owning their skill. How does this affect your nonprofit? It preserves resources that you can either hold onto or use somewhere else.

Outside of saving money and resources, there are numerous other reasons why your team should outsource functions, including:

  • Access to the latest technology that an organization may not be able to afford on its own

  • Skilled personnel to provide high-quality services in an efficient manner

  • Streamlined services due to advancements in technology

  • Knowledge and guidance in a specific field of expertise

All these reasons ultimately lead to better decisions and a more efficient nonprofit organization.

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