Practical Strategies for Not-for-Profits to Stay Afloat in Challenging Times

The current environment continues to pose unprecedented challenges for not-for-profits, particularly those in the digital equity space. With rising operational costs, donor fatigue, and an uncertain economic outlook, many not-for-profits are feeling the pressure not just to survive but to thrive in a rapidly changing landscape. While it’s tempting to look outward for solutions—and to be fair, the looming cessation of government funding is significant—it's also important for not-for-profits to take a good, hard look inward at their strategic goals, financial health, and operational models. Here are some tangible steps to consider:

Reevaluate Your Strategic Goals
When times are tough, reassessing your organisation’s strategic goals can help with focus. Are they still aligned with the current environment? The world has changed rapidly, and your goals need to reflect that. Ask yourself:

• Are we focusing on the right priorities?

• Do our current goals reflect the most pressing needs of the communities we serve?

• Are there areas where we can pivot to better meet demand?

For example, if your core mission is digital equity, consider whether expanding your service offerings to include training programmes for commercial businesses might bring in additional revenue streams without straying from your mission.

Streamline Costs: Do You Really Need That Office?
It’s also a good time to scrutinise every part of your budget and ask the tough questions. One area ripe for cost savings is real estate. With remote work now more widely accepted, do you still need that physical office space? Many not-for-profits have significantly reduced costs by moving to a fully remote or hybrid model. Reducing overheads like rent, utilities, and office supplies can free up resources to focus on programme delivery.

Other cost-cutting measures could include:

• Renegotiating contracts with service providers.

• Consolidating software licences.

• Shifting from physical events to virtual ones, which tend to be more cost-effective.

Leverage Partnerships to Amplify Impact
Rather than increasing your delivery scope, embrace partnerships that complement your capabilities. You don’t have to do it all on your own. By collaborating with other organisations—whether not-for-profits, commercial entities, or educational institutions—you can pool resources, expand your reach, and offer more comprehensive services.

For example, a digital equity initiative might partner with a tech company to provide services for their customers as part of a package. Likewise, collaborating with educational providers could help you launch new training programmes without the overhead of creating them from scratch.

Embrace Technology and Automation
Leaning into technology can help you do more with less. Automation tools, for instance, can streamline administrative tasks, freeing up time and resources to focus on more impactful activities. Consider:

• Automating donation processes to make it easier for people to give regularly.

• Using project management tools to keep your team aligned and reduce the back-and-forth on tasks.

• Integrating CRM systems to manage donor and stakeholder relationships more efficiently.

GenAI (Generative AI) offers an exciting new frontier for not-for-profits, enabling more efficient content creation, data analysis, and communication. For example:

• Content Generation: Use GenAI to streamline the creation of blog posts, newsletters, and reports, freeing up staff to focus on mission-critical tasks.

• Donor and Impact Reports: Automate personalised donor reports or impact updates by generating data-driven insights and summaries.

• Chatbots for Engagement: Implement AI-driven chatbots on your website to handle frequently asked questions, guide visitors to resources, or facilitate donations.

By incorporating GenAI into your workflow, you can reduce the time spent on manual, repetitive tasks and allocate more resources towards the strategic growth of your organisation.

Invest in Donor Retention
It's often more cost-effective to retain existing donors than to acquire new ones. Build stronger relationships with your current supporters by:

• Personalising Communications: Tailor your messaging to show donors how their contributions are making a difference.

• Offering Recognition: Publicly recognise donors for their support and involvement.

• Creating Ongoing Engagement: Keep donors informed with regular updates, events, or exclusive opportunities for involvement, like volunteering or joining advisory boards.

But Wait, There’s More
The list above is just a starting point. There are many other strategies not-for-profits could be considering:

• Confirming and focusing on core strengths.

• Staying flexible and open to change.

• Strengthening your online presence.

• Leveraging/building a volunteer network.

• Exploring different grant schemes.

• Developing impact measures (something DECA is working on for the whole community to utilise).

• Engaging in advocacy measures (another initiative DECA is working on for the community).

• Storytelling.

The challenges facing not-for-profits today are daunting, but they are not insurmountable. By taking a clear-eyed look at your strategy, cutting unnecessary costs, leveraging partnerships, and exploring new revenue streams, your organisation can navigate these uncertain times and continue to make a meaningful impact. Now is the time to adapt, innovate, and build a more sustainable future for the work that matters most.