Budget Saving Tips for Fundraising Teams

Co-authored by Stephanie Schwartz, Founder and Principal, Little Bean Group and Matt Manfra, Vice President for Institutional Advancement, Georgian Court University. 

“You have two weeks to cut 10% of your budget or I’ll do it for you.”

No one wants to react under stress to a challenging request like this one, but unfortunately organizational budgets at institutions of higher education as well as organizations and nonprofits around the country have tightened. Those cuts have extended to fundraising and advancement departments as well and will continue into 2021 in the wake of the ongoing COVID-19 pandemic. 

A strong case can be made for not cutting these functions because they produce revenue. However, we are of the belief that everyone must do their part when budgets are tight. As two leaders who have led rounds of budget cuts at multiple institutions, we share this list of tactics that Chief Advancement Officers, Vice Presidents, and organizational leaders can use when deciding how to manage resources in these challenging times. 

Budget cutting is not something leaders relish, but we have curated practical methods that can be utilized during all stages of budget conversations and can be considered by organizations of all sizes and scopes. Some of these smaller concessions truly add up and can provide sustainable, long-term budget relief.  

Going Digital

• Switch to Virtual Events. While it is possible that small outdoor events may be able to take place in 2021, large in person events will likely not be feasible. Use your large event budgets to produce virtual events. While not free, producing a high quality virtual experience will likely cost less than an in-person event. Knowing that larger events will be virtual means there is more lead time to create an event with high production value. But even before going virtual, ask yourself “do we even need to host this event in the first place”? You may discover that your needs have changed for the upcoming year.
• Ditch the Print. Have you been debating cutting your annual magazine to one fewer print issue? Consider moving one issue of a print publication to a digital format and seek feedback on its effectiveness. 
• Cut Meeting Costs. With fewer in-person meetings, your organization is likely saving on catering costs, space rental, and other charges associated with in-person meetings. Since so many organizations are meeting virtually now, can you permanently move your board meetings to a virtual environment? Or, take a small step and permanently move one of your meetings to a virtual one. Who wants to fly to a cold destination in January when you can host your annual January meeting virtually? Some organizations are now realizing that they can actually eliminate a complete meeting from their schedule due to the amount of progress taking place through virtual meetings. 
• Reconsider Giving Gifts To Donors. Gifts for donors are often distributed at events or mailed to donors’ homes. Consider the environment this year and decide if it is appropriate to send gifts. Save money by sending a handwritten note that expresses appreciation for a donor’s generosity or create a digital thank you video that can be sent over email en masse. 

Seek Discounts

• Seek Discounts on Subscriptions. Review the types of publications you receive to see if a digital version is available. These are generally less expensive than print subscriptions. Do you even read these publications? If not, consider a complete cut.
• Ask For a Discount on Services. Consider asking vendors you use regularly if they can offer a small discount for their ongoing services. Or, shop around for a better deal from another vendor. This strategy can apply to database management, wealth screening, printing and more. Businesses are eager to retain clients in this environment and may be able to offer a discount to retain your business. 

Businesses are eager to retain clients in this environment and may be able to offer a discount to retain your business. 

• Review Contracts and Existing Expenses. If the contracted work is not urgent or tied to daily operations, you may be able to reduce the scope of a contract, pause it, or cancel it. Review existing expenses and see what can be reduced or put on hold. It may be possible to renegotiate leases as well as vendor and consultant contracts. 

Personnel

• Determine What Can Be Outsourced. Perhaps you do not need to hire a full time employee right now and can outsource for a few months or a year. It may not be ideal, but it can lead to big savings.
• Review Vacant Lines. Take a look at your organizational chart and identify any vacant positions that could be changed, frozen or eliminated permanently. If the job has been vacant for six months or longer, it is likely some of that work was not an organizational priority. Eliminating vacant positions can present substantial savings.
• Consider Hybrid Positions. As you examine vacant positions, consider retooling open jobs to take on similar functions. Can your annual fund director also manage some stewardship or donor relations functions? In higher education, more alumni directors are taking on annual giving responsibilities, a model that we’ve seen work for organizations of all sizes. 

Be Practical

• Reduce – Or Eliminate – Travel. Despite some indicators that travel may be possible in 2021, it is still unknown at this point and not likely to occur before the second half of the year. For budgetary purposes, consider eliminating all travel for 2021 for professional development, events, and donor visits.
• Review Your Calendar. Do you need to convert the annual event to a virtual gathering? Or, are there other ways to bring people together with greater impact such as small virtual gatherings with university or organizational leadership? Bigger isn’t always better – and it often costs a lot more. Think about new and different ways to achieve the same goals. Bring new staff into brainstorming sessions who otherwise aren’t close to the event planning process to vet new ideas and fresh perspectives, while doubling as a free way to offer professional development opportunities.

Some of these smaller concessions truly add up and can provide sustainable, long-term budget relief.  

• Reimagine Professional Development. Professional development in the fundraising and advancement fields is often delivered through conferences. In lieu of conferences, explore online offerings, many of which are free. Consider tapping into the talent of your team to deliver workshops and coaching on key issues. Giving employees the opportunity to play an active role in their professional development can be a great leadership opportunity and motivator. Consider brushing up on adjacent skills such as Excel, PowerPoint, your database, and any other software you use regularly. And, if a team member participates in a training, ask them to share what they learned with the full team.
• Review Donor-Funded Initiatives. To help the organization’s overall budget, now is a good time to review your donor-funded programs and scholarships to ensure the organization is utilizing all of those dollars to the fullest. Are you having a hard time awarding a certain scholarship? Connecting that scholarship donor with a fundraiser to discuss adjusting parameters will help use more philanthropic financial aid dollars, allowing institutional funds to help another student in need. 
• Talk it Out. As a leader, it is likely you have members of your team who can provide some insights from their perspectives as well. Consider having small group conversations, or one-on-one conversations with your direct reports, regarding ways to find savings. It’s an opportunity to receive feedback and provide your staff with training on how to tackle budget cuts themselves. You can also solicit suggestions over email. 

It is not easy to cut back but there are ways to work around the margins that can make a meaningful budget impact. Being a good steward of resources is an important part of being a good colleague and a good leader.