Top 10 Little-Known Ways to Trim Down Your Administrative Costs This Summer for Nonprofit Organizations and Associations

Summer is a great time for nonprofit organizations, associations, and not-for-profits to review and cut down on administrative costs. At OTUS, we are diligently going through administrative costs line by line to find areas where we can trim expenses. Here are some often-overlooked strategies to help you save:

1. Sourcing Your Benefit Plan: Many organizations stick with the same benefit plans year after year. However, shopping around and comparing different providers can lead to significant savings. Look for plans that offer the same or better coverage at a lower cost.
2. Replacing Work Cell Phones with Personal Cell Phones: Providing work cell phones can be expensive. Consider issuing a T2200 form which allows employees to write off their cell phone expenses against their income or offering a stipend to employees to use their personal phones for work purposes. This can reduce costs while still ensuring your team stays connected.
3. Outsourcing Accounting Functions: Outsourcing your accounting functions can be a cost-effective way to manage your finances. For example, we worked with a client who lost their full-time CFO and accountant simultaneously. By replacing these roles with a fractional general accountant and a fractional CFO, we helped them save money while still achieving their goals and purposes.
4. Review Insurance Policies: Regularly reviewing your insurance policies can help you identify any unnecessary coverage or potential discounts. Make sure your coverage aligns with your current needs and explore options for bundling policies to save money.
5. Review Various Vendor Contracts: Take the time to review contracts with your current vendors. Negotiating better terms or switching to more cost-effective vendors can lead to substantial savings. Ensure you’re getting the best value for the services you need.
6. Automate Routine Tasks: Implementing automation tools for routine tasks like scheduling, email management, and data entry can save significant time and reduce the need for additional administrative staff. Look into affordable software options that can streamline these processes.
7. Implement a Remote Work Policy: Encouraging remote work, even part-time, can reduce office-related expenses such as utilities, supplies, and maintenance. Evaluate the possibility of downsizing your office space or sharing it with another organization to cut costs further.
8. Equipment Lease: Review your equipment lease agreements, such as printer leases and maintenance contracts. Assess if you need all the equipment you’re leasing or if there are more cost-effective options available.
9. Storage Costs: Many organizations keep boxes of documents from prior years, which can be expensive to store and even more costly to shred. Consider digitizing old records and reducing physical storage needs.
10. Review Lease Agreement: If you still have a lease, explore the possibility of terminating it or negotiating better terms. With the rise of remote work, you may find you no longer need as much office space as before.

By implementing these strategies, nonprofit organizations, associations, and not-for-profits can effectively reduce administrative costs and allocate more resources toward achieving their mission.

Need help implementing any of the list above? Let us know and we’ll help you get on the right track for fall.