The following blog post is the sixth in an 8-part series on inflation. To see the previous post, click here. To see the next post, click here. If you would like to download the entire document, please click here.
Monitor your funding, whether grants or earned income.*
It’s important to track your funding sources and stay informed about any potential shifts or changes that may occur. This is especially true in times of inflation, as economic uncertainty can impact donor behavior and potentially affect the sustainability of your organization’s funding. Here are some steps you can take to stay informed and proactively manage any potential challenges:
- Regularly review your funding sources: Stay up to date on the current and projected levels of inflation in your region and how they may impact your funding sources. This may involve reviewing donor data and analyzing trends to identify any potential areas of concern.
- Communicate with your donors: Reach out to your donors and let them know about the potential impact of inflation on your organization’s budget. Be transparent about any challenges you may be facing and how their support can help you navigate these challenges.
- Diversify your funding sources: Don’t rely on just one or two funding sources. Instead, diversify your funding base by seeking out grants, sponsorships, and other sources of support. This can help mitigate the impact of any potential changes in individual donor behavior.
- Focus on donor retention: In times of economic uncertainty, it’s especially important to focus on retaining your existing donors. Consider implementing strategies such as donor stewardship programs or personalized communication to show your appreciation for their support and encourage continued giving.
By tracking your funding sources and proactively managing any potential challenges, you can ensure that your organization has the resources it needs to continue its important work. With careful planning and a focus on donor retention, you can position your organization for success in the face of inflation and other economic challenges.
Click here to receive the downloadable version of this blog series
Click here to read the previous blog in this series
Click here to read the next blog in this series
Click here to listen to the accompanying I 501(c) You – The Podcast For NonProfit Board Members episode
*Portions of each blog in this blog series were written with the use of artificial intelligence.