5 Common Areas of Nonprofit Waste and How to Improve

Every nonprofit wants to fulfill its mission. That’s the whole point after all. Despite the passion and drive that so many organizations and individuals have in the nonprofit space, eliminating waste is often not prioritized despite its impact. Inefficiencies, complacency, outdated ways of doing things, and more all add up to less mission fulfillment. Whether it is less money to spend on meals for the hungry, lost time for staff that they could be spent increasing your reach, or simply complacency that slows your organization’s growth and ability to react, eliminating waste is a less glamorous but incredibly effective way to better use what you already have. Improving in these areas will help boost your mission success. In this blog, we take a look at five common areas of waste, why they happen, and how you can avoid them. Let’s take a look. 

Overestimating 

Nonprofits have to answer a lot of questions of “how many.” How many people to expect at a fundraiser, how many direct mailings, how many annual reports to send to donors, how many meals for volunteers, and so on. Many small nonprofits will overestimate what they need. Whether it is planning for too many seats at a fundraising event or funding a direct mail campaign targeting an audience outside their relevant geographic range. Most organizations run on a slim budget, so constant review and adjustment are essential to stay on top of overestimation. Tracking your numbers on all projects and all aspects of the project. Use this to make a reasonable estimate and stick to it. Resist the urge to panic and try to make a buffer by ordering/planning more. 

Inventory 

Inventory waste takes in many shapes and sizes and really comes down to anything you are holding onto and not using. This could be past giveaway/gift items from last year’s gala. Annual reports that are printed and sitting on a shelf. No one is reading them and they are not getting sent to donors. Even volunteer forms that were submitted and are sitting unviewed on someone’s desk with no plan to address them. This is a wasted inventory of volunteer help. Solving this waste problem is partially related to overestimation. Curbing overestimation will help reduce the potential opportunity for inventory waste, but some will still accumulate. Make sure your whole team is on the same page and working to find a use for these accumulated items. Consider if those annual reports could be put to use somewhere (sending them out to donors or potential donors). Don’t let giveaway/gift items sit around and become old. If they are going to simply go to waste in storage, put them to use. Give them to visitors or other interested parties. If you don’t have volunteer opportunities available at the moment, reach out to the volunteer applicants and inform them of your membership program. These are all little ways to eliminate the accumulation of waste in your office and help your organization in the process. 

Movement 

Movement waste can be physical or digital. It is often composed of many small actions adding up to become wasteful of time and resources. For example, a team member could send an email to fifteen staff members and only seven really needed to see the information. These eight other staff members are now stuck in an email thread that will distract them even if only momentarily. Repeat this over several email threads daily or weekly, and it adds up to a lot of wasted time. Another scenario involves ordering materials to an office only to ship them from the office to a remote staff member or some other location. With narrow budgets, extra expenses like these are wasteful to a damaging degree. Other movements could be in offices such as the layout, process for getting documents signed, or access to certain office materials. While many of these may seem small, improving your processes constantly can lead to hours saved over a week which could be hundreds of hours over a year. 

Overworking

Don’t overdo it. Nonprofits are different than normal for-profit, businesses, and we often forget that in the little moments of planning. For example, getting dishes and silverware for an organization where the beneficiaries do not expect that level of service. These could cost far more than compostable alternatives and require washing every single time they are used. That involves time costs and water. Nonprofits aren’t selling a survive, so where applicable they can stick to the basics. Overdoing updates, events, or other taxing projects when unnecessary often drain an organization financially more than it helps. Meet with beneficiaries, constituents, board members, and the community to understand exactly what is needed and don’t force anything extra. 

Talent 

Many times people just need a push to put their potential skills and talents to work. A board member may have untapped donor connections or a volunteer could have valuable skills that they won’t come forward and request work to use them. You may have active members or volunteers that are great graphic designers, photographers, writers, or any other skills that they would be happy to use to advance your mission. The important step is asking. If you are not asking then there is a good chance you are wasting talent. Furthermore, your staff could have untold skills that you don’t know about. Make sure to use the skills and interests of your staff before finding consultants or other outside help. 

These different forms of waste will not disappear overnight. The common theme for eliminating these wasteful habits is continuous reflection and refinement of the processes and structures in your organization. Furthermore, improving in these categories is a team effort. Keeping your events staff from overestimating will help, but it is critical for all departments to remain mindful of the waste of grossly overestimating. The best way to move forward is to do so as an organization with each individual doing their part. Diligently find the waste in your organization, be committed to eliminating it, and your organization can enjoy a boost in support for your mission. 

Need help reorganizing your organization or setting a strategic direction? At NMBL Strategies we help organizations be their best self by utilizing our own experience leading nonprofits for over three decades. From leadership development to financial studies to turnaround work, we have the services and skills needed to help your organization achieve its mission.