The rising wave of Inflation. Everyone is talking about it, and we’ve all felt its surging effects since the onset of the COVID-19 pandemic. What does inflation really mean, and how will it impact your nonprofit?
Inflation is defined as “ the general increase in the prices of goods and services in an economy.” And this means there is a reduction in the purchasing power of money.” This means that the $50 dollars you once set aside for groceries will now only cover a portion of your needs.
According to The White House, the low demand for goods and services in the early pandemic followed by a sudden spike in demand recently has caused businesses to raise their prices to keep their supply congruent with demand. The White House says that supply-chain interruptions and strain on human resources has also led to the increase of prices in the pandemic and post-pandemic era.
The effects of this economic trend trickle down. Those who were formerly able to contribute to non-profits may be cutting their budgets, and consequently, this means your non-profit may be cutting back too. This creates stress in the workplace and can feel threatening to operations.
Here are three things for your nonprofit to consider to stay stable in the rising tide of inflation:
- Start considering a social enterprise model with a 501C3 arm and an LLC arm. Where donors lack in one area, sales have the opportunity to make up the difference. Here are some great resources.
- Cut non-essential items without cutting staffing. This is an opportunity for you to return to the core of your vision and mission, cutting away any peripheral focuses. Your programming is essential and the heartbeat behind your organization, So prioritize it.
- Think outside the box. If your nonprofit is experiencing change in the work culture or in employee retention, consider working with our team at ConfidantCo. You can hire a whole remote team for around the same price as a part-time employee. We’re here to be a resource for you during these challenging times. We know nonprofits, and you can trust us to champion your visions and mission to help re-capture and grow key funding opportunities.
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