Financial mismanagement usually stems from lack of financial policies and procedures that work in alignment with the financial tools utilized by the organization. The religious nonprofit or church has to especially work to maintain its integrity as it demonstrates stewardship to its congregants, volunteers, and the community, by how its clergy and other leaders manage the earthly resources that have been supplied to support their work.
Since stewardship is about managing what you already have been supplied, you can demonstrate to both current and future supporters how resources are managed effectively and ethically by your church or nonprofit organization.
Here are five ways to save money and manage expenses within your nonprofit organization. Each tip offers a simple strategy that may be implemented almost immediately without much if any fanfare. These changes can spark savings and lead to some long-term changes in leading and managing your religious organization’s finances.
Use Spending Limits to Control Overspending
Nonprofits like churches and social service agencies depend on generous gifts and grants, the charity and kindness of others to support their work. Don’t let overspending put those funds at risk. Utilizing prepaid business cards for purchases and expenses can help your organization manage spending limits.
Eliminate Overdraft Fees and Similar Hidden Costs
Prepaid business cards don’t just keep spending under control. Your organization can limit its additional fees and expenses such as overdraft charges and other hidden costs. Such costs eat away at your nonprofit’s already lean budget. Use a prepaid card to eliminate these additional fees entirely.
Maximize Fiscal Control with Monthly Reports
By distributing prepaid business cards to your nonprofit’s leadership and key staff, you can nix any potential risk to take from Peter in order to help Paul. Each prepaid card has spending limits based upon the amount deposited on the card’s account and each transaction is captured on a monthly statement that can be download online or received via U.S. mail.
Keep Your Costs Down While Keeping Your Nonprofit’s Funds Balanced
You can keep track of every transaction for your nonprofit by utilizing prepaid business cards to pay vendors and suppliers online at their websites or through an online bill payment service. Such cards can be refilled and used again, allowing nonprofit accounting departments to keep the nonprofit’s books balanced. Cards distributed to authorized parties are managed via online account views of each card, allowing each account to be managed in real time rather than month by month.
Show Excellence in Stewardshipby Managing Your Resources with Integrity
Donors and other contributors have supported your organization in the form of donations and grants, even contracts. Your nonprofit can take advantage of the multiple benefits available for managing financial resources with integrity. You can manage different funding sources through the use of fund accounting or similar financial strategies that help with your organizational stewardship.
Managing donations and other financial contributions is a major responsibility for nonprofit leaders. By incorporating mechanisms to manage funds both effectively and ethically, you can manage costs and strengthen your organization’s financial health.