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7 Ways Your Nonprofit Can Build a Strong Financial Foundation in 2024

Blackbaud

Calculate Your Indirect Cost Rate Complete and correct cost allocation is key to the financial stability of your organization. If you aren’t including indirect costs—such as salaries or rent—into your funding requests or program planning, you are setting yourself up for stress later in the year.

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Introduction to Nonprofit Program Budgets

Grant Writing Made Easy

Indirect Expenses: These include administrative and overhead costs, all the costs of all departments outside of the program department, such as finance, human resources, and development. Fringe Benefits: This includes the cost of benefits given to personnel of the program, such as, health insurance, paid time off, pension, etc.

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The Nonprofit Administration Dilemma: How Much Should You Spend on Fundraising?

Get Fully Funded

For example, if you hire a fundraising consultant but that consultant does not succeed in helping your organization raise more money, you will end up overspending on fundraising. These are also known as indirect costs, expenses that cannot be tied directly to programs. If you’re outside the U.S., Legal services.

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Understanding Nonprofit HR: What Sets It Apart?

Get Fully Funded

Experts in the field recommend taking a total rewards approach, which emphasizes offering a holistic set of benefits that include direct compensation as well as indirect compensation (such as healthcare, paid time off, retirement plans, and more). Hire an HR consultant. Regulatory compliance. Payroll and taxes. Volunteer management.

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Understanding Nonprofit HR: What Sets It Apart?

Get Fully Funded

This approach emphasizes offering employees a holistic set of benefits that include direct compensation as well as indirect benefits such as healthcare, paid time off, retirement plans, work-life balance, and a rewarding internal culture. Do you need help refining your HR priorities and goals with the help of a consultant?

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