Don’t Lose Your People: Nonprofits Can Cut Costs Without Cutting Staff
Nonprofits are no strangers to tough decisions — especially in today’s climate of shrinking grants and uncertain funding. After years of struggling to fill open positions, many organizations are now facing the painful prospect of layoffs. But before you start letting go of valuable team members and risking the continuity of your programs, consider this: There may be a better way.
Here are seven cost-saving strategies that can help your nonprofit protect its mission — and its people — without resorting to layoffs:
1. Adjust, Don’t Eliminate: Consider Temporary Wage or Benefit Changes
Rather than eliminating positions, explore options like reducing hours, adjusting salaries (especially at leadership levels), or temporarily suspending certain benefits. Transparency is key — be clear with staff that these changes are designed to prevent layoffs and share benchmarks for restoring normal operations.
2. Go Remote and Reduce Overhead
Remote work isn’t just flexible — it can be financially strategic. If your operations allow, downsizing your office footprint can reduce rent, utilities, insurance, and maintenance costs.
3. Revisit Your Lease Terms
Still need your space? That doesn’t mean you’re stuck with your current lease. Talk to your landlord about renegotiating — especially if your lease is ending soon. Many commercial spaces are still underoccupied, and landlords may be open to lower rates, rent relief, or flexible terms.
4. Consolidate Locations
If your nonprofit operates multiple locations, evaluate whether you can merge operations into one. Closing underutilized or redundant facilities can lead to substantial savings.
5. Make the Most of Your Real Estate
Own your space? You may be sitting on untapped value. Consider downsizing, subletting, or selling unused portions of your property to other organizations in need of office or program space.
6. Rethink Vendor Contracts
Review all your service agreements — from cleaning and catering to technology and security. If your needs have changed, so should your contracts. Bundle services, negotiate better rates, or ask vendors about nonprofit discounts and in-kind donations.
7. Collaborate for Cost Sharing
Team up with other organizations to share expenses for programs, services, or even office space. Strategic partnerships or mergers with mission-aligned nonprofits can lead to long-term financial stability and impact.
Tough choices don’t have to mean losing your team.
At Bland & Associates, we help nonprofit leaders find practical, sustainable solutions — whether that means cutting expenses, identifying new revenue streams, or rethinking your operating model. Let’s work together to protect your mission and your people.