Five Ways Your Nonprofit Can Hedge A Funding Shortfall
Non-profit organizations across the country are experiencing the problem of having to provide a greater range of services while receiving fewer financial resources. According to the 2018 non-profit survey by Marks Paneth LLC, 38 percent of all non-profit respondents experienced funding cuts in 2017 with 63 percent seeing an increase their demand for services. Moreover, non-profits may be faced with a reduction in individual and corporate donations, and the changes to federal tax regulations can impact the method whereby charitable donations are deducted.
ThriveHive interviewed Bottom Line Concepts CEO, Josh Fox and the start of his business and how expense reduction analysis works.
John, you were right: this year alone, these guys saved us over $200,000. Wait ‘til Wayne and Pam see these figures.
Okay, let's see your budget report. Where did this money come from?
We started working with this group called Bottom Line Concepts a year ago, and they reduced our mailing equipment cost by 63%. We also saved an additional $70,000 in vendor fees, overcharges, and recovered postage.
Where did you get the money to hire consultants for this?
Bottom Line operates on a contingency-based model: they only get paid if they save us money. If they don't, the service is free.
Okay, I'm listening. Tell me more.
Bottom Line focuses on companies like ours that have multiple locations with mailing equipment. We did some checking, and they work with some of the largest entities in the US.
They did a very thorough, free, no obligation analysis for us in defining our savings opportunity. What surprised me was how little control we had over these expenses. For instance, we had sites spending drastically different rates for the same equipment, despite having a national contract with our vendor.
There were tens of thousands in fees that we had been oblivious of, and many sites were paying more for the equipment than the postage being used.
How did we reduce costs by 63%?
Bottom Line helped us negotiate better pricing from our vendor. But, what stood out was the way they worked with our field sites to define their needs and show options that suit their applications. In some cases, this includes getting rid of the equipment or switching to PC postage.
What delights me the most is that they managed our spend for us, including giving us a web-based dashboard that shows us all of our mailing expenses in one place. The reports we were getting from the vendors were spotty at best.
Bottom Line eliminated over $20,000 in vendor fees and secured another $10,000 in refunds for us from areas in which we had been overpaying.
I was amazed at how much lost postage they found. Three years ago, when we closed the Acme division, no one on our side went back to collect the postage that was sitting in those meters. Bottom Line identified these accounts and helped us get the money back.
To sum it up, there are three main benefits from our partnership with Bottom Line: (1) They bring us risk-free savings, (2) they manage the spend and make it easy, and (3) we have top experts in the industry at our disposal.
Great job on this one.
I like the numbers that I'm seeing. I look forward to showing them at my board meeting next week. Good call on picking Bottom Line as a strategic partner.
If you're seeking ways to save money, maximize revenue, and increase the profitability of your business, you're in luck. Next up, we welcome CEOs from two companies, both of which have a partnership that's built on the foundation of cutting costs and boosting the business efficiency of their clients. And there's a great chance they can help your business too. In a moment, we'll be speaking with Josh Fox, CEO of Bottom Line Concepts, a financial consulting firm.
Josh, Bottom Line Concepts is a performance-based financial consulting firm. What does that mean, and how does it help businesses save money?
We are hired by various types of organizations, ranging from for-profit companies to charities, and even a municipality. These entities engage us to hopefully perform in one of two ways for them: The first being that we can go back in time, say ten to fifteen years, to identify outstanding refund opportunities that they might be unaware of.
We identify those opportunities; we get back those dollars, and we share a portion of them with the organization that hired us. Alternatively, we can review the future expenses of an organization, and if we could help them reduce their cost and we both keep a percentage of the resulting savings — but our cut is only for the first two years.
And what categories do you often find savings in for your clients?
We currently offer services in about forty different categories. The nice thing about the model is that it's completely a la carte, hence the client corporation can choose the categories for which they'd like to hire us. While some companies start out with a few of them — test us out to make sure that they're content with the results, after which they’d rehire us for additional categories. Others are happy to move forward with all of the categories. They say if you were going to do this, we'd like to look for any refunds and savings opportunities as quickly as possible. So, it's very flexible.
One of the things that cause small businesses to fail within the first five years of operations is high
expenses. With high operational expenses and low income, small businesses run into losses which drain
the business and leads to failures.
In order to strategize and reduce operational costs of running your business, it is very important to
leverage the services of cost reduction consultants to help analyze your business and develop a strategic
plan to reduce expenses while increasing income to boost the cash flow of the business.
Before, bringing in a cost saving consultant to help you reduce your operational costs and streamline your
business cash flow, you can consider the following simple tips to implement right now to cut down your
expense and save your business.
1. Track Your Expenses
If you don’t keep track of your day to day business expenses, there is no way you can be able to stay
ahead in the game. Peter Drucker, the business management guru said, “If you can’t measure it, you can’t
manage it.” To manage your business expense, you must track it regularly.
You can take advantage of online bookkeeping and accounting tools to help you keep track for your
expenses. This will help you to evaluate, measure and monitor the expenses, incomes and cash flow
position of your business.
2. Leverage Technology
The beauty of technology is that it can help reduce some of your business expenses and make it efficient
to run your business. And the good news is that there are many digital tools out there on the internet with
lots of freemium options for your business to reduce your operational costs.
For example, you can take advantage of social media networks to promote your business and keep in
touch with your business as compared to spending more in traditional advertising. You can increase
communication using mobile messaging apps with your clients which simply cost you internet data.
3. Cancel Blood Draining Expenses
You cannot run a business without expenses. But your business cannot run with excessive and blood-
draining expenses. Your business also pays for the services of individuals, contractors and other
companies in order to serve customers.
But the bottomline is to ensure that all the expenses of your business are providing real-time value. If
your business is paying for services of contractors and service personnel which are not showing in the
bottomline, you can consider evaluation with your cost saving consultant and then canceling them off.
4. Outsource Key Practices
In order to stay on top in doing what your business can does best, it is very important to outsource key
operational activities which can best be done by subject matter experts. This will enable the team to focus
on what they can do best and excel.
Outsourcing will focus the company, manage time efficient and improve bottomline ROI once the best
outsourcing company has been chosen. Areas you can consider outsourcing are advertising, marketing,
accounting, taxation and payroll.
For more information please check us out at https://www.bottomlinesavings.com/