Revenue sources for social services organizations are drying up. The sector has been hit especially hard by declining federal support and by wary donors, foundations and corporations that continue to reduce or delay their charitable contributions. So how can a social services organization continue to help its community? See more in our State of not-for-profit industry 2014: http://gt-us.co/StateofNFP2014

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• Become more efficient by streamlining your operations.
Look closely at your breakdown of functional expenses —
specifically spending on programming versus administrative
tasks and fundraising. If your percentages don’t align with
comparable not-for-profits, you need to understand the cause
and implement internal improvements to enhance efficiency.
See if the personnel structure is right for an organization
of your size, and make sure management understands and
effectively manages the organization’s finances. Investigate
opportunities to redesign processes; check to make sure
you have the right internal controls so that funds aren’t
misappropriated or billings missed, and determine whether
administrative tasks are being duplicated (and thus costing
you more money and time) or need streamlining.
• Partner with another organization. If two not-for-profits
move into one facility, they can both reduce administrative
costs (i.e., office space, support staff, shared services).
Alternatively, consider consolidating back-office operations.
Joint grant applications can also be a good way to merge
efforts. Many funding agencies welcome this approach, which
may yield greater financial outcomes. Partnering with a for-
profit can be equally beneficial. For example, if you have a for-
profit tenant running a visitors’ gift shop, your organization
benefits from royalty or rental income, while the shop benefits
from the draw of your constituents. Just remember, trust and
timing are critical for a winning collaboration.
Amy Henselin, Audit Partner, Not-for-Profit and Higher Education Practices,
Social Services Sector Leader
Revenue sources for social services organizations are drying
up. The sector has been hit especially hard by declining federal
support and by wary donors, foundations and corporations that
continue to reduce or delay their charitable contributions.
With demand for services from a growing population needing
basic support like shelter, food and health care increasing, the
result — diminished funding — is nothing short of a crisis.
So how can a social services organization continue to help
its community?
Although there is no silver bullet that can solve the financial
plight, social services not-for-profits can promote change from
within that in turn will give them an edge in the fight for funding.
Here are some strategies that can help:
• Meet higher donor expectations by delivering the best
outcomes possible. With the understanding that your
organization is being held to ever greater standards of
performance and that you are competing for donors,
it is essential that your organization instill a culture of
continuously raising the bar toward mission achievement.
This culture must translate into actions that ensure the best
results possible.
• Clearly communicate your success. Show that you are
a good steward of the funds you receive, and promote
transparency regarding how money is being spent. For
example, issue an annual report to your contributors
to explain how funds were used and what impact your
organization has had on the community.
In focus: Social services organizations
How social services organizations can boost funding