Nonprofit programs: Out with the obsolete, in with the most effective

How is your not-for-profit’s 2025 program budget looking? Unfortunately, some organizations may have to try to do more with less next year because donations and grants have fallen off. Even if your income is relatively stable or rising, you’ll want to ensure you’re making the most of your budget. Take the time now to review your programs and determine what no longer works and what might be missing.

Ask your stakeholders

Community and membership needs change over time, and your nonprofit must change with them. Instead of relying on assumptions and anecdotes about your programs’ effectiveness, survey clients, members, donors, staffers, volunteers, and other stakeholders about which of your programs are the most — and the least — effective and why. You might also want to talk to community leaders and others with their ears to the ground, such as local journalists, about whether they know of unmet needs or have spotted trends that should inform your programming decisions in the future. It’s common to get mixed responses regarding the same program, so consider their source. Employees and volunteers who work directly with program participants are more likely to know if your current efforts are off target than a donor who attends fundraising events once a year. On the other hand, you can’t afford to alienate financial supporters. Be sure to let all stakeholders know how much you value their input, regardless of the decisions you ultimately make.

Use data and metrics

It’s also important to scour your community’s demographic data for changes relevant to your program offerings. And if you don’t already have goals and metrics for each program, set them. Specific measurements will vary according to the program, but your evaluation system should be strategic, realistic, and timely. For example, a professional association evaluating its continuing education program could compare year-over-year enrollee numbers or the change in the percentage of enrollees relative to overall membership. Apply several measures, including subjective ones, to your programs before deciding to cut or fund them. Numerical data might suggest that a program isn’t worth the money, but those who benefit from it may be passionate and vocal about its success.

Redeploy funds where necessary

After researching your programs, you may find that it’s easier to identify obsolete ones than to decide on new ones. If one of your programs is clearly ineffective and another is wildly exceeding expectations, the decision to redeploy funds to the successful program is simple. But what if you discover that none of your programs are particularly effective? New programs can be variations of old ones, but they must better serve your nonprofit’s basic mission, values, and goals. You also should avoid repeating old mistakes, such as skimping on funding. At the same time, programs can’t be successful if you overspend on them. So for every new program, create a tight budget and stick to it.

No-waste operations

If you find that reviewing your programs and culling those that are less effective is productive, consider making it a routine exercise — for example, do it once a year or once every two years. In times of financial insecurity, it’s always better to keep waste to a minimum. Contact us with questions. © 2024