According to the U.S. Internal Revenue Service, there are more nonprofit organizations in America than ever before, with nearly 2 million organizations with 501(c)(3) status. These organizations play an increasingly important role in the fabric of American society because they focus on social impact. From ensuring children have school supplies and pets have healthy and happy homes to helping families through natural or man-made disasters and assisting military veterans and their families, more than 10% of U.S.-based organizations are nonprofits, representing about 6% of the U.S. economy.
But being a nonprofit doesn’t mean managing financial and operational resources is any easier. Managing the balance sheets for these organizations can be even more challenging compared with for-profit enterprises, as there are strict regulations and reporting guidelines to ensure all funds are used solely for their mission. Leaders at nonprofits must carefully balance expenses with incoming donations to avoid generating a profit while still maintaining a sustainable operation to achieve their goals. A lack of tech tools and, more recently, reduced donations add to the challenging complexities, with 68% of nonprofits reporting that they will have to cut programs over the next two years.
The role of nonprofit leader just got harder.
As the new year unfolds and financial pressures mount, nonprofit organizations face the daunting yet vital task of preparing for the year ahead. They often use an already-vetted strategic plan as their guide, in addition to annual and quarterly plans or even monthly and weekly planning sprints.
With extreme weather bringing in 2025 — from record snowfalls and uncharacteristic regional snowstorms to the devastating Los Angeles wildfires, expected to be the costliest natural disaster in U.S. history, the new year is shaping up to be another year of significant community need in America.
As nonprofits weigh increased needs and limited resources, effective annual planning ensures every dollar delivers maximum impact. Here are some essential tips for crafting a thoughtful and impactful yearly plan for your organization.
#1 Build a Comprehensive Budget
As history tends to repeat itself, review last year’s budgetary plan and your organization’s financial performance to build your new annual budget. Analyze spending, savings, adjustments, and return on investment by category for programs, administration, fundraising, and outreach. Align the new year to your organizational mission and decide ways you and your team can do better to maximize your impact. Don’t forget to carve out contingency funds for unexpected costs, even if you didn’t incur such an event in the past years. It’s always good to have a cushion when an unforeseen event arises, but be sure you have a backup spending plan before the year ends so you don’t have excess funds left on the books.
#2 Create Measurable Goals
With your budget complete, it’s time for goal setting. Craft your goal statements to drive excitement and passion among your team to achieve them, and ensure they include a metric so you can measure achievement. Common goals for many nonprofits might include improving fundraising, outreach, community impact, or volunteerism. The SMART framework is highly effective in helping organizations with goal writing so that goals are specific, measurable, achievable, relevant, and time-bound for maximum success.
#3 Invest in Relationships
There’s no question that collaboration amplifies a nonprofit’s overall impact. Donors deliver funding, volunteers give their time, and community partners provide additional resources. Go the extra mile to foster these relationships with tailored communications showing appreciation and sharing impact stories. Host an event to get new ideas, or stop by a local business to thank them for their support.
When supporters feel valued and understand the impact of their contributions, they are more likely to be loyal to a cause.
#4 Plan Ahead
Big projects like a major fundraiser or a community event require thoughtful planning for flawless execution. For these initiatives and the day-to-day, earmark a leader and plan months in advance by creating an action plan — complete with a timeline, key activities, and team member assignments. A well-thought-out plan will result in less stress, reduced costs, and professional and impactful outcomes.
#5 Buy in Bulk
Many of us buy bulk items for our household essentials — whether that’s toilet paper or coffee — to stretch the household budget. The savings can be significant across the long term. Saving just 10 cents on a single item used daily can save more than $36 a year. The same holds true for nonprofit organizations, too. Whether you need supplies for your office team, snacks for your volunteers, or goods to deliver to those in need as part of your mission, supplies procured in bulk deliver a lower unit price and are an effective way to stretch a nonprofit’s financial resources.
Furthermore, bulk orders can save time with easy online shopping and shipments sent directly to your location. DollarDays offers everything from office supplies and snacks to warm clothes and household essentials, helping you fulfill any mission. Plus, we offer a dedicated in-house support team to handle all the logistics and help source any specific items you may need outside our usual inventory of 25,000+ items.
As an added benefit of planning ahead for the year, you can watch for reduced pricing offers and promotions on supplies you’ll need, helping stretch your budget even further. When you’re working on a limited budget, just give us a call, and our team will talk through creative solutions to help you meet your organization’s goals and make a substantial impact in your community.
#6 Reflect and Adjust
Set quarterly review meetings with your team to reflect on the shortfalls and achievements of each quarter, assess progress against your goals, and adjust your plans accordingly. Good quarterly review timing is typically within the first week of the month after the quarter’s end. Don’t forget to enlist feedback from your partners and volunteers, too, as they often have great ideas. Analyze, document, and summarize your quarterly results and determine the best path forward. Celebrate the wins — big and small — with your team and partners. Leaders who are flexible and willing to adapt are those best able to meet their cause’s mission.
In 2025 and always, the DollarDays team remains committed to empowering nonprofits with the goods they need to make a difference. As you plan for the year ahead, take the time to set a comprehensive budget, set measurable goals, and be planful, collaborative, and adaptable.
Together, we can continue to provide critically needed supplies to those in need and pave the way for a more hopeful future.
Onward in 2025!