Nonprofits have faced unique challenges throughout the COVID-19 pandemic. Along with the challenges of supply chain and labor shortages, nonprofits have had to grapple with a decrease in significant donor contributions and increased demand for their services. As such, stretching every dollar has proved crucial in navigating the current global climate.
Throughout 2021, Expense Reduction Analysts were able to help dozens of nonprofit clients traverse these challenges, but three stood out.
A manufacturing client from the northeast United States engaged ERA to examine several categories, including freight. After conducting a full carrier-market assessment, ERA’s consultants reduced the manufacturer’s freight costs by 22%. ERA’s cost consultants are still managing and monitoring the client’s freight program, and despite a pandemic-related 70% increase in carrier rates during the past year, the client continues to beat market rates by 18-22% without degradation in service.
Another consultant in ERA’s network was able to assist a nonprofit workday service partner by examining their information technology costs, small package freight, treasury services, and health insurance costs. In primarily utilizing process and pricing improvements from incumbent service providers, the consultants saved the nonprofit $70,000 monthly.
With the pandemic squeezing their margins thinner, the CFO of a wholesale tool distributor was looking to drive down their bottom line. The client was reluctant to look at merchant-card fees because the financial institution and past third-party consultants told them no improvements could be made. However, after reviewing contract charges, ERA identified a new platform solution to upgrade the client’s process capacity and reduce costs by a projected $750K over five years.
Business funding means something more when that business is a nonprofit whose aim and mission is to make a difference in the lives of those they serve every day. Ensuring that the organization has adequate funding to further its mission and continue to grow is essential in ensuring its continued success. Learn more about how ERA may be able to help your nonprofit today.