Under Facilities, Optimal Organizations looks at Space (including storage), Computers and Telecommications, Office Equipment, Maintenance, Utilities, and Vehicle Use.
Space – the Productivity Frontier
* Some communities have pro-bono resources to help nonprofits with space use problems. Contacting volunteer placement agencies, architecture schools or associations, or nonprofit housing development corporations may lead to a volunteer architect, space planner or interior designer who can help re-configure your space to make it more efficient.
* Many of the best opportunities for cost-savings occur during the lease negotiation process. When leasing, negotiate with the landlord for some type of compensation for phone and electrical or other improvements you will make and pay for, but will leave behind when or if you move. Ask your potential landlord for a discount on the lease based on an energy-conservation program. Try to get a clause calling for rent rollbacks for successful reductions in energy use or waste generation.
Connect We Must – Computers and Telecommunications
* In an era when good, functional computers are increasingly essential tools of any office, the cost of acquiring and maintaining these resources is a major expense for most nonprofits. Compounding this problem, many nonprofits have little technical expertise and often believe that after they make the initial purchase they will be all set. Those new to computing are shocked to discover that there is a whole world of expenses beyond the purchase price, and they may be ill prepared to deal with them. Generally speaking, the purchase price only accounts for one-third of the final actual cost of any computer – the rest is repairs, accessories and supplies, licenses, and training. When planning for computer acquisition, budget in the additional costs so that there are no unpleasant surprises.
* Every nonprofit needs to know about CompuMentor, the leading resource for IT support to the nonprofit community. The range of services includes access to low-cost software, links for low-cost or donated hardware, information about grants and resources, free downloads, articles and technology news, technology planning help and bulletin boards. They have a free e-newsletter called Tech Soup (same as the name for the resources area of their website) which is essential reading for nonprofit managers. There are other sources for donated or low-cost software, but most are less comprehensive; still, you may need them if Tech Soup does not have the product or quantity you need. They limit organizations to 10 copies of a given product per year.
All the Essentials – Office Equipment
* The practice of leasing has some merits for nonprofits: leasing spreads out the cost of equipment and allows more frequent changes of equipment than ownership. However, the downsides are that there is no tax advantage for nonprofits, operational costs are greater than with a direct purchase, and the ultimate cost is much greater than an outright purchase, sometimes by as much as two or three times. As a rule, if a nonprofit is in a position to purchase equipment such as copiers and computers, it will be better off financially to do so. There are numerous tools on the Internet for doing lease-vs.-buy analyses.
* Copier leases are an intriguing area for negotiations. I once exchanged two crummy copiers from a company I hated for two brand-new, state-of-the-art digital copier-printers that wound up costing less per month, and we got a better company to do business with. Shopping around really pays. You may think that you are hopelessly locked into a lease, but these corporations routinely buy each other out. We didn't even have to deal with the paperwork of the buy-out.
Don't Work in a Dump! Maintenance
* Many methods for saving money on maintenance and janitorial expenses involve actions with multiple benefits. Buying cleaning products in bulk is less expensive and reduces the number of containers. Using earth-friendly cleaning products reduces the likelihood of injury to the people using them and helps to keep down your Workers Compensation costs. Making repairs sooner rather than later can often prevent a larger repair.
* If there are friendly neighboring organizations, it may be possible to jointly purchase supplies or equipment, saving money for both organizations. These arrangements require clear, written arrangements for long-term success. To write these agreements, consider everything that could go wrong, and devise a mutually beneficial agreement to protect both organizations from the identified pitfalls.
Keeping the Lights On – Utilities
Utility waste is a prime target for cost-savings programs because no one in your organization benefits from such waste. Although it takes constant effort to train staff to be conscious of energy use, both your budget and the environment will benefit. Help staff realize that not only does leaving equipment not in use turned on waste money, but it also creates a fire hazard and harms the environment. If staff do not remember to turn off equipment, timers or switches which automatically turn off equipment at closing time might be helpful.
* Call your local electric company for an energy audit. Technology changes may help reduce lighting, heating and cooling costs. Also ask about any special resources or programs to help nonprofits reduce their energy costs.
Driven to Succeed – Vehicle Operations and Maintenance
* All drivers need to know the financial impact of different driving speeds. For every mile per hour above 55 mph, gas mileage is reduced by 1 mi. per gallon. Also, idling the vehicle is expensive not only for gas costs, but for wear and tear on the vehicle (800 hours of idling is equivalent to driving 64,000 mi.). Drivers should turn off the vehicle whenever they will be stopped for more than 30 seconds.
* Develop a set of guidelines which all drivers using the vehicle must follow to continue being allowed to use it. These guidelines should specify:
• the kinds of trips for which the vehicle may be used (i.e., no personal business),
• approval requirements for long trips,
• agency rules regarding transporting clients,
• defensive driving expectations
• no use of cell phones or intoxicants while driving,
• required maintenance expected from every driver,
• accident or damage handling and notification requirements,
• driving log entry rules.
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