by Daniel Kittell | Accounting News, Business Growth, Industry - Nonprofit, News, NonProfit
With inflation rising, it might be tempting to cut fundraising budgets and programs, but that’s the last move you should be making. Instead, it’s time to put proven fundraising strategies to work. As long as you keep in mind that in order for a fundraising campaign to be fruitful, both time and effort need to be invested, the strategies discussed below will help you raise money more effectively.
Don’t Try to Fix What Isn’t Broken
First, don’t panic. If your development staff has been successful at implementing effective activities, don’t cut your budget (or lay off staff). Continue to follow the plan. An economic slowdown is not the time to cut back on development work.
Create a Plan for Strategy and Revenue
People give money to causes that resonate with them. They give even more money to organizations that are strategic about their mission and how they execute their goals to accomplish that mission. Therefore, if you don’t have a strategic plan and a revenue plan already established, now is the time to create them. An effective strategic plan allows you to build investment, and an effective revenue plan provides a blueprint to generate funds. Think about how you can sharpen your nonprofit’s messaging and position your mission, values, and programs to boost your effectiveness for the recipients of your services.
Connect with Supporters
In times of economic uncertainty, nonprofits need to double down on efforts to stay connected with their supporters. This includes thanking donors, offering updates about your budget and pressing needs, and conveying stories about your work through testimonials, photos, videos, social media conversations, etc. Allow space for your supporters’ voices to be heard in telling their own stories in how they connect to your organization and community.
Utilize Social Media
If you want people to become more invested in your work, focus on creating an online community through social media where people can get to know your organization — your mission, goals, and plans to achieve them. Showcase upcoming events and be clear on opportunities for people to become involved. Additional modes of digital outreach include email newsletters, campaigns, and event invites.
Pay Attention to Return on Investment
In regards to raising money, nonprofit organizations generally have limited resources in the form of staff, technology, and funds. Be sure you are accurately calculating the costs of every revenue-generating endeavor to be able to gauge the actual net income that resulted from each endeavor. If the return on investment of time, effort, and money is lacking, you might find that there are less expensive and more effective ways to raise money.
Find New Donors by Analyzing Existing Donors
When your well of support is running low, look into your database of existing donors and determine commonalities among the most generous donors. Demographics, donation amounts, and length of time they’ve been regularly donating are all key aspects you should pay attention to. Once you’ve narrowed it down to your best donors, ask them (formally or informally) what drives them to give to your specific organization. The goal is to figure out what resonates with them so that you can find other donors like them.
by Daniel Kittell | Accounting News, Financial goals, News
The Federal Reserve recently raised its target federal funds rate by half-a-percentage point, which is the largest interest hike in more than 20 years. This follows an initial quarter-point increase in March. Read on to find out how rising interest rates could impact credit cards, mortgages, auto loans, and savings accounts.
A Delicate Dance to Avoid Recession
Analysts expect more hikes in 2022, taking the federal funds rate to above 2.5% or even 3% by year’s end. The challenge here is raising rates to curb inflation without raising them high enough to trigger a recession. While it will take some time to determine whether rate increases will curb inflation, the effect on your finances could be immediate. Anything from savings account interest to borrowing power to mortgage loans and refinances could be impacted.
Credit Card Interest
Individual banks and financial institutions use the federal funds rate as a starting point to set their own prime rate, or the interest rate passed onto the most creditworthy consumers. Most credit card issuers add several percentage points to the prime rate, so the average credit cardholder can expect their interest rates to be above the prime rate. According to the Federal Reserve, the average interest rate last year was 16.44 percent for cardholders who did not pay off their balance each month. With the latest half percentage point rate hike, an interest rate of 16.44 will increase to 16.94.
If you are carrying credit card debt, think about transferring a high-interest balance to a credit card with a 0% introductory rate. Many cards offer 0% APR for the first 12-21 months. This move will shield you from the rate hikes that are coming down the pipeline while also providing an interest-free path to get that debt paid off for good.
Savings Accounts
While higher interest rates typically raise costs for borrowers, it can mean higher yields for savers. Whether or not rate increases will translate to greater revenue depends on the type of account and can vary from institution to institution. While larger banks already have plenty of deposits, and therefore have little incentive to pay depositors more, smaller banks and credit unions may start raising rates on savings accounts in order to gain new customers. This puts pressure on other institutions to increase their rates, which can cause a domino effect of increasing rates across institutions.
Mortgage Loans
The Federal Reserve does not set mortgage rates, and unlike with savings accounts, the central bank’s decisions don’t impact mortgage rates as directly. However, the mortgage industry as a whole is keenly aware of the Fed, and the industry’s ability to interpret the Fed’s actions means that mortgage rates usually move in the same direction as the federal funds rate. Keep in mind, however, that mortgage rates also react to the ebb and flow of the U.S. and global economies, moving up and down daily. A point worth noting: other types of home loans, like adjustable-rate mortgages and home equity lines of credit, are more in step with the Fed’s move, so these loans will ordinarily move higher the next time an individual loan resets its rate.
Stocks and Bonds
If you are a long-term investor, your portfolio should be built with a balance of both stabilizing (bonds) and riskier (stocks) investments, which means that it should be able to withstand tumultuous periods like this. It’s best not to panic and instead focus on your long-term financial goals regardless of what happens in the short-term.
Car Loans
While car loan rates will increase as the Fed raises interest rates, car buyers need not be concerned because it has a very limited impact on monthly payments. For example, an increase of a quarter percentage point on a $25,000 loan is a $3 increase on monthly payments.
Student Loans
Borrowers who have federal or private student loans with a fixed interest rate won’t be affected by the Fed’s interest rate hikes, but borrowers with variable-rate student loans will see higher monthly payments and total interest charges over the life of the loan.
by Daniel Kittell | Accounting News, Business Growth, Construction, Industry - Construction, News
The construction industry has seen its fair share of challenges throughout the past two years as the pandemic surged, and the jury’s still out on 2022. The good news is that following technology trends can help withstand challenges and leverage ongoing opportunities for company growth.
Address Labor Shortage with Tech Tools
As with most industries in this post-pandemic climate, the construction industry is experiencing labor shortage, and there is no indication that this will change soon. One of the best investments builders and contractors can make right now is thorough training of valuable and promising workers so they’ll have the skills needed to thrive in the field. Think about equipping workers with new state-of-the-art technology tools — an investment that’s sure to reap rewards even as the industry fluctuates.
Look into Modular and Prefabricated Construction
Don’t overlook the modular construction market — it’s projected to reach $157 billion by next year. Offsite prefabrication and modular construction, where a structure is built offsite and delivered to the planned site, is trending upwards due to consistent quality and decrease in labor costs and construction time. Additionally, material waste has plagued the industry for some time, but this method addresses that inefficiency by recycling leftover materials.
Promote Teamwork with Collaboration Technology
In order to foster communication and coordination between office and field teams, think about implementing a workflow automation platform such as Fluix or Integrify. Swapping paper documents for digital construction forms and automated workflows helps to streamline the process while allowing teams to collaborate and oversee field documents.
Go Green
It’s no secret that reducing our collective carbon footprint is a trend with staying power, and the construction industry is not immune. Companies can be conscious of this by lowering operating costs, improving occupant health, and increasing occupancy rates.
Increase Jobsite Safety with Wearable Tech
Approximately 20% of worker fatalities in 2019 occurred in the construction industry. Suffice to say, safety is a trend. This includes construction technology and better safety equipment such as products with IoT connected sensors that are incorporated into wearables like safety vests and hard hats. These products help improve worker safety by alerting management to a worker’s location. Using wearable and embedded sensors can help prevent injury from falls, heavy machinery, and overexertion.
Automate Repetitive Tasks
Self-driving vehicles and drones can help accelerate the construction process by improving productivity and accuracy without risking job security. This automation process can take care of repetitive tasks while freeing workers to focus on specialized projects and individual responsibilities.
by Daniel Kittell | Accounting News, Budget, Financial goals, News, Retirement, Retirement Savings
The Federal Reserve reports that 26% of working Americans have no retirement savings. And among the working Americans who have retirement investment funds, 45% feel that their savings projections fall short of their long-term goals. If you’re a late retirement investor, it’s still possible to build a solid nest egg by the time you retire. The tips below will help you make up for lost time and get back on track.
Estimate How Much You’ll Need
A general guideline for retirement savings is to have 10 times your income saved if you plan to retire at age 67. For example, if your annual salary is $50,000 per year, you should aim to have $500,000 saved by the time you turn 67 years old. However, you should adjust this number based on your individual retirement goals. Do you plan to travel extensively in retirement, or do you want to downsize and live frugally? Increase or decrease your estimate based on these goals.
Start Saving
One of the easiest ways to start saving for retirement is through an employer-sponsored plan, such as a 401(k) or 402(b). These plans are even more valuable if your company offers matching contributions. If you don’t have access to an employer-sponsored retirement plan, think about opening a traditional or Roth IRA.
- Traditional IRAs: Contributions are tax-deductible, but withdrawals in retirement are taxed.
- Roth IRAs: Contributions are not tax-deductible, but withdrawals in retirement are tax-free.
Small business owners and self-employed individuals can also look into retirement plans in the form of SEPs and Simple IRAs.
Pay Down Debt
Debt is holding you back financially, so create a plan to pay off credit card debt, car loans, and other high-interest debt. If your mortgage is fairly new, you might also consider making extra mortgage payments in order to pay down some of your principal. However, if you’re in the later stage of a mortgage, and your payments are mainly covering the principal, it might be more beneficial to invest in retirement rather than putting that money toward your mortgage.
Pay Yourself by Automating Investments
Regular, automatic investments can help close your savings gap between now and retirement. While it might seem smart to be sure you’re covering essential expenses with each paycheck before investing, chances are—unless you’re budgeting faithfully—more of your paycheck is going to impulsive and discretionary purchases than you realize. Get ahead of the game by allocating a portion of your paycheck to be automatically and directly deposited to your retirement account.
Start Cutting Costs Now
It is never too early to get organized and prepare for retirement, no matter how close or far off your golden years are. However, if you’re on the closer-to-retirement end of this spectrum, now is the time to start cutting costs in a meaningful way. Start by minimizing expenses and stashing the extra cash away in savings. In addition to cutting debt, find ways to save on everyday bills and costs. These savings can add up and offer some breathing room once you’re no longer receiving a regular paycheck.
Use Catch-Up Contributions
American workers ages 50 and older are qualified to contribute an additional $6,500 in catch-up contributions to their 401(k) per year, increasing the maximum contribution to a 401(k) to $27,000 per year, or $2,250 per month. This is a lofty monthly goal, and might not be possible for many workers, but aim to contribute as much as you possibly can in order to get you that much closer to your retirement goal. Even if you are just beginning to save at 50 years old, by funding your 401(k) up to the maximum amount—assuming an 8.7% annual return and considering compounded interest—it’s still possible to save $1 million by the time you retire.
by Daniel Kittell | Industry - Veterinary Medicine, News
The pandemic ushered in a new era now referred to as the Great Resignation. A record number of American workers quit their jobs in 2021, many of them with no immediate plans to return to the workforce—they’re taking care of family, retiring early, living on savings, or reassessing their professional paths in light of living through a pandemic. The challenge now, for veterinary practice owners, is to halt this trend as it affects the veterinary industry. Read on to learn why workers are leaving, and what you can do to keep valuable employees on staff.
Who is Leaving the Veterinary Industry?
The labor market has seen the most quits among in-person positions as well as jobs with relatively low pay. In veterinary practices this translates to customer service staff and technicians. Low wages, overwork, and additional costs attributed to things like continuing education requirements and license renewal are some of the reasons they are leaving the industry. According to a 2007 study published in the Journal of the American Veterinary Medical Association, credentialed technicians have a considerable impact on a practice’s gross revenue. Yet the U.S. Department of Labor cites the median hourly pay for a credentialed technician is just $17.43 an hour, which may not be reflective of the monetary value they bring to the practice.
Quitting is About More than Compensation
It’s no secret that living through a worldwide pandemic for the past two years has caused people to reevaluate priorities and question life goals, so it’s no surprise that compensation is not the sole reason people are leaving their jobs. A survey conducted by Gallup last year confirmed that 57% of workers want to update their skills and 48% would contemplate a job switch for the opportunity to do so. In fact, workers across a broad age range consider upskilling a top benefit. It’s worth considering how your veterinary practice values career growth as a key factor in recruiting and keeping valuable employees.
How Your Practice Can Avoid the Great Resignation
Take action. It’s clear that employees greatly value updating their skills, so focus on employee development. Have conversations with employees about specific challenges they might be facing; engage them in conversation about why they choose to stay in the industry, and on the flip side, what variables or circumstances might have them questioning that decision (then take this feedback and cultivate a workplace that emphasizes what’s working and strives to mitigate what’s not). Offer professional growth opportunities through new projects or skillsets that align with their professional goals within the industry.
Finally, turn the questioning on yourself. What new skills, roles, and services could you bring to the table to help facilitate a practice that values bettering the skillset of employees and a more fulfilling workplace?
