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The Effect of Sequestration on Nonprofits

Throughout the years I have worked with a multitude of nonprofit organizations allowing me a glimpse at the inner workings of various successful nonprofits. With sequestration cuts to budgets affecting nearly every nonprofit organization, it has become clear that being a successful nonprofit organization in today’s business world is challenging and has become more than just the services you provide to the community. Over time I have come to pinpoint two critical points in which I feel sustainable nonprofit organizations must have in place in-order to grow and thrive.

Know all aspects of your relationships:

With funding cuts, and ever-growing operating costs, it is critical to know your relationships across the board from important donors to volunteers to the constituents your programs touch. Having organized funding gives a nonprofit the key factors over their budget; predictability, measurability and consistency. With Microsoft Dynamics CRM, not only can you track donations, pledges and volunteers but you also have the capability to track the constituent information and services that are being provided. Another important aspect of keeping track of each relationship, is keeping everyone informed. Keeping your donors connected and informed with pertinent information will allow them to know exactly what they are contributing and this allows your organization some predictability; with smaller donors you can nurture their relationships in the hope of creating long lasting donor relationships with them thus creating consistency within your funding budgets.

Measure the Success of your programs:

Without knowing the total effect your programs have on the community, there will be little chance of ever seeing long lasting sustainability. The programs are the reason for your organizations’ existence; if you can’t measure all aspects of their benefits then areas will lack and become obsolete to your cause.

In one aspect this step intertwines with knowing your relationships as an organization. If there is an emphasis created on the first point you will already have critical information on each of your constituents that your programs serve in place, allowing you to focus on the results that they created for those people. Microsoft Dynamics CRM also tracks many other types of data, handling volunteer tracking, marketing campaigns and donation/pledge management. This tracking capability allows organizations to spend more time on fine tuning their programs and working to reach their organizational goals.

If an organization can get these two critical points in order the organization can start to predict its future and grow accordingly. Addressing these issues will help you mitigate against the impact of sequestration cuts so you can continue to deliver vital services to your constituents.

If you would like to discuss Microsoft Dynamics CRM more in-depth with one of our nonprofit professionals, please contact us at

Published On: June 27, 2013By Categories: Blog