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Business basics
4 min

5 Ways Nonprofits Can Save Money And Do More Good

Cut costs with simple habits, so your nonprofit can save money and put more toward its mission.

Jannah Berkley
Published at | Updated:
Volunteers for a nonprofit packing care packages.

Key takeaways

  • Review your spending first to see which costs are essential and which you can trim.
  • Go paperless and pay bills digitally to cut printing, postage, and check costs.
  • Use volunteers, secondhand gear, rewards cards, and free nonprofit software to stretch your budget.
  • Redirect every dollar you save straight back into your programs and mission.

Start with a clear picture of your spending

Before you cut anything, get a clear view of where your money actually goes. A quick spending review shows what is essential and what you can safely trim. Start with these three steps:

  1. List your fixed monthly bills, like rent, utilities, salaries, and software
  2. Flag any expense that does not directly support your mission
  3. Decide what to trim, switch, or renegotiate

Once you have that picture, the tactics below are easy to act on.

Go paperless and pay bills digitally

Going paperless cuts costs by replacing printing, postage, and check fees with free or low-cost digital tools. It is also better for the environment. Many everyday materials can move online:

  • Invitations: switch from print to email
  • Flyers: move to social media ads
  • Holiday cards: send interactive e-greetings

Paying vendors, freelancers, and contractors by check adds up fast. Paying by check can run $4 to $20 each, about $6 on average, once you factor in checks, postage, and processing time. You can switch to paying invoices and bills online instead. Melio’s free plan includes up to five free ACH bank transfers a month, with paid plans for higher volumes.

Some donors may still expect a paper note. But most things can move online without any loss.

Buy secondhand

Pre-loved office furniture and hardware cost far less, whether you are just setting up or expanding. Look on Facebook Marketplace, Craigslist, and local secondhand shops like Goodwill. Refurbished electronics also come at a real discount. Buying used costs less, is better for the environment, and supports local small businesses.

Use credit card points

Paying bills with a rewards card can turn everyday spending into points or cash back. A card fee usually applies, often around 2.9%, so weigh the rewards against the cost. Bill pay software like Melio lets you pay by card even where cards are not usually accepted. Put those rewards toward travel, supplies, or cash back for your organization.

Common card-payable expenses include:

  • Wifi and phone service
  • Office space
  • Venue rentals and catering
  • Bookkeeping
  • Advertising

Get free help from volunteers and interns

Interns and volunteers can stretch a tight budget, but the rules matter. Under the Department of Labor’s primary beneficiary test, an unpaid intern who is really doing an employee’s job must be paid. Even unpaid help still needs your time and resources.

The best fit is motivated, self-reliant people who get something meaningful in return. Career-changers and returning parents can be great. Give young volunteers ownership of a real project, like running your social media.

Tap free and discounted software for nonprofits

Many software companies offer free or discounted plans for registered nonprofits. That can cover tools you may already pay for. Here are common places to look:

  • Office and email: tools like Google Workspace and Microsoft 365
  • Design and marketing: platforms with dedicated nonprofit plans
  • Cloud storage and video calls: options for remote teams

Check each vendor’s nonprofit page and ask about a discount before you renew.

More fundraising, less spending

These steps free up budget without disrupting your programs. That means more of every dollar goes straight to your mission. Sign up for Melio to pay bills digitally and start putting those savings back into your work.

Nonprofit cost savings FAQs

How do nonprofits save money?

Nonprofits save money by reviewing expenses, going paperless, buying secondhand, using free or discounted software, and relying on volunteers, so more of their budget supports programs.

How much money can a nonprofit keep in savings?

There is no legal cap. Many nonprofits aim to hold three to six months of operating expenses in reserves to stay stable through funding gaps.

What is the 33% rule for nonprofits?

It is the IRS public support test tied to public charity status. A nonprofit generally needs about a third of its support from the public and government sources.

What is the 80/20 rule for nonprofits?

It is a rule of thumb that about 80% of results come from 20% of efforts. Nonprofits often use it to focus fundraising and program energy where it pays off most.

*This blog post is intended for informational purposes only and is not intended as financial advice.
**Melio does not provide legal, tax or accounting advice, and you should consult with a professional advisor before making any financial decisions.