Nonprofit Programs: Prioritize What Works, Eliminate What Doesn't

How is your nonprofit’s 2025 program budget shaping up? Many organizations are grappling with tighter financial constraints due to declining donations and grants. Even if your funding is holding steady or growing, making the most of your resources remains essential. Now is the time to evaluate your programs—identifying those that no longer serve your mission and uncovering gaps where new initiatives could thrive.

Engage Your Stakeholders

As community and member needs evolve, your nonprofit must adapt. Don’t rely solely on assumptions or anecdotal evidence to measure a program’s effectiveness. Instead, actively engage stakeholders—clients, members, donors, staff, volunteers, and community leaders. Surveys, interviews, and focus groups can provide valuable insights into which programs resonate and which fall short.

For additional perspectives, reach out to local journalists, municipal leaders, or other individuals with a pulse on community trends and unmet needs.

When reviewing feedback, consider its source. Employees and volunteers working closely with program participants often have firsthand knowledge of program performance, while donors may see things from a more financial or reputational angle. Acknowledge the importance of every stakeholder’s input, even if not every suggestion leads to change.

Leverage Data and Metrics

Data is key to making informed decisions. Start by reviewing your community’s demographic trends and other external data that could impact your programs. Internally, if you don’t already have clear goals and metrics for each initiative, develop them.

Measurements will vary depending on the program. For instance, a professional association’s continuing education program might evaluate year-over-year enrollment numbers or membership engagement percentages.

Combine quantitative and qualitative evaluations for a well-rounded analysis. While metrics might show a program underperforming, testimonials from passionate beneficiaries may reveal a deeper impact worth preserving.

Redeploy Resources Wisely

After your evaluation, you may identify programs that are clearly underperforming and others that are exceeding expectations. Redirecting funds from an ineffective program to a thriving one can be a straightforward choice.

But what if none of your programs seem especially impactful? In that case, consider designing new initiatives aligned with your nonprofit’s mission, values, and goals. Learn from past missteps—avoid underfunding or overextending budgets for new programs. Every new initiative should have a realistic, well-monitored financial plan.

Build a Culture of Efficiency

If evaluating and optimizing your programs proves beneficial, make it a recurring practice. Regular reviews—annually or biennially—can help your nonprofit stay responsive to changing needs and ensure that resources are allocated where they make the greatest impact.

In financially challenging times, minimizing waste is vital. A strategic, data-driven approach to your programs will position your nonprofit to not only survive but thrive.

Need help evaluating your nonprofit programs? Contact us for guidance.

How HoganTaylor Can Help

The HoganTaylor Nonprofit team of business advisors and CPAs is comprised of former CFOs, controllers, and industry experts with extensive experience providing the guidance organizations need to lean forward again in their leadership. If you have any questions about this content, or if you would like more information about HoganTaylor’s Nonprofit practice, please contact Jack Murray, CPA, Nonprofit Practice Lead.

INFORMATIONAL PURPOSE ONLY. This content is for informational purposes only. This content does not constitute professional advice and should not be relied upon by you or any third party, including to operate or promote your business, secure financing or capital in any form, obtain any regulatory or governmental approvals, or otherwise be used in connection with procuring services or other benefits from any entity. Before making any decision or taking any action, you should consult with professional advisors.