Non-profit insights: The art of financial frugality

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In Alexa Mira Society (AMSI), we started to become more conscious in our spending this year. Ever since starting the planning stages in April 2019, we have been spending only around P100k. It baffles me how other organizations spend P100k on a single day.

I think it’s a matter of trying to understand that funneling in hundreds and thousands of money in a program does not necessarily mean you are creating genuine, social impact. Sometimes, frugality with spending can have its positive impacts as well–at times even greater impact.

It’s also about transparency and spending money wisely. As much as possible, we only spend for the things that are really needed on every program day, such as food and honorarium for speakers, among others.

Here, I will share some small practices that our organization does, that thankfully led to positive financial results so far.

Spreading out the program outline

For one, our programs are not a one-time, big-time thing. It’s spread out across the year. This is also one way to keep the programs sustainable and attuned to the practical needs of the community.

For this year, we focused on two main programs. I think this helped us narrow down our focus, so that the funds that get funneled are centered around these two main programs. I think it also helped that we have a small community of five families.

As much as possible, we were also frugal with the expenses on every program day. We don’t really need too much money to move forward and progress–we just need the appropriate amount of money to keep the program going. I think this is a very important lesson for many non-profits. While we are not experts on this aspect, we try our best with what we have.

Funding and grants are also not easy to come by all the time, so we really have to be wise in spending money.

Having a minimalist approach

Having only what you really need is the basic premise of minimalism. In non-profits, I think the same perspective applies.

Being a small organization, we really have to make do with what we have and unleash our creativity around that. In another blog post, I shared how creativity helped us in AMSI.

More than just lessening expenses, minimalism in non-profits means that you only spend on what is essential for the community. You don’t need too much to begin with. You just need a few, well-selected things that could help in the long-term sustainability of the organization and community.

While we are small, I hope other non-profits learn a thing or two from our experiences at AMSI.

Non-profit insights: The art of financial frugality

Standard

In Alexa Mira Society (AMSI), we started to become more conscious in our spending this year. Ever since starting the planning stages in April 2019, we have been spending only around P100k. It baffles me how other organizations spend P100k on a single day.

I think it’s a matter of trying to understand that funneling in hundreds and thousands of money in a program does not necessarily mean you are creating genuine, social impact. Sometimes, frugality with spending can have its positive impacts as well–at times even greater impact.

It’s also about transparency and spending money wisely. As much as possible, we only spend for the things that are really needed on every program day, such as food and honorarium for speakers, among others.

Here, I will share some small practices that our organization does, that thankfully led to positive financial results so far.

Spreading out the program outline

For one, our programs are not a one-time, big-time thing. It’s spread out across the year. This is also one way to keep the programs sustainable and attuned to the practical needs of the community.

For this year, we focused on two main programs. I think this helped us narrow down our focus, so that the funds that get funneled are centered around these two main programs. I think it also helped that we have a small community of five families.

As much as possible, we were also frugal with the expenses on every program day. We don’t really need too much money to move forward and progress–we just need the appropriate amount of money to keep the program going. I think this is a very important lesson for many non-profits. While we are not experts on this aspect, we try our best with what we have.

Funding and grants are also not easy to come by all the time, so we really have to be wise in spending money.

Having a minimalist approach

Having only what you really need is the basic premise of minimalism. In non-profits, I think the same perspective applies.

Being a small organization, we really have to make do with what we have and unleash our creativity around that. In another blog post, I shared how creativity helped us in AMSI.

More than just lessening expenses, minimalism in non-profits means that you only spend on what is essential for the community. You don’t need too much to begin with. You just need a few, well-selected things that could help in the long-term sustainability of the organization and community.

While we are small, I hope other non-profits learn a thing or two from our experiences at AMSI.

Non-profit insights: Creativity amidst ambiguity

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I’m very proud to be working with our nanays at Alexa Mira Society (AMSI).

For the past weeks, we’ve organized several workshops in our livelihood program where we taught them positive self-image, business planning, and personal finance, among others. Looking into their eyes when I was observing the workshops — I can see a glimmer of hope. Our nanays want change, and they want it fast.

Recently, our nanays have finalized their livelihood project with that of making handmade products from crochet. They already found a supplier for their cloth. Since then, they have been experimenting on different designs and talking about their next steps forward.

What I appreciate the most is the amount of creativity and resourcefulness they’re investing into this project and the entire program of AMSI. I’m happy to know that the lessons we’re sharing with them bore fruit along the way.

This is where creativity becomes a big asset and tool in local communities.

On creativity and community building

People underestimate creativity and intuition. As human beings, I think one of our most important assets is to — at proper times — act based on our gut feel or what we sense to be right. Sometimes, our intuition tells us more about our analytical and overthinking mind.

Imagine if we build that into the community.

I believe communities are powerful. In our own community, the nanays have a voice. They use this to power through every day. They use this to fuel their creativity and resourcefulness. We ideate with them, and they execute. They move when they’re provided the proper autonomy and direction.

Everyone is creative. They just have to be given the proper chance.

Teaching ‘how to fish’

It’s common knowledge and practice that non-profit organizations spoonfeed or simply give donations to their beneficiaries. But this is not what we aim to be in AMSI.

By teaching the nanays personal and business skills, we want them to move forward on their own once we ourselves in the team are gone later down the road.

Because in life, it’s like a grand game of autonomy and just striving to be good people.