There are several reasons why non-profits should consider the benefits of scaling, even if they don’t have immediate plans to do so. Scaling can be a planned process, but it can also happen unexpectedly. Sometimes, the mission of the organization requires a larger structure, while other times, fluctuations in funding necessitate downsizing. In either case, it is essential for your organization to prepare in advance for scaling up or down. One effective approach is to strategically utilize contractors in your administration, which can significantly aid this process.

Scaling requires a robust organizational structure and solid governance. The use of contractors simplifies an organization’s structure considerably. Contractors can be easily assigned or removed from various parts of the organization as needed. An additional benefit is that if a contractor is no longer required, there is no need for HR to go through the process of terminating an employee. Furthermore, the politics surrounding increasing or shrinking employees’ areas of responsibility can be neatly avoided.

In the realm of information technology, scaling can pose significant challenges if a non-profit relies solely on in-house equipment. IT resources like servers and communications equipment can be costly. Scaling up would entail purchasing expensive assets, and it’s not uncommon for non-profits to unintentionally acquire suboptimal equipment or overestimate their needs and buy excessively. Scaling down would require selling off IT resources, often resulting in substantial losses. However, if a non-profit utilizes on-demand cloud-based services, there is no risk associated with hardware as it was never owned in the first place.

In the increasingly fast-paced business environment of the 21st century, non-profits already face a disadvantage in terms of administrative burdens. They have additional reporting requirements, legal obligations to maintain compliance, and unpredictable donations. To truly embrace agility, it is necessary to eliminate as much administrative drag as possible and proactively prepare for the challenges of scaling. This approach will greatly contribute to keeping an organization lean.

Contact pfreeman@condotty.com for more details on how information technology can help your organization become more responsive and adaptable.