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As the global fuel market becomes increasingly unstable, many nonprofits that rely on fuel for their programming may be struggling to stretch their funding to match rising prices.
Nonprofit fuel usage may not be at the top of donors’ minds, but it’s a critical expense to many organizations and their programming. Different missions that rely on fuel usage include:
These are no small feats. The Calgary Food Bank, for example, spends “an average of $10,000 in fuel each month.” Similarly, Feeding America Riverside | San Bernardino, in California says they are anticipating spending $140,000 this year in transportation costs alone. The latter organization anticipates having to redirect funding intended for other programming into their fuel budgets as costs continue to rise.
Fuel costs don’t increase in a bubble. Since they directly impact the entire supply chain, nonprofits will find the cost of many of their supplies also increases.
Likewise, times of high fuel expenses naturally lead to fewer donations and volunteers, as it becomes less affordable for some to donate their time or money. For example, programs where people volunteer to drive those in need to appointments or on shopping excursions may find fewer volunteer commitments than normal.
Understandably, with rising costs and dwindling donations, some nonprofit leaders are afraid for the future. One strategy to combat unpredictable fuel expenses are organizational fuel cards. In fact, some providers even offer special rates and discounts for nonprofit organizations.
In a nutshell, a fleet card (or fuel card) is a type of payment card that allows for easy management of expenses associated with organization-owned vehicles. They can provide the following advantages:
This is an option if you have organization-owned vehicles, but what if you don’t? Fuel cards are only one cost reduction strategy that frees up funds without impacting programming or requiring more donations and fundraising. Other cost reduction strategies targeting expenses such as payment processing, waste disposal, phone and internet services, and more can all add room to your fuel budget and other programs without taking away from your mission.
