Hi Kristine, I am the ED of a small nonprofit without a dedicated finance staff person. We encountered major price increases last year due to labor shortages and supply chain issues so, in some sense, this gave me a leg up on anticipating inflation this year as I was planning for those issues to persist. But, wow, that was just the start of it. I am not sure I have tips or tricks to share but my approach has been to be in constant conversation with our suppliers and to be in constant conversation with our funders. We have also had to make some tough choices. We were fortunate that we received some extra funds here and there this year, which I have used, in part, to revise the budget with additional cushions for cost increases I have identified. Otherwise, we would have had to cut the budget or rely on “slack” and/or cash reserves. But inflation is only one part of the larger climate and other crisis planning efforts and costs. Public health, weather, carbon footprint, and safety are all impacting us tremendously. For me, storytelling/narrative as an executive director is really important and I am always trying to learn how to be more effective at contextualizing the challenges we face and what our organization does to convene and support our community.
I will say that it would seem that the conversation about changing tax codes around required distribution for donor advised funds and in private foundations is a relevant one to be having at this time.