The world is changing and resources are scarce. Although inflation has calmed for the time being, interest rates are still higher than ever before in the last decade. Companies, organisations, and investors are careful with any type of investment decision.
Political parties are no different. They feel the everyday pressure of budget constraints and dwindling resources. It’s crucial to strategically adjust your budget to ensure that your core functions and goals remain intact. Let’s take a look at a short guide on how to help your party make the right financial decisions at the right time—without jeopardising your long-term goals and objectives.
Keep what’s best
The first step is to identify the core activities essential to your party’s mission. These typically include the following.
Campaign operations
These are the heart of any political party. Prioritise funding for campaign strategy, voter outreach, and communication. This does not mean that you should not make decisions to streamline your campaign strategy and expenditure, such as utilising technology
Staff salaries
Retaining experienced and dedicated staff members is crucial. Many companies have made a strategic mistake by letting people go during the first waves of COVID. They were needed once the economy kicked back at full speed. Do not make the same mistake with your political party. Focus on keeping key personnel who play significant roles in strategy and operations, and make sure that your staff is well taken care of, in spite of the difficulties ahead.
Compliance and legal costs
Ensure that your party continues to meet all legal requirements, such as filing financial reports and maintaining necessary registrations. This goes hand-in-hand with prioritising your staff and essential know-how even during “murky” economic conditions, and thereby fulfilling all the legal requirements the legal framework around you demands you to complete.
Leave the rest and minimise your spending
Once you’ve identified your core activities, scrutinise areas where cuts can be made without hampering essential operations. First up: travel, accommodation and events. Opt for more economical travel arrangements and accommodations. Encourage virtual meetings where possible to save on travel costs. It’s cheaper and greener! At the same time, consider scaling down large-scale events and moving them online or to more affordable venues.
Focus on your tech and cut down on consulting
Investing in the right technology at the right time can significantly streamline operations and reduce costs in the long run. Keeping in mind the following tech solutions can help you achieve these goals.
Digital campaign tools
Use social media, email marketing, and online advertising to reach your audience more cost-effectively than traditional media. Almost all digital marketing software has an unpaid version, as well as options to start off with smaller functionalities at first. Do an audit on what you will use the tools exactly for, before purchasing the largest option – maybe you won’t actually need all the functionalities only certain ones.
Cloud-based hardware and software solutions
Adopt cloud-based project management and communication tools to improve efficiency and reduce the need for physical infrastructure. Large local servers are the past – opt for hardware that provides you the same service for a fraction of the price. But do keep in mind all your legal requirements especially when it comes to data management.
Consulting services and volunteers
Assess the necessity of external consultants and if possible, rely on in-house expertise. It’s not only a cheaper option, but it also encourages internal mobility and provides you with an overview of skills and expertise within your team. And consider involving volunteers for all kinds of tasks. Volunteers are a valuable resource for political parties. By increasing volunteer engagement, you can offset some of the costs associated with paid staff, as well as the ones that would come with external consultants and workforce management. Make sure you have a proper vetting process in place though – but do not leave this valuable pool of resources untouched.
Money talks
Volunteering can also be in the form of financial donation and grassroots fundraising can provide a stream of income that can strengthen not only your party’s financial situation but also its connection with its base. Your voters literally would become your investors, thereby further interested in your success. Encourage small, recurring donations from a large number of supporters and leverage crowdfunding platforms to finance specific projects or campaigns. Promote these efforts widely to maximise the base of your contributions. At the same time don’t be too shy to hold dedicated fundraising events. Although this has a stronger historical background in Anglo-Saxon countries, it can be a very useful tool no matter where in the world you are. One thing to keep in mind though – all these fundraising activities must comply with all local rules and legal regulations. You don’t want to find yourself and your campaign in a very awkward position by not committing to total transparency and being accused of serving unknown, shady interests because of the source of your income.
In conclusion
Navigating budget cuts is a challenging but essential task for all leaders. However, by prioritising core activities, investing in the right in your own people and the right technology, engaging volunteers, and exploring new fundraising avenues, your party can maintain its momentum even in times of financial constraint. Remember, a strategic approach not only ensures survival but can also position your party for future political growth and success.
