Non-profit organizations rely on donations from individuals, business leaders and institutions that find their cause worthy and digital financial transformation will prove that worth.
Depending on the issues your non-profit seeks to address, contributions come in from around the world with different payment methods and funding sources. According to the Fourth Quarter Fundraising Report by Fundraising Effectiveness Project, donations for charitable causes in 2021 rose by 2.7% from the record donations of the previous year, with over 50% of Americans having donated to charity at some point in 2021. The growth is impressive when considering a 5.7% decrease in donors compared to the 2020 figures. These numbers give a clear insight into why non-profits’ survival is typically pegged to effective fundraising, not the number of donors.
Effective fundraising is the sum of several factors, including capable finance teams and targeted finance solutions.
Non-profits that don’t provide secure and efficient payment methods will have a diminished reputation, and, as a result, will find partnerships hard to come by. For this reason, your cash management system needs to be one of primary focuses of management to keep your nonprofit on track.
Non-profits must be given the same level of attention as for-profit enterprises before they can thrive; after all, both operate on a long-term basis. Every decision must be backed by a strategy for your non-profit’s survival.
Let’s take a look at the possible ways you can improve the finances of your non-profit.
1. Hire Competent Team and Board Members
Funding for non-profits and the efficient utilization of the funds requires experience, and sometimes, yours alone may be insufficient. Even when you lead your non-profit in the executive director capacity, you need to be accountable.
Board members must have enjoyed success at a non-profit just as big as yours. This is important because experience from a previous and similar situation in the past will be pivotal in solving future challenges.
In addition, with so many years working in the industry, they could call in favors from friends in time of need. Their objective insight will help refine plans and strategies for improving your establishment. Plus, their familiarity with the IT devices and experience in working under different and uncomfortable scenarios will come in handy whenever there is a downturn.
2. Take Advantage of Accounting Software Applications
Non-profit fund management can go from simple to complicated in no time. Employing the best accountants and bookkeepers can only go a long way for improving cash flow and other key metrics. Meanwhile, manual data entry processes are slow and prone to errors resulting in inaccurate statements. Mobile and social media donations have made manual entry obsolete. Experts believe administrations that are yet to integrate digital technologies into their financial systems and processes will be left behind.
Software applications like Sage Intacct ease the pressure on finance teams to deliver on such short notice. The time between data entry, processing and statement delivery is shortened because the first step is eliminated due to automation.
Benefits of adopting digital and financial applications include:
3. Real-Time Data Representation
Traditional bookkeeping requires data to be entered manually by your bookkeeper followed by hand-crafting the financial statements. Automating the data entry process means that new donations are immediately entered and computed in line with the current factors considered. Sage Intacct’s data visualization is regarded as the future of finance and one of the four areas of technological application that shows the most promise.
4. Better Decision Making
Sage Intacct’s budgeting software helps you become a better decision-maker and fully understand where your profit is going. Thanks to Intacct’s forecasting capabilities, you can refine your underlying business model and cut costs accordingly.
5. Saved Costs
Financial services do not come cheap. The sheer volume of data sometimes requires external help — but at a fee. In some cases, you may need to hire additional bookkeepers and accountants to keep up with the day-to-day donations and running of the organization. Sage Intacct eliminates such instances, as several of the processes involved are automated and eliminated.
6. Increased Access to Funding
Finding donors can be difficult, but hiring accountants that are familiar with the standards required at your not-for-profit may be even more challenging If your books are prepared without considering the necessary guidelines, your non-profit’s financial functions will be limited. Certain funding opportunities demand specific account statement reporting. Sage Intacct can be tweaked to suit your organization’s needs, which improves your chances of getting financing options for non-profits and increasing your digital financial transformation.
7. Remote Access
Remote access to your non-profit’s books and statements is sometimes overlooked. Cloud-based applications make it easy to access data from anywhere with internet access. This can prove useful when you intend to make a quick and unplanned pitch to a big donor. Also, the fact that you can access documents from anywhere ensures that trust is maintained within and across teams.
Request a Demo Today to Transform Your Non-Profit’s Finances
Non-profit organizations must have the combination of a competent workforce and the necessary tools to succeed — the former without the latter is simply not enough. Understanding that while most accounting software is not one-size-fits-all, Intuitive Business Concepts implements Sage Intacct to propel non-profits towards their financial goals. Call us at (443) 603-0215 to request a demo today.
About IBC: At IBC, we have a deep understanding of the critical business needs and processes specific to associations, non-profits, and unions. We ‘get’ your culture, your goals, and what drives you, too. Focused exclusively on and dedicated to delivering the most effective AMS , LMS , and Cloud Financial Software for our clients, we’re well-versed in identifying and applying the integration techniques that will save you time and money. Since 2001, our cutting-edge products, unparalleled responsiveness, and award-winning services have helped organizations like yours increase their operational and financial performance by leveraging best practices and proven solutions. For more information about IBC, please visit the website at www.ibconcepts.com or call 443.603.0215.