From literacy to the environment, nonprofits support a diverse set of causes, but they all share core challenges, mostly financial. A recent survey found that growth/generating revenue, funding and donors, and fundraising were three of the top concerns for nonprofit leaders in 2018 and beyond. More than ever, nonprofit organizations need the right financial tools to be better stewards of their funds and fulfill their missions faster.
Modern fund accounting systems are built to help nonprofits manage their finances and address the challenges unique to their type of organization. Consider these three benefits:
– Better tracking of outcome metrics. With intense competition for donor dollars—and funders insisting on greater accountability and visibility—nonprofits must show fiscal responsibility as well as program results. Charity evaluators are diving deeper into nonprofit results—and they’re expanding their evaluations and criteria to include the tracking and reporting of non-financial performance and outcome metrics. These measure financial or non-financial criteria that reflect the efficacy of an organization, program, or initiative. Many nonprofits use their fund accounting software to measure across multiple dimensions for blended scorecards that encompass activities, capacities, financial results, and other metrics.
– Easier, more comprehensive grant reporting. A modern fund accounting system provides the reporting nonprofits need when applying for grants. It also assures the funder that the organization can report as needed should it receive the grant. “A fund accounting system makes it easier to create grant-specific reporting regardless of the funding period whether across multiple fiscal years or multiple programs,” noted Dawn Westerberg, an award-winning marketing consultant for software companies. “Fund accounting software also allows integration to other systems for outcome reporting.”
– Increased transparency across the organization. With dashboards that provide real-time visibility into data, fund accounting software gives you instant insights so you can proactively manage locations, programs, members, and funds. Program managers may look at metrics related to programs, locations, and budgets; grant managers may monitor grant renewals, new awards, and funding pipelines.
Best-in-class fund accounting software such as Sage Intacct can offer the visibility, automation, access, and adaptability you need to grow your organization and succeed. Whether you benefit from fast and easy reporting or automated processes that yield greater efficiencies, you will be a better steward of the funds you have.