Tag Archive for: nonprofit

How to Properly Record Revenue for Nonprofits

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While the nature of a nonprofit means you’re focusing more on your mission than making money, bringing in revenue is still essential.

This can lead to unique accounting and recordkeeping challenges that for-profit businesses don’t have to face—especially related to revenue classification. Accurate revenue recognition, classification, and records are some of the most important aspects of nonprofit accounting.

Not only does it help with transparency in your organization, but properly recording revenue keeps you in compliance with nonprofit regulations.

Let’s take a look at common revenue streams and how to record revenue for a nonprofit.

revenue

Nonprofit Revenue Streams

To be able to properly record nonprofit revenue, you first have to understand what types of revenue streams a nonprofit might have. Many nonprofit organizations receive a variety of funding from many different sources—from membership fees to annual fundraisers. This revenue helps run your programs, pay staff, build operating reserves, and cover administrative costs.

The most common types of revenue for nonprofits include:

  • Donations and Contributions: These are monetary contributions made to your organization, often from individuals.
  • Grants and Sponsorships: Grants are typically monetary donations that come from other organizations and often have restrictions on their use, such as a government grant. Sponsorships are donations from an organization or business in exchange for promotion, such as displaying a banner at a fundraising event.
  • Program Service Fees: Many nonprofits charge fees for the services they provide, such as a ticket fee for a nonprofit theater.
  • In-Kind Contributions: In-kind contributions are non-monetary donations to your organization and might include food donations to a food bank.

There are further breakdowns within your revenue streams, most notably restricted versus unrestricted funds.

Restricted funds are donations that must be used in a specific way or for a certain purpose. Unrestricted funds are just the opposite—this money can be used for any purpose the nonprofit sees fit.

Accrual vs. Cash Basis Accounting for Nonprofits

There are two main types of accounting for nonprofits: the accrual method and the cash basis method.

  • Accrual Method: The accrual method records revenues as they are earned or pledged. Likewise, expenses are recorded when they are incurred.
  • Cash Basis: The cash method of accounting records revenue when it’s received and expenses when they are paid.

In essence, the accrual method focuses on recording revenues and expenses when you learn of them. The cash basis method, on the other hand, focuses on recording revenues and expenses when money changes hands.

Which method is best?

That depends on your organization’s size and complexity. Generally, most small nonprofits can use the cash basis method as it may be simpler. A larger nonprofit (or one with a lot of complicated transactions) may need to use the accrual method.

Recording Revenue for Nonprofits

Donations and Contributions

When recording donations for your nonprofit, technology is your best friend. There are plenty of software and tech options that make it easy to properly record nonprofit donations.

Why use technology to track donations? Because donations are generally an organization’s most common revenue transactions and may have restricted and unrestricted funds coming in equally.

You can also use a donor acknowledgment system to help track donations and make donors feel appreciated.

For example, you might set up a donation portal on your website. When someone donates, they receive an email thanking them for their contribution immediately.

As donations can come from many sources, it’s very important to separate restricted and unrestricted funds when recording to help you keep up with donation rules.

Grant and Sponsorship Revenue

While grants and sponsorships have similarities, you must keep each type of fund separate. Like restricted and unrestricted funds, keeping grant and sponsorship money can save you headaches at tax time (and when communicating with donors).

Sponsorships are often one-time donations in the form of advertisements or promotions for the sponsoring business. For example, a local restaurant sponsors your annual fundraising gala. In return, you display posters around the event thanking the restaurant.

Grants, on the other hand, usually involve a much lengthier application and approval process. You’ll need to make sure you record grant revenue based on the conditions outlined in the grant agreement.

In addition, grant-funded programs often have their own set of rules and requirements for recording. Proper record-keeping for grant revenue is important to stay in compliance with rules for grant funding.

For a deeper dive into revenue accounting for grants, check out this article by the FASB which clarifies how grants fit into the new standard.  

Program Service Fees and Earned Income

Just because a nonprofit isn’t aiming to turn a profit doesn’t mean they can’t charge for their services. Many nonprofits charge service fees or program fees to help cover the cost of running the organization.

For instance, an animal shelter charges an adoption fee to adopt a pet. These adoption fees help pay for animal care, veterinary services, and shelter employee wages.

Any program service fees and other earned income your organization brings in should be recorded separately from donations and contributions. Differentiating between program service fees and constrictions helps maintain clean records and can lower your risk of compliance issues if your nonprofit is audited.

Recognizing In-Kind Contributions

In-kind donations can pose a range of accounting challenges for nonprofits. The most important aspect of recording in-kind donations is proper valuation.

Establishing an in-kind donation valuation and recording process will help you avoid mistakes when receiving non-monetary donations.

A strong in-kind donation recording system will help you stay in compliance with accounting standards for in-kind contributions.

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Need Help Recording Revenue? Reach Out to the Charity CFO!

Understanding your nonprofit’s revenue stream and knowing how to record it is essential to staying in compliance with nonprofit rules and regulations. Properly recording your revenue is also a big factor in building trust with the public, as it shows transparency.

Feeling a little overwhelmed about your revenue streams and other accounting processes? The Charity CFO provides expert tax and accounting services for nonprofits. Our team has decades of collective experience working with nonprofits. We put our knowledge to work to help address and resolve the unique accounting challenges nonprofits face.

Let us help your nonprofit get financially organized through proper revenue recordkeeping. Contact us today for a free consultation.

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Volunteer Management: What Every Nonprofit Needs to Know

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Volunteering is an essential piece of any nonprofit. Some nonprofits can’t function without the help of their volunteers.

But how can nonprofit leaders ensure their volunteers are effective while creating a space that encourages volunteers to return?

The key lies in a strong, well-run volunteer management program. This guide will walk you through volunteer management best practices so your organization can optimize volunteer contributions, retain volunteers, and create a lasting impact for your cause.

Follow These Steps for Effective Volunteer Management

Set Clear Volunteer Rules

You don’t want to treat your volunteers as employees. They’re donating their time to you, after all. However, it’s also not a good idea to overlook the importance of setting clear expectations for volunteers.

This starts by creating volunteer positions that detail how and where people can help your organization. Think of creating something like a job listing, which details what is needed, how a volunteer is expected to help, and the time commitment to do so.

You don’t need to overthink it, simply make sure your volunteer expectations answer these questions:

  • What is the specific task?
  • Is this a one-time or recurring role?
  • How often is the volunteer needed? Daily? Weekly? Monthly?
  • What skills do volunteers need for the task?
  • Where does the volunteer need to work from? Can this task be done remotely?
  • How does this task impact the organization?

That last question, in particular, is important. Volunteers are giving their time freely, so they want to know how they’re helping your cause and making a difference.

Develop a Volunteer Recruitment and Screening

Some volunteers will seek out your organization and ask about volunteer opportunities, but the majority won’t. That’s why it’s important to have a volunteer recruitment strategy. Volunteer recruitment strategies work like your nonprofit marketing strategy: it walks volunteers through a pipeline from awareness to onboarding.

Volunteer recruitment strategies can include:

  • Detailing the skills, experience, and passion necessary for various volunteer roles.
  • Providing a wide range of ways to get involved: from one-time projects to ongoing help.
  • Recruiting in person at local events, such as a community picnic or your own fundraising events.
  • Encouraging existing volunteers to refer friends.
  • Reducing the effort it takes to sign up for volunteer opportunities.

Once you have interested volunteers, you also need to screen them. Screening volunteers might seem counterintuitive, especially if you need all the help you can get.

However, screening your volunteers helps cut down on turnover by ensuring that each volunteer is the right fit for your organization. It can also help you identify potential conflicts of interest.

If your nonprofit works with children or other at-risk individuals, the screening process is even more vital. You may want to use background checks to ensure the safety of those you serve.

Provide Proper Training

Volunteer training programs can improve the effectiveness of your volunteers while also making them feel welcomed into your organization. Establishing a training program also makes it easier to onboarding new volunteers.

A strong volunteer training program should explain your organization, including its mission and values. This sets the tone for volunteers on what is expected while helping your organization.

Volunteers should also be trained on the specifics of their role. If you run an animal shelter, for example, you want your volunteer kennel cleaners to know the step-by-step process to safely clean and sanitize kennels and cages.

The most important part of your volunteer training? Clear and effective communication. Volunteer training should give volunteers the tools and resources they need to effectively complete their tasks.

Provide Recognition and Appreciation

Your volunteers are donating their time to your organization. It’s essential to show your appreciation for their time and efforts. Volunteers who feel needed, recognized, and appreciated tend to return.

A few ways to recognize and show your appreciation to volunteers include:

  • Sending personalized thank-yous highlighting how the volunteer’s work impacted the organization.
  • With their permission, shout out individual volunteers in newsletters, on your website, and across your social media platforms.
  • Give out free swag like t-shirts, hats, pens, and more.
  • Throw a volunteer appreciation event, such as a holiday party or family picnic.

Encourage Volunteer Feedback

Getting feedback from past and present volunteers can help you see the effectiveness of your volunteer program. An easy way to do this is through volunteer response surveys.

Send your survey to volunteers and encourage them to fill it out. You may need to offer a small incentive, such as a gift card for a local coffee shop, to increase participation.

In your survey, be sure to ask volunteers what they feel is–and isn’t–working within the volunteer program. Additionally, try to make completing the survey simple by using mostly multiple-choice questions. Give volunteers a chance to speak their minds by ending the survey with an open-ended format question.

Volunteer feedback isn’t just important for improving your volunteer program. It can also provide valuable insights into your organization as a whole, especially from an outsider’s perspective.

Focus on Volunteer Retention

A volunteer who keeps coming back to your organization requires fewer resources for training, onboarding, and recruitment. You want to build a group of volunteers who keep coming back.

The key to volunteer retention is making volunteers feel appreciated, letting them see their impacts, and creating a fun volunteer experience. Some ways to help retain volunteers include:

  • Providing meaningful work
  • Offering opportunities for advancement and growth in the organization
  • Making sure volunteers feel valued through incentive programs

Improve Volunteer Management for a Stronger Organization

As you set your nonprofit goals, don’t forget the importance of volunteers. You can reach your volunteer recruitment, retention, and project goals by creating and following an effective volunteer management program.

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Provide a ‘WOW’ Experience in your Nonprofit Marketing

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About David

Welcome everyone to A Modern Nonprofit Podcast. Today, we explored the importance of websites, nonprofit marketing, and how to bridge the gaps between departments to achieve digital success.

When we think marketing, we think of getting the word out and expressing the  mission behind the help non-profit organizations (NPOs) provide. In 2023, this goes much deeper than we could imagine. There are many tools and resources that can be utilized to enhance NPOs, especially online. 

We invited David Pisarek of Wow Digital, Inc. to give us a behind the scenes look at SEOs, attracting and retaining visits to websites, digital marketing  and much more! 

David started Wow Digital Inc. with the goal of providing effective websites, branding and design for Canadian based charity organizations. With over 20 years in the nonprofit sector, passionately working to revolutionize it one website at a time. An expert in design and programming, he’s also an educator at the college level. With a track record of 240+ complete projects since 2016, David and his team are the go-to experts.

We welcome David to the show! 

Continuous Improvement 

We engaged in an in-depth conversation with David, where we unraveled a series of questions regarding nonprofit website redesign and the importance of web analytics.  

  • When should nonprofits consider a full redesign on their website?
  • What does that process look like?
  • What should it include?
  • How often should a NPO consider a redesign? 

Of course, there is much to learn about in each of the posed questions. David stresses that websites are not something that are sat and forgotten about. Or ‘one and done’ as he calls them. 

They need constant love and care. A part of that care comes from measuring analytics. A free tool that can help organizations achieve this is Google Analytics. It’s important to note that Google Analytics 3 is the system that has been used for years. And as of July 20th, 2023, this was updated to GA4. So, if analytics are the next move for business, make sure GA4 is the system used. 

GA isn’t just for tech-nerds; it’s a great tool that can help businesses identify what consumers, donors, or website searchers are looking for and take them back to the website over and over again. Keep an eye on:

  • What keywords are being used?
  • Which call to actions are listed?
  • Where are consumers landing on the business website?
  • Are they navigating 3 to 4 pages in order to find what they are looking for?

All of these are key questions that businesses should be asking when it comes to analyzing their web traffic. 

David makes a great point regarding website analytics. The word ‘conversion’ is a data point that can be measured. So for example,  on a for-profit’s page this may mean that a conversion leads to an eventual sale. This has a different definition for NPOs. A conversion data point may indicate converted volunteers, donations, or simply subscribing to an email or newsletter. 

Not only is it important to understand what data points to pay attention to, but also how they differ from business to business. 

Revamping a Website 

Before Tosha and David take a deeper dive into the topic of SEOs, David compliments Tosha’s question about a website revamp. 

He and his team did an audit that lead to 5 indicators for revamping a website: 

  1. Is the page layout unique or common in comparison to other websites?
  2. How old does the site look?
    1. Building more off of this point, how does the website look on a smartphone? Is it compatible? Google will rank the site lower if it isn’t mobile friendly – certainly something to consider. 
  3. Is your mission and purpose clear as day on the website?
  4. Is the website accessible? 
    1. World Wide Web Consortium (W3C) is a website that creates accessibility guidelines. For example, when defining accessibility is the website accessible for an individual that may be physically impaired? The tiny detail that goes into naming a photo on a website could play a huge role in this consideration. 
  5. Finally, how identifiable is the business contact information?

Number 5 may seem like a small task in the big scheme of things, but this is actually a great segway into the SEO conversation. Even if your organization is completely remote, putting a PO Box on your website can do wonders. Why? When people search for things near them (like volunteer opportunities), Google uses their location to find the best match. 

In most cases, each device holds an IP address that gives Google some idea of your location. Because of this, when searching for ‘volunteering opportunities’ while the IP is in, let’s say the St. Louis, MO region, then Google can direct individuals to a website associated with that area. 

Measuring Frequency 

Piecing the conversation together, NPOs are a different breed than for profit businesses. They still require constant measurement and effort, but the data points that are studied are much different. How this plays into the website traffic and SEO conversation, is what makes all the impact. 

For example, revenue may increase in the winter months because of a historically associated ‘giving season’. Therefore, measuring data on a quarterly basis may be more effective when it comes to the NPO’s website as opposed to week over week or month over month analytics. 

NPOs also work on a conservative budget basis, meaning that they can stretch a dollar. 

With this, they may not be able to pay an individual, group, or department to only analyze data points for their website development. Looking at the numbers on a quarterly basis can help whomever lands this task a better window for analysis and time management. 

Want to connect with David and his team?  Email him at [email protected] or check out their website, wowdigital.com. His team also works with NPOs and website development by providing templates and website management through a website called, Mighty NPO. By using the coupon code charitycfo, this may qualify your business for a lifetime discount up to 70%. 

To hear the full story, listen to our podcast here.

You can also find Tosha and The Charity CFO team on Youtube or our website, thecharitycfo.com!

Using AI to Maximize Impact for Nonprofits

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Brace yourselves, Nonprofit Leaders! Artificial intelligence is advancing incredibly quickly. We promise it’s not as scary as it sounds, and it’s already changing the game in every industry, including nonprofits.

Fortunately, savvy nonprofit leaders will be able to harness the power of AI to maximize their impact on the causes that matter to them.

Understanding AI in Nonprofits

First things first, let’s demystify Artificial intelligence (AI for short). Imagine a computer program that “thinks” and “learns” in ways similar to a human brain. This allows AI to:

  • Help solve complex problems
  • Tackle complicated projects
  • Adapt as needed based on conditions and inputs 

It’s been in development for decades, but recent advances have made the technology more impressive and accessible to the average person. 

AI is everywhere, making our lives easier, from writing formal emails to debugging computer code to helping select recipes for a user’s meal plan. More importantly, it’s a superpower for nonprofits. It helps streamline processes and automates tasks that can make employees more efficient. 

While some nonprofit leaders may be skeptical about AI or wary about whether it’s truly accessible to their organization, there’s no need for concern. AI is increasingly integrated into modern tech, and even standalone models or programs are affordable to just about any organization.

Key Benefits of AI for Nonprofits

The benefits of AI can be as varied as your imagination. Let’s take a closer look at a few of the most important.

Enhanced Data Analysis and Decision Making

Tired of number crunching? AI can do the heavy lifting making the task far easier and faster.

The programs can automatically flag valuable insights from large data sets that may have otherwise gone unnoticed. This can be a game-changer for nonprofits making data-driven decisions, improving program effectiveness, and making the most of your limited resources.

Personalization and Donor Engagement

Artificial intelligence can also provide a better user experience for critical funders and other partners who work with your nonprofit. 

AI is one of the easiest ways to create personalized donor experiences and targeted communication, vital pieces of cultivating and retaining donors. 

Ever wanted a personal assistant, AI chatbots might be your solution. They can assist with communication, engagement, and support for donors freeing up your team’s valuable time.

In many cases, these bots can take care of most of the needs of those reaching out, reducing the time that human staff needs to spend on it.

Fundraising and Resource Optimization

The power of AI can also be used to optimize your fundraising campaigns. Through predictive modeling and other tech, you can let AI do the detective work in your fundraising campaigns to find your potential donors.

AI-powered automation can also be used to streamline administrative tasks and other menial but necessary functions. Reduce costs, optimize resources, and make your team happier.

Impact Measurement and Evaluation

There’s no need to wait for the end of the month or the quarter for your financial team to total up the numbers. 

AI can provide real-time assessment of your organization and evaluate the performance of financial or program goals. It can even support important program development by constantly analyzing and providing guidance on better-adapting operations to your needs. It’s like having a constant advisor at your side.

Overcoming Challenges in Adopting AI

Like any new technology or system, there are also some potential hiccups for organizations new to using AI. Make sure to keep these possible concerns in mind.

Budgetary Constraints and Resource Allocation

Money matters. Every nonprofit works hard to make the most of limited funding, and there’s no denying AI services can add another cost. 

It’s vital to explore the most cost-effective solutions for your needs. In some cases, other options include grant opportunities or collaborating with tech-focused organizations, like TechSoup.

Data Privacy and Ethical Considerations

In a world full of sensitive personal data, it’s natural for donors and others to be concerned about their data privacy. Leaders will need to take steps to address these concerns while still leveraging AI to its fullest extent. 

Organizations also need to ensure AI is being used ethically and transparently, particularly when it comes to critical decision-making processes.

Training and Skill Development

Using artificial intelligence can represent a significant shift for many nonprofits, one that may unsettle longtime employees used to more traditional operations. 

Success requires creating an AI-friendly organizational culture, both from leaders at the top and average employees and partners. This can require investing in staff training or other upskilling programs to help them thrive in an AI-enhanced work environment, which is like making an investment in your organization’s future.

Practical Tips for Implementing AI in Nonprofits

Convinced about Artificial intelligence but not sure where to start? Here are some practical tips. 

  • Start with pilot projects that allow AI to be introduced gradually to various tasks. This will allow you and your staff to test it and gauge its effectiveness. 
  • It’s also vital to partner with AI experts and other tech-savvy specialists and consultants. Their experience can help unlock otherwise missed opportunities and smooth overall implementation by integrating the services into your existing systems and processes. 
  • Finally, every organization should set and monitor clear metrics for AI, including defining what success looks like. Leaders should meet regularly to discuss the high and low points of the process to make adjustments for the future.

Maximize Your Organization’s Impact with AI

Artificial intelligence has the potential to completely transform the behind-the-scenes work of nonprofits, allowing employees to spend more time on things that matter and save time and money on things that don’t. And there’s no denying that artificial intelligence can amplify the nonprofit world’s ability to create positive change for people and causes of all kinds. 

Join The Charity CFO newsletter for the latest trends in fundraising, nonprofit branding, and optimizing your team!

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Understanding the Job of a Nonprofit Operations Manager

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There are more than 1.54 million nonprofits globally. To ensure that a nonprofit runs efficiently, several people work behind the scenes to make things much easier, and one of those people is the operations manager.

The operations manager might be the secret weapon of the most successful nonprofits we know. By taking charge of getting things done, an operations manager helps executive directors focus their energy on the strategic big-picture that will move their mission forward.

If you’re looking to enter the world of nonprofit organizations with a background in operations management, you might be wondering how your skills can help you. Or, if you’re a nonprofit founder or an executive director, you might be wondering how an operations manager can help make your organization ruthlessly efficient and highly effective.

Read on now to find out what the job description of a nonprofit operations manager might look like.

What does an operations manager do?

A nonprofit operations manager, or director of operations for a nonprofit, is responsible for the day-to-day operations of the organization. 

They oversee the administrative staff and make sure that the office runs smoothly. They also develop and implement operational procedures and systems and manage budgets and financial reports. In short, they ensure that the nonprofit runs like a well-oiled machine!

Now, if that sounds like they do a bit of everything, it’s because that’s true!

An operations manager, by definition, is a manager. They don’t necessarily need to be an expert at any one thing. Still, they need to be able to be proficient enough at many things to manage a highly productive team to get results for their organization.

Here’s how Krysta Grangeno described her day-to-day tasks in operations for a nonprofit organization:

Who reports to the operations manager?
And who do they report to?

It depends on the organization, but generally, any department is responsible for the day-to-day operations of the entity. That may include

  • Finance Department
  • Fundraising Department
  • Program directors
  • Human Resources
  • Information Technology
  • And more!

You can see that, depending on the size and structure of your organization, the ops manager will have to oversee a large number of departments.

In turn, your operations manager will either report to the Director of Operations, the Chief Operating Officer (COO), or directly to the CEO or Executive Director. They may also have some direct interaction with the Board of Directors, although the board isn’t technically their supervisor.

operations-manager-nonprofit-roles

What are the job responsibilities of a nonprofit operations manager?

As mentioned above, their primary role is to supervise and organize the efforts of the departments under their responsibility. Here’s a breakdown of what duties a nonprofit operations manager will be expected to handle:

Ensure the Office Runs Smoothly

The administrative staff is responsible for keeping the office organized and running smoothly on a day-to-day basis. The operations manager will make sure that they have everything they need to do their job effectively and that they are meeting all deadlines.

An operations manager must be exceptionally well organized, as they’ll be responsible for creating systems and processes that ensure every department is meeting its expectations. Often, they’ll also need to be aware of all legal or reporting requirements that the organization may have in executing their programs.

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Implement Budgets and Oversee Financial Strategy

The operations manager will be responsible for spearheading the budgeting process for the organization and ensuring that the accounting department delivers timely and accurate financial statements for the board of directors or other stakeholders. You’ll also need to be intimately familiar with these statements as well and review them proactively to identify potential issues before they become problems.

As the operations manager, part of your role is to ensure that the financial department runs effectively. This includes ensuring that checks and balances are in place and that employees in the financial department are adequately trained to do their jobs.

The operations manager must also be acutely in-tune with the organization’s budget. Because their role is so wide-reaching, they need to be aware of how shortfalls in one area (like fundraising) may impact the ability to execute in others (like executing programs or meeting payroll).

That doesn’t mean that the operations manager needs to be an accountant. Generally, they’ll oversee the accounting team or work as a liaison with an outsourced accounting firm. But ultimately, they are responsible for ensuring that the accounting work is done correctly and on time.

Supervise Human Resources 

Ideally, the operations manager’s role in human resources is limited to supervision, but that’s not always the case. In some smaller nonprofits, HR may get put completely onto the ops manager’s plate, but we’d recommend against it.

Human resources is a specialized field that requires experience and specific knowledge. You need to comply with employment law, collect the correct information, withhold taxes appropriately, and onboard and train new employees.

A knowledgeable HR professional should establish the policies and procedures for the human resources department, but many nonprofits can’t afford a full-time HR coordinator. That’s why many nonprofits choose to outsource their HR to external firms as well.

Even if you’re working with an external firm, the operations manager will probably need to be involved in many day-to-day items related to HR—like searching for employees to hire, interviewing, training, counseling, and terminating employees.

nonprofit-operations-manager-technology

Manage Technology Integration 

Technology is a massive part of the work that nonprofits do. Almost every person in your organization depends on technology. And the networks and systems that keep those people aligned take organization, security, and maintenance.

Depending on your mission, you may even be dealing with highly sensitive personal information that you have a legal responsibility to protect, even in digital form. As the operations manager, you’ve got to make sure the appropriate technology systems and controls are implemented throughout the business.

Not utilizing the proper systems could mean the loss of crucial data needed in the future. Or it could mean a crumbling IT infrastructure that can’t support the business model being implemented.

Nonprofits often don’t need, or can’t afford, an internal IT department. And relying on someone’s husband or nephew to fix problems isn’t an acceptable solution. Instead, many organizations outsource their IT department to a service provider. In this case, it’s the operations manager’s job to liaison with the IT provider to ensure the office gets the support it requires.

Ensure Compliance and Organization

Records need to be kept in order within any business. There are several reasons for this, but compliance is an important one for many nonprofits.

Your organization needs to comply with accounting regulations, legal restrictions, employment rules, and other industry-specific regulations. And the operations manager is ultimately responsible for ensuring that the company is prepared to prove its compliance when audited.

Not only does record organization help when something needs to be located, but it also speeds up business efficiency. Instead of wasting time hunting for something, it will be easy to access the record database. All you’ve got to do is type in some information and locate the data needed.

How to evaluate performance and further development

Whether you’re building the leadership team to include an operations roles, or you’re currently in an operational leadership role — it’s important to regularly evaluate performance as well as work on developing to further improve your work.

If you’re evaluating your ideal candidate, after they’ve been in the position for a certain period (a year, for example), it’s important to compare their achievements to the job description. For self-evaluations, read resources (like this one) to find usable knowledge to help improve your performance. 

Key areas to concentrate your efforts include:

  • Purposeful communication: In operations, too much communication is nearly as problematic as not enough. What you say, how you say it, must be as useful as possible. That’s where developing purposeful communication tactics come in handy.
  • Organizational processes: As someone who ensures compliance and handles intricate areas of a nonprofit, the ability to develop processes takes precedence over nearly every other aspect of your role.
  • Continuing certifications: There are a number of nonprofit certificate programs available for leadership teams. Those instructing the programs often have robust experience in the sector. Taking these programs helps you find the additional knowledge to improve your performance.

A Note on Outsourcing Professional Services:

We’ve mentioned outsourcing a few times here, related explicitly to bookkeeping/accounting, human resources, and information technology. That’s because this is an emerging trend we see gaining steam in the industry.

Traditionally, many nonprofits had a scrappy, do-it-all mentality when it came to these areas. So, an operations manager or financial director frequently ended up having responsibility for everything— from making bank deposits and firing employees to troubleshooting network issues.

But this approach causes more problems than it solves. Having trained professionals handling complex tasks that are outside their area of expertise is hugely inefficient. And it’s just asking for mistakes.

Yet most organizations can’t afford a full-time accountant, HR coordinator, and IT professional. And that’s where the operations manager comes in.

When organizations outsource these 3 functions and have the operations manager work directly with each team, they can get the full professional support of each team without paying a full-time salary. Often, these teams are more talented and efficient than an internal team member would be.

We believe this is the operational business model of the future for successful mid-sized nonprofits in the $1M to $15M/year range. If you’d like to talk to us about outsourcing your bookkeeping and accounting to The Charity CFO, send us a message to set up a free consultation.

What Qualities Make a Good Operations Manager?

Let’s turn to Krysta again, to offer a first-hand perspective on what skills an operations manager needs:

What A Nonprofit Operations Manager Does: A Recap

A nonprofit operations manager has many responsibilities, but their primary role is to coordinate all the various departments to ensure that business runs smoothly.

The operations manager will oversee the finance department, human resources, information technology, programs, fundraising, and more. And they must grasp how each department impacts the other to ensure that the entire organization runs harmoniously.

By doing their job well and assuming responsibility, they free up each department to focus on what they do best, rather than overlapping tasks or getting tied up in work that’s unrelated to their department. They also help free up the directors to focus on strategy rather than the day-to-day minutiae of each department.

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How to work with your donor’s financial advisors to create the greatest impact.

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On this week’s episode of A Modern Nonprofit Podcast, CEO Tosha Anderson invites David Foster,  CFP®, CAP® as her guest. David Foster is a financial advisor at Gateway Wealth Management of our client.

David speaks about, “How to work with your donor’s financial advisors to create the greatest impact”. He gives advice to listeners on should development officers ask for specific dollar amounts why or why not? He also hits on whether or not development officers should be afraid to ask about planned giving and how to be direct when asking about planned giving? Should you ignore your donor’s team of professionals, CPAs, Attorneys, Financial Advisors, when asking for large gifts? Or should you offer to reach out and get to know your donor’s professional advisors? You may think that getting a donor’s professional advisors involved will increase the time you spend and reduce the size of the gift you ultimately “bring in.” What are the three reasons the opposite is true?

These are just a few questions David answers, this episode is an interesting conversation with to experts in their fields.

This episode is a must listen.

Follow David’s career and reach out for any help with all nonprofit donor questions and more.

Here is how to get in contact with David Foster.

Website: gatewaywealthstl.com

Click on Talk with David

Email: [email protected]

Phone: 314-349-2711

The most effective ways to expand visibility and maintain funding in your business.

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On this week’s episode of A Modern Nonprofit Podcast, CEO Tosha Anderson invites Eric Ressler as her guest. Eric Ressler is the Founder and Creative Director at Cosmic, A Social Impact Creative Agency. Eric Ressler expresses his opinions and expertise about, “The most effective ways to expand visibility and maintain funding in your business.” Why do so many social impact organizations struggle to find, grow, and maintain funding? Eric breaks this question down and gives listeners tips to implement in your own processes. What does the future of social impact fundraising look like? Eric goes into the importance of your digital footprint and doing it in an authentic way. We cover why does social impact organizations invest in their digital strategy and platforms? We also hit on why should social impact organizations concern themselves with their brand when it seems like there are more important things to focus on? Finally why is the overhead percentage the wrong metric for assessing a social impact organization’s effectiveness? This episode is a wonderful conversation and a must listen.

Reach out to Eric Ressler @ [email protected]

Website: designbycosmic.com

Nonprofit Fundraising Strategies: Tips for Running an Effective Campaign

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Are you looking to raise more money for your nonprofit and bolster your fundraising strategies?

When you run a nonprofit, knowing how to get money from your supporters should consist of one of your chief goals. Many nonprofits become born out of care for certain needs in the world, yet they can’t exist without a solid marketing plan. You need effective fundraising strategies to get the money you need to continue your initiatives and keep your talent.

So, how do you go about getting the proper funding? We’ll go into nonprofit fundraising strategies below. Keep reading to bring in more money for your cause today!

1. Use a Professional Mass Email Service

You may have a great mission, but you won’t attract many donations if your emails don’t look professional. Even if you run a small nonprofit, professionalism inspires confidence in you and your organization.

In turn, this prompts less hesitation about giving. When people believe you operate in a professional manner, they may trust you with more of their funds.

But how do you ensure your emails maintain a professional appearance? Get a mass email service. These platforms allow you to store your contacts’ information and even provide templates you can edit with your own text. This gives your emails a professional look.

2. Use More Than One Platform

If you just advertise your cause via email, you likely aren’t getting the most money you can. Instead, you should seek to get funds from other platforms as well.

You should start out by having a donation page on your website. Make sure people can navigate to this page from any other page on your site. Your donors should have the ability to find it without much effort.

You can also put donation buttons on each of your blog posts or news updates. This encourages people to give to causes after reading about them.

Some people even advertise their causes on social media. To do this, create posts targeted to raising money for specific causes and include links to donate.

3. Create Nonprofit Fundraising Strategies

You shouldn’t create random fundraising opportunities. Instead, fundraising works best when it gets planned out in detail. As such, you should dedicate much of your marketing endeavors toward creating nonprofit fundraising strategies that work for you.

How do you customize your own strategies? A lot of it involves doing research on how well different types of strategies work with your donor base. Any time you try something new, make sure you look at how well people received your new endeavor by viewing your analytics. The best working attempts will result in more donations, shares, or donor interactions.

Then, once you have an idea of what works well, incorporate it into your fundraising strategy.

4. Plan Out Fundraising Campaigns

Fundraising campaigns should comprise a lot of your fundraising strategy.

But what is a fundraising campaign? Think of them as a multi-component attempt to raise money for a specific cause. Fundraising campaigns harness the power of sending email messages to highlight your mission and the initiatives you want your donor base to give to.

For these, you shouldn’t send out one message. Rather, plan out several that build upon each other and encourage your donors to give.

To get the best results, you should start out with a soft launch of your campaign. These launches target only your committed donors. Ask them for feedback on the campaign and pay attention to the issues they raise. Then, you should implement these changes to your campaign before you send it to the rest of your email list.

You should also create thank you notes to send out to people who donate!

5. Know About Prime Fundraising Seasons

Did you know you can maximize your profits by launching campaigns at certain times of the year?

In particular, people like to give before the end of the year because they can claim their donations on their tax forms. Giving Tuesday kicks off this season. It lands on the Tuesday after Thanksgiving, when people follow Black Friday and Cyber Monday with an opportunity to give. You should always start your end-of-the-year campaign on Giving Tuesday.

Then, send messages throughout the month of December. Finish the campaign with a last chance message toward the end of the month, and then follow up with a thank you statement in January.

You can also run fundraising campaigns around holidays.

6. Use Specific Stories

People connect to stories. A well-told story pulls on the heartstrings of your audience and convinces them that they should spend their money giving to your cause.

The more specific the story, the better. Telling the story of one specific beneficiary of your services shows people the impact a donation to your organization can have. These stories also encourage people to put themselves in someone else’s shoes, encouraging empathy and furthering their dedication to your cause.

7. Get Reviewed by a Nonprofit Financial Organization

People want to make sure their money goes to the cause to which they intended to give. Most nonprofits manage their money well, but some don’t, and so it becomes important to have documentation to show how you spend your donations.

To do this, get reviewed by a nonprofit financial organization. These companies focus on reviewing the finances of nonprofit organizations and making this information public for any potential donors. Then, when potential donors contact you asking how you spend your donations, you can send them to the organization’s website so they can view the information for themselves.

This gives your donors confidence in your ability to handle money well and not use it for purposes other than your cause.

Need Nonprofit Financial Services?

Nonprofit fundraising strategies become the crux of many nonprofit organizations. They enable them to raise money for the different initiatives they run and help them keep their lights on.

But you shouldn’t just fundraise and not manage your money. If you need financial assistance for your nonprofit, we offer a full team of accountants who can help you manage the funds you receive. Request a meeting today!

Risk Management in the Nonprofit World with Ted Bilich

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A Guide to Nonprofit Risk Management and Cybersecurity

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We are living in an age that is characterized by risk. Every decision a company makes needs to take various risk factors into account. If you fail to properly consider risks through a risk assessment and risk management, it could be disastrous for your company.

One area in which non-profit organizations frequently miscalculate risk is cybersecurity. This article explains how you can secure your organization against various cyber threats.

What Is Risk Management?

Essentially, risk management involves trying to foresee what could go wrong for your organization. You then take measures to mitigate the risk. Of course, organizations don’t take measures against every conceivable risk. Instead, they evaluate each risk based on perceived likelihood and expected damage.

For example, consider an event such as a meteor hitting your office. The damage from this kind of event would be catastrophic, but it’s very unlikely that it would ever happen. Therefore, a risk management analysis would conclude that there’s no need to take measures against a meteor strike.

On the other hand, events like a fire happening on the premises are much more likely, and the damage from such an event could be just as severe. Therefore any reasonable risk management strategy would take fire into account.

Risk management looks at both intentional harms caused by malicious actors and accidental harms.

Cyber Risk Management

Some of the biggest risks you’ll face in nonprofit security are cyber threats. These kinds of threats involve harms caused by computers and computer network systems. Most organizations have robust and sensible risk management approaches when it comes to “real life” threats such as fires and earthquakes, but their approach to cyber risks is often lacking.

This is because digital technology has progressed so quickly in the last few decades. Risk management approaches have not had time to catch up. It doesn’t help that many people in management positions are not very knowledgeable about computers and the internet.

Unfortunately, this means that many nonprofit organizations take a reactive rather than a proactive approach to cybersecurity. You can’t afford to take this kind of approach to cybersecurity as threats like data breaches could have a devastating impact on your organization.

Data Security

As a nonprofit organization, one of the biggest cybersecurity threats you face is a breach of your data. Quite often, if data is stolen from your organization, it will mean you’re in violation of data privacy regulation. This could result in fines or other legal action against your organization. It could also have a negative impact on your reputation.

Your risk management strategy should involve reviewing your cybersecurity. This should be on the hardware and software level. For example, all employee workstations should have antivirus and firewall software installed. If you don’t have dedicated IT support staff at your company, you might consider working with a managed IT company.

Two-Factor Authentication

One of the best and most efficient ways to protect yourself against a data breach is to use some form of 2-factor authentication. Basically, this involves using a second device to verify your identity.

The most common form of 2-factor authentication is using a cell phone to verify who someone is who is attempting to log in. This is an effective security measure because it means a hacker who has the password of an employee still won’t be able to log in.

Consider setting up such a system to protect yourself against a data breach.

Consider Social Engineering

One mistake that organizations often make is that they focus all of their risk management on software protection. This is certainly important, but many cyber-attacks involve using social engineering to breach a system.

Social engineering involves using trickery and manipulation in order to breach a system. A firewall or antivirus software won’t be able to protect you against this kind of attack.

An example of a social engineering attack might be an attacker calling up someone at your company. They might then and convince them to give out their password. It might sound implausible, but it’s a lot easier than you might think.

Security Culture

Sadly, there is no straightforward solution for dealing with social engineering attacks. If you want to protect yourself against this kind of risk, you need to create a strong security culture in your organization.

This means that everyone in your organization takes security seriously and knows how to recognize cyber threats. A common way to achieve this is through seminars, presentations, and other activities.

With that said, you can’t just host a seminar on cybersecurity risks and call it a day. Cybersecurity is a constant process. To achieve a true security culture, employees need to have security on their minds at all times.

It helps to have a dedicated member of staff responsible for investigating potential cyber threats. Staff should report and all suspicious activity to this individual. This should be encouraged, even if the majority of reports are false positives.

Consider Shadow Security

Security culture is important, but pushing security too much can actually make your company less rather than more secure. When you implement excessive security policies, this results in what is known as shadow security.

Shadow security is when workers find the official security policy too restrictive. In response to this, they may adopt their own unofficial security methods.

This is problematic because most of your workers are probably not security experts. This means that they may inadvertently do things that could cause a data breach or some other threat.

To avoid this kind of behavior, you need to have an open dialogue with your employees. People may feel like the official policy is interfering with their ability to get work done. you may need to modify the policy to avoid workers taking matters into their own hands.

Risk Management Is Crucial

As you can see, risk management is crucial for running a nonprofit company. You need hardware and software solutions to keep your digital environment safe. You also need to develop a strong security culture in your organization.

If you want to learn more about running a nonprofit organization, check out our FAQs page.

Modern Fundraising: Community Centric Fundraising Movement

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Your community is where your donor base resides, so it’s time you start understanding it more. Listen to our podcast to find out how!

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Scaling Your Nonprofit: Moving from a Solo Operating to a Team with Travis Johnson

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Your nonprofit organization is only as strong as its weakest link. And if your nonprofit was previously a solo operation, and now more recently evolving to a team, then you need to know the importance of scaling.

Every nonprofit will have to determine what and when they need to scale itself as an organization. When expanding your organization, you need to consider important points like its infrastructure, budget, team members and even strategy as it relates to your mission. These are so important!

However, “scale” can mean many things. To ensure that you can grow your nonprofit through the most successful way possible, you need to ensure that your organization has certain structures in place that will make for a long-term future you can be proud of.

If you want to learn all there is about scaling your nonprofit, then you need to listen to this episode of A Modern Nonprofit Podcast. In this week’s episode, Travis D. Johnson of the Nonprofit Architect Podcast joins forces with Tosha Anderson of The Charity CFO for an in-depth discussion geared towards board members, charity leaders and aspiring nonprofit professionals.

LISTEN TO TRAVIS AND TOSHA DISCUSS HOW TO SCALE YOUR NONPROFIT HERE. 

On this episode, the two converse about important questions such as:

  • What do nonprofits need to scale so they can get paid?
  • What processes need to be in place in order for this to happen?
  • What is holding nonprofits back from taking these steps?
  • Does this process work for solo operations?
  • And more!

Travis Johnson is this week’s guest on A Modern Nonprofit Podcast!

It’s a great episode for any listener wanting to learn more about reaching your organizational growth goals and how scaling will effectively manage your expansion, if done correctly. You shouldn’t take on the challenges of the nonprofit sector alone! And fortunately, you don’t have to.

Here’s how podcast listeners like you are tackling challenges within the nonprofit sector

We’ve had many new listeners request a free consultation with Tosha and her team of expert, certified public accountants at The Charity CFO after recognizing that their organization’s structure and bookkeeping were in desperate need for improvement across a variety of areas. Our team performs outsourced accounting work for hundreds of nonprofits and we want to walk alongside your nonprofit to help you save money, modernize and truly achieve its mission. Check out our services here. 

Aside from Tosha, Travis Johnson is the current host of The Nonprofit Architect, which is the only nonprofit podcast dedicated to giving you the actionable steps needed to build a stronger nonprofit. He has interviewed tons of nonprofit leaders, business leaders, and consultants in order to help you say no to more work and say yes to more donations. Check out his podcast series here. 

Lastly, make sure you subscribe to both A Modern Nonprofit Podcast and The Nonprofit Architect! Hear something that stood out to you in this week’s episode? Share your thoughts with A Modern Nonprofit Facebook Group, which you can request to join here. There’s hundreds of nonprofit professionals conversing about topics and challenges they face across their organization. It’s one big, exciting think tank. Don’t miss out!

How Do We Classify Charities?

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You probably know that there are many different charities with many different causes. In fact, you might be the founder or part of the leadership team for a nonprofit yourself!

Nonprofit organizations have a lot of causes and missions. But, we can get even more specific than that.

What Qualifies as a Section 501(c)(3) Organization?

Under Section501(c)(3) and the IRS, there are three main types of charities:

  • Private Foundations
  • Public Charities (most common)
  • Private Operating Foundations

Private Foundations

According to the IRS, the difference between a private foundation and a charity has to do with the financial support it receives. Private foundations usually have a smaller donor audience and generate income from invested endowment funds. Then, they rely on this income to distribute grants to advance the nonprofit work of other organizations. An example of well-known private foundations include the Bill and Melinda Gates Foundation. 

Public Charities (most common)

The most common type of 501(c)(3) is a public charity. Public charities can accept donations. These donations are tax-deductible. In fact, one can donate up to 50% of their income, while corporations/businesses may donate up to 10% before being taxed. Typically, pubic charities are governed by board members. Now, take a second to reflect: are you/are your board members working too hard on your accounting and bookkeeping? Are you, or someone on your board, trying to teach themselves accounting practices and specifics? You shouldn’t be trying to overwork yourself, nor feeling distracted from your mission. We encourage you to view our services and plans for outsourcing your nonprofit on our website, which can be found here.

Examples of public charities include churches, animal wellbeing agencies and educational organizations. What type of organization do you oversee? Share in the post comments of this article!

Private Operating Foundations

The last, and least common 501(c)(3) organization(s), is what we call a private operating foundation. Many see private operating foundations as a hybrid between a public charity and a private foundation. Both private foundations and private operating foundations aren’t criticized as much as other charitable foundations because donors have close ties to charities.

What Current/Future Board Members Need to Know about Charities

Board directors and other nonprofit leaders must be aware of specific laws that they might navigate alongside, or against, when working in the nonprofit sector. An insightful article from Nonprofit Hub outlines some key things your nonprofit shouldn’t do! 

Next Steps for Charity Leaders

If you are ready to enhance, or begin, your nonprofit journey, we encourage you to check out A Modern Nonprofit Podcast, which is a weekly podcast series that The Charity CFO generates to help leaders, like you, maximize your mission. Also, make sure to check out A Modern Nonprofit Facebook Group, a community of leaders and professionals who converse about relevant topics every single day.

Strategic Planning vs Scenario Planning

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Recognizing potential situations and environments your nonprofit may encounter in the future, and determining how your organization should react, are important towards its long-term success. To build a successful nonprofit, one must learn the importance of nonprofit strategic and scenario planning.

While these two terms sound similar, they are fundamentally different. Quickly, strategic planning typically focuses on identifying and/or describing likely futures, then developing a plan that allows an organization to succeed. Similarly, scenario planning process tends to explore the uncertainty involved in analyzing a long- term future.

But, you shouldn’t just rely on the short paragraph above as your information, or all that you need to know for your nonprofit.

You should rely (and listen) to the latest episode of A Modern Nonprofit Podcast if you want to learn everything you need to know about strategic and scenario planning.

LISTEN TO EMILIE AND TOSHA DISCUSS NONPROFIT STRATEGIC AND SCENARIO PLANNING ON A MODERN NONPROFIT PODCAST HERE! 

On this episode, Dr. Emilie Socash, CEO of Nonprofit Help Center, to talk with Tosha Anderson, founder and CEO of The Charity CFO, to review this important topic. Some questions covered during the episode include:

  • What’s the difference between scenario planning and strategic planning
  • What’s unique about the scenario planning process for nonprofits (vs. for-profits)?
  • What does the scenario planning process look like? Is there just one way to do it? Does it require a specific skill set?
  • Can you give an example of how a nonprofit has effectively used scenario planning?
  • And more!

Make sure to subscribe to A Modern Nonprofit Podcast and share our episode to your nonprofit, professional network to get the word out about the helpful tips and tricks shared during this nonprofit-oriented series!

Dr. Emilie Socash is the CEO of Nonprofit Help Center, and also joins Tosha Anderson on A Modern Nonprofit Podcast!

So, you’ve listened to A Modern Nonprofit Podcast. Now what?

Nonprofit organizations—and the people who lead them—bring unique value to our communities, particularly during times of challenging change. The Nonprofit Help Center delivers a leader-focused suite of services that are grounded in organizational and leadership psychology, delivering transformational and long-lasting change where it’s needed most. Is your organization looking to build itself into an organization that can truly succeed? Become a NHC member today, which includes full access to all live and pre recorded webinars, special member resources, and a discount on coaching!

Visit the Nonprofit Help Center Website to learn more. 

And if you want to build your organization, you need to focus on the work that matters. That means you shouldn’t have to spend your nights and weekends completing financial paperwork, performing bookkeeping tasks or learning nonprofit accounting jargon. You need to outsource your accounting, and ensure you have a team of certified public accountants who actually know nonprofits.

If this sounds like your nonprofit and your own needs, then you should consider us, The Charity CFO. Discover what bookkeeping and accounting services we can provide your organization, then schedule a free consultation with us to start your journey.

 

 

Benefits of Having Nonprofit Accounting Services

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Is your nonprofit organization finding the mountain of accounting paperwork stifling? For a nonprofit organization, accounting can often take a lot of much-needed time away from achieving its mission. If this sounds like you, then you need to know how nonprofit accounting can transform your workflow.

Removing the burden of budgets and preparing reports can give your workforce newfound freedom. Read on for our guide on the benefits of nonprofit accounting services.

Nonprofit Accounting Services Can Monitor Financial Visibility

When managing the finances of a nonprofit, the deficit between transactions and the appearance of money in a ledger can be a long time. While a transaction may happen once or twice in a month, it may take a while for it to register on your books.

Nonprofit accounting services can ensure that transaction entry is entered promptly. Done in real-time, this makes the planning of a budget easier and more transparent.

Security

Security in your accounts, either from external or internal factors, is often overlooked. Malicious attacks and the theft of information are a real threat to any nonprofit, that needs to be taken seriously.

You should already have an IT department, who can monitor your network for suspicious activity. By having a designated accounting service, you also have someone who can make sure financial information is secure. The accountancy team can observe in macro to see if details change or things do not look right.

By having dedicated accounting services, you also limit the number of people on your staff who have access to finances. For most nonprofits, they have a choice to let almost everyone or hardly anyone view their finances. Accounting services can facilitate transparency while also monitoring access.

They Can Track Grants

If you are tracking grants, it can become confusing and messy, particularly if you have applied for multiple ones. They may all be at different stages or require different actions, such as submissions, at various times of the year. You also need to be in regular contact with the grantors, to see where you stand on getting the grant itself.

All of this can lead to financial instability as you wait to hear the news. If you have other jobs to work on, grant tracking can often become lost in the workload.

Specialist nonprofit accounting can track all grants for you. It will use either a designated tracking method for grants via software or have someone to deal with your cases. This will allow prompt communications, applications, and updates.

Up to Date Compliance

Accounting principles for all businesses are set by the Financial Accounting Standards Board. Very often, these can change quickly. If you happen to miss them and account incorrectly, then it can be costly.

Having a dedicated nonprofit accounting team will mean you do not have to check for these updates. As professionals, they will keep abreast of any changes put out by the FASB.

Digital Services

A dedicated team for your finances will have specialist accounting for nonprofit organization software. These will not only track and record finances but track applications and workflows. This can result in the creation of automated processes that make the whole system much easier to use for you and your team.

You will no longer have to rely on reams of paper and receipts. Records can be stored digitally and archived without the need for bulky physical records.

Quick Data Access

Financial updates need to happen on an almost daily basis. It is no longer enough to get a monthly financial report. In a nonprofit organization, where income is not a steady turnover, then a month can be a long time.

To run your organization you need access to accounts quickly. Nonprofit accounting can produce reports that include all the information you need. Budget, expenses, donor reporting, grant reporting, and cash balances can be produced almost instantaneously.

Once you have this, you can make better assessments and decisions on a daily basis. You will be able to make better management choices and inspire confidence in your donors.

Tax Reporting

Tax reporting for nonprofit accounting is complex. This is to ensure non-profits are not acting fraudulently, and that tax exemption applied to nonprofits is not used in an incorrect manner. This makes the whole process, especially for small businesses, hard to complete.

As your accounts will also be in the public domain, it is important that you get this whole process right. Doing it yourself can take a lot of time, and even then you may get it wrong. Nonprofit accounting services will be able to use their experience to get this done quickly and efficiently.

Financial Experience

Your organization may have someone trained in accounting or with some background in it. However, for most small nonprofits this is not the reality. This means inexperienced people are left finding their way with accountancy.

You may also have board members who are well-known professionals. Very often they will have hired accounts to do that aspect of the job for them. Having professional financial accounts can provide them with the level of accuracy they need to make the right decisions.

Getting the Right Service

Now you know the benefits of nonprofit accounting services, you need to locate the correct company. Do not opt for standard accounting services. Nonprofits have a unique specialism and set of rules that require expert assistance and knowledge.

Your first stop should be Charity CFO. We bridge the gap between the accounting you need and the accounting you can afford. Contact us here to discuss specialist accounting services for your nonprofit.

From a Nonprofit CEO: How to Understand Your Financials

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Nonprofit financial statements, reports and jargon are the key to ensuring your organization, or business, can operate at its full strength. Thus, it is important that you can understand financials- which involves reading, creating, editing and analyzing your financial reports.

Financial reports will shine light as to how much money your organization operates with, how much donations you received and how much your staff are making. Understanding these numbers is especially important when tax season rolls around!

To better help nonprofit leaders and CEOs understand their financials, Tosha Anderson of The Charity CFO invited Sara Lahman of Annie Malone Children and Family Services on A Modern Nonprofit Podcast.

Sara Lahman of Annie Malone is this week’s A Modern Nonprofit guest!

Previously an Assistant Vice President of Residential Treatment Services with Great Circle, Sara knows a lot about helping the community. And as the CEO of an organization with a very influential mission, she knows how important nonprofit finances are.

If you want to learn how to understand nonprofit finances to help your nonprofit thrive, then you need to subscribe and listen to the latest A Modern Nonprofit Podcast episode!

LISTEN TO SARA AND TOSHA DISCUSS FINANCIALS ON A MODERN NONPROFIT PODCAST HERE! 

Some of the topics the two discuss include:

  • Differences between being the head of a program vs. head of an entire organization
  • Tips and tricks to understand numbers
  •  The most important thing(s) a nonprofit leader should know about their financials
  • Strategies to improve financial knowledge for beginners
  • And more!

Don’t forget to subscribe to our podcast for future episodes, as there’s tons of more exciting content coming your way!

So, you’ve listened to the most recent episode of A Modern Nonprofit Podcast. Now what?

Everything that Annie Malone does is aimed at ‘Making Lives Better’ for the children and families they serve. As a premier organization that provides a diverse array of services advancing the quality of life for children, families, and communities, Sara Lehman and her team at Annie Malone play a vital role in their community. To learn more about Sara’s organization and to support their mission, make sure to visit their website here. 

For individuals who might have realized you’re in over your head with your nonprofit financials, then you are not alone. Have you considered outsourcing your bookkeeping and accounting? Check out the services and pricing that The Charity CFO has to offer, and get the help you need to ensure your financials are not only up-to-date, but efficient and modernized.

Fortunately, you’re not alone if you are struggling to understand nonprofit financials. That’s why Tosha and her team created A Modern Nonprofit Facebook group, which is filled with insightful comments, posts and discussions from industry leaders. The best part? It’s completely free to join this inclusive community! Learn more and join today using this Facebook link. 

When to Look for Expert Nonprofit Accounting Services

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When you are a nonprofit organization, finding expert nonprofit accounting services may not be high on your to-do list. Surely there are more important things to focus on instead of focusing on accounting, especially because your organization’s goal is not to make more profit?

In reality, nonprofit organizations can benefit a lot from nonprofit accounting. This article will go through the scenarios when you would need to look for expert nonprofit accounting services.

1. You Need to Consider COVID-19 Implications

The pandemic has resulted in a lot of changing regulations and greater overall uncertainty regarding the finances and accounting requirements of a firm. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was passed in March 2020, affects nonprofits as well.

For organizations with less than 500 employees, you can have access to small business administration (SBA) loans or loan forgiveness. You can also access emergency economic injury disaster loans (EIDL) grants and employee retention credits.

For larger organizations with more than 500 employees, you can only access employee retention credits and EIDL grants.

The eligibility criteria and the need to report benefits from the CARES Act will mean that you can benefit from having expert accounting services providing you with greater insight. They are a lot more knowledgeable on how the CARES Act will change what you report on your statements, and they will ensure that your financial reports will accurately reflect the adjustments while complying with regulations.

At the same time, other COVID-19 considerations can cause an accounting headache for your nonprofit. For instance, you may experience modifications in the number of liabilities you have or will need some guidance with the ongoing financial concerns of your nonprofit.

The COVID-19 pandemic is an unprecedented situation, and responding to accounting rule changes can be a challenge for everyone. By relying on an accounting service, you can rest well knowing that your audits and bookkeeping are all up to par.

2. You Find it Hard to Manage Cash Flow

Managing cash flow in a nonprofit can be more difficult or unstructured than a typical company. At the same time, it’s an important thing to consider, because you need that money to keep your organization going. You will therefore be able to benefit from nonprofit accounting, which aims to both manage and improve your cash flow.

A common challenge that nonprofits face is that their greatest cash flow only happens in certain seasons or months in a year, which means they will have to allocate this money throughout the less profitable months. By taking the time to properly plan your cash flow and ensure your balances will remain positive, you will need to spend a lot of time evaluating your finances and your budget.

An accounting service can analyze the existing financial information to understand where you get most of your revenues and benefits, and whether this is enough to sustain operations for a certain period of time. They can also pinpoint risk areas, where you may be spending too much or where you may be liable to losing a lot of money.

The information they gather will allow you to make well-informed decisions regarding your cash flow.

3. You Need Better Staffing and Payroll Strategies

Payroll management is a headache for any company, and it is a particularly challenging aspect of running operations for a nonprofit. Nonprofits are usually motivated by passion, so matters of staffing changes or payroll requirements can be a bit awkward to focus on. What happens, for instance, if there are some incredibly loyal staffers who are also becoming financially burdensome?

An accounting service can provide some insight into this area by identifying cost-effective strategies and the financial impact of having a certain amount of staff members. While it may not be the easiest thing to consider, expert accounting services will be able to pinpoint areas where you will have to cut costs to ensure that your organization can succeed in its endeavors.

At the same time, you will benefit from speaking with an accountant before hiring someone new so that you can understand how this will impact your financial position in the long run.

4. You Have Difficulty Tracking Revenues

As a nonprofit organization, the way you receive revenues will be very different from the orthodox method of selling products for profit. Your revenue will come from donations and grants more than anything else. The accounting process will be different for you, but it is just as important so that you can manage cash flow and understand your company’s financial position.

By having nonprofit accounting services helping you out, they will be able to maintain accurate and updated financial records which track all the revenues you receive. This ensures that you have a sound knowledge of how well your company is doing, and also prevents the possibility of you presenting inaccurate data in your financial reports.

Tracking this information will also be important in ensuring you continue receiving grants in the future.

Situations When You Need Nonprofit Accounting Services

As a nonprofit, you can benefit a lot from accessing nonprofit accounting services. Your accounting needs may be unique, and you may not be profit-motivated, but managing your finances is essential to ensure your organization survives.

Nonprofit accounting services can provide assistance if you need help with COVID-19 considerations, if you find it hard to manage cash flow, if you need better staffing strategies or if you have difficulty in tracking your revenues.

Contact us today for expert accounting services for nonprofits.

How Nonprofit Accounting Services Can Help You Succeed

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Did you start your nonprofit because you love number-crunching?

Or was it because you have a passion for helping those in need and serving your community?

Most nonprofit directors wish they could focus on relationships, not finances. However, professional accounting help can seem intimidating at first. How do you know when it’s time to transition to professional accounting?

Are you wondering whether nonprofit accounting services are worth it? If so, this article is for you. Read on to learn how specialized accounting services can help your nonprofit succeed.

Lets You Focus on Your Nonprofit

If you founded or joined a growing nonprofit, there are likely many ways you want to give your time. You’re busy hosting galas, networking with your supporters, and doing charity work.

As your organization grows, its finances grow too. Success makes your nonprofit more complex. That means you’ll need to devote more time to financial administration.

Does the financial work take your attention away from your organization? If so, it may be time to seek professional accounting support.

After all, a professional accountant can look after the books. Only you can lead your nonprofit.

Choose the Services You Need

There are two main types of financial administration. Your organization will need both: bookkeeping and accounting.

As a nonprofit, you may be able to fill one of these roles with volunteers. You may find someone to donate their skill to cover a few of these tasks. Every nonprofit has unique resources, and unique needs as well.

That’s why nonprofit accounting services are flexible. They allow you to decide whether you need to outsource some or all of your financial management. This makes professional accounting more affordable as well.

Bookkeeping Services for Nonprofits

A bookkeeper manages the daily financial interactions of your organization, including:

  • Accepting and recording donations
  • Paying out bills
  • Managing banking deposits
  • Allocating and recording expenses
  • Executing payroll

Many nonprofits manage these tasks in-house. This works well if they don’t overwhelm your time. You may even divide these tasks among your employees for convenience.

However, as your organization grows, your daily financial tasks increase as well. You may find that they put increasing demands on you and your staff’s attention.

Don’t overlook the dangers of assigning bookkeeping to financially untrained staff. Innocent bookkeeping mistakes can reflect badly on your organization.

If your staff is spending its time on financial tasks instead of charitable work, it’s the right time to seek professional accounting services.

Accounting Services for Nonprofits

Accounting involves analyzing your organization’s financial health. It gives an in-depth look at your nonprofit’s transactions and financial history.

CPA services (chartered professional accountants) include:

  • Making sure your expenses and income stay in balance
  • Planning an annual budget
  • Analyzing expenditures
  • Preparing your year-end financial report
  • Evaluating your organization’s overall financial wellbeing

Some of these services can be conducted in-house if you have accounting-trained employees (or volunteers). However, they are time-consuming, especially for non-professionals.

A specialized accountant can administer your accounts faster and more accurately than non-professionals. You will need an independent accountant to perform your mandatory yearly audit (see more below).

Navigate Nonprofit-Specific Issues

Nonprofit organizations have different financial inner workings than businesses. They face unique financial challenges and unique financial requirements as well.

A nonprofit accounting service understands these differences. It can help your organization navigate the special financial requirements you will face.

Nonprofit Audits

Most United States nonprofits are required to have a yearly financial audit. This audit must be conducted by an independent party. Some states require proof of a financial audit before granting registered nonprofit status.

A transparent yearly audit assures donors that your nonprofit is financially responsible. It gives the stamp of integrity to a charity.

However, nonprofit finances are different than for-profit businesses. Their financial audits have to be conducted differently as well. That’s why it’s essential to choose a nonprofit auditor who can analyze your nonprofit finances.

Nonprofit Taxes and Tax Reports

Keeping track of revenue in a nonprofit is always a challenge. Nonprofit revenue streams can include:

  • Personal donations
  • Fundraising drives
  • Honoraria
  • Membership fees
  • Public grants
  • Private foundations
  • Monthly contributions

With such diverse income streams, nonprofits often struggle to account for their income.

Your organization needs to report your income accurately. Otherwise, you could incur penalizations.

You may also need professional help when it comes to registering for your 501(c)(3) tax-exempt status. Professional accounting services can help in both these areas.

Are Nonprofit Accounting Services Worth It?

Nonprofits often start very small. When is the right time to spend money on outsourcing your accounting tasks?

First, think about how much time your staff currently spends on accounting and bookkeeping.

Time is money, even in the nonprofit sphere. If your staff spends excessive time on finances, you are already spending money on accounting.

Second, think about the quality of your financial management. Do-it-yourself solutions may seem attractive in the short term. In the long term, however, inexpert bookkeeping can make your organization seem unprofessional.

Most importantly, consider the quality of your charity work. Is your staff so busy with administrative work that they don’t have time for your mission? When you spread yourself too thin to do your charity work, it’s time to get accounting support.

Accounting Services For Your Nonprofit

Your nonprofit may have started small. However, it may quickly outgrow your financial administration abilities. If your finances need more time than you can give to them, it’s time to get a professional solution.

Is your organization ready for nonprofit accounting services? Contact us today to schedule your free consultation.

How to Raise Donations with Online Marketing, featuring Jeff Roman of EPIC Agency

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For years, nonprofit fundraising has been quietly evolving. Specifically, industry professionals have been watching as it moved further and further online. And in 2020, the COVID pandemic accelerated this process, ultimately changing your options as a not-for-profit leader to raise donations.

Jeff Roman of EPIC Agency is this week’s A Modern Nonprofit guest!

Such a drastic change has forced fundraising practices to transform into digital endeavors. That’s why Tosha Anderson, founder & CEO of The Charity CFO, invited Jeff Roman, founder & president of EPIC Agency onto A Modern Nonprofit Podcast. In this informative episode, the two cover topics like:

  • Why digital marketing is so important for nonprofits and their fundraising goals
  • How to maximize social media to help spread awareness about your organization
  • Understanding the power of social media, trending topics and hashtags for nonprofit social media channels
  • Tips new nonprofits can implement to help them achieve best brand
  • And more!

LISTEN TO JEFF ROMAN AND TOSHA ANDERSON DISCUSS ONLINE MARKETING FOR RAISING DONATIONS EPISODE HERE! 

For listeners of A Modern Nonprofit Podcast

Are you looking for a team of specialists who can deploy integrated solutions that seamlessly connect with your target audience, create world-class content to highlight your organization, strengthen and develop new revenue channels, help you increase platform visibility, sell your products and services, or promote a cause or mission well? If so, then you are in luck. EPIC Agency is here to serve you. If you’re interested, feel free to get in touch with one of their partners will contact you about beginning the proposal process. Make sure to check them out!

And for individuals looking for specialized, cost-efficient nonprofit bookkeeping and accounting services, look no further than Tosha Anderson of The Charity CFO. With more than 10 years of experience in the not-for-profit sector, Tosha knows what it takes to have financial thought leadership. So, stop working late nights and doing the books yourself. Get an expert team of certified public accountants to help you, all at a price you can afford.

Schedule a free consultation with Tosha to start your bookkeeping journey. 

Keep up with A Modern Nonprofit Podcast

Want to stay up to date with all the latest and greatest that A Modern Nonprofit Podcast has to offer? Make sure to subscribe to the podcast series so you don’t miss a beat. 

Also, if you’re not already part of A Modern Nonprofit Facebook Group, you don’t know what you’re missing out on. It’s a great community of nonprofit and industry leaders who converse in an open space that encourages collaboration and learning. Request to join here! 

A Founder’s Story: High School Student turned CNN Hero

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Zachary Wigal is an avid gamer, hard rock devotee, traveler, sporadic bookworm, and racing enthusiast from southeast Michigan. And now, as the founder of Gamers Outreach Foundation, his life is split between Ann Arbor and Los Angeles.

His nonprofit organization helps kids cope with long-term medical treatment by providing gaming hardware and software to hospitals. From a bunch of high school kids with an interest in hosting video game tournaments, to helping thousands of children per year in hospitals, Gamers Outreach has evolved since its founding. The organization’s vision has since evolved to ensure children in hospitals everywhere have access to relief and activities.

LISTEN TO ZACHARY WIGAL AND TOSHA ANDERSON ON A MODERN NONPROFIT PODCAST HERE! 

Zachary’s vision and unique nonprofit experience is what prompted Tosha Anderson, founder & CEO of The Charity CFO, to join her on A Modern Nonprofit Podcast. In the latest episode of this widely-informative series, the two discuss:

  • How to target unique donors and volunteers
  • The power of social media and marketing for nonprofits
  • Changing leadership styles of nonprofit founders and enthusiasts
  • Hacks to effectively managing a small team
  • Advice to newbie nonprofits
  • And more!

If you’re looking for a compelling story and want to be inspired to achieve more with your not-for-profit organization, then you’re in luck! Don’t forget to subscribe to A Modern Nonprofit Podcast for more content, stories and insight.

Additional Notes for Listeners

Interested in helping others level up? You can make a difference for your fellow hospitalized gamers too. Join Zachary’s quest to provide kids in hospitals with access to play through the power of video games by visiting the Gamers Outreach webpage. You can also follow Zachary and the entire Gamers Outreach crew on Twitter.

And if you’re looking to maximize your nonprofit’s mission as it relates to improving your accounting and bookkeeping, then you are in luck. Tosha and her team of expert accountants at The Charity CFO provide specialized bookkeeping services for nonprofits of all shapes and sizes. Visit our website to learn more about the unique opportunity to walk alongside our boutique, nonprofit-centered accounting firm.

Using Nonprofit Accounting Services to Help with Payroll Management

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Having a hard time managing your payroll?

This problem is much more common if you’re a nonprofit organization. Whether you’re a public charity, private foundation, or civic leagues, the special rules on nonprofit payrolls can be taxing. You have varying HR elements, from volunteers and contractors to board members.

However, a simple solution is to hire nonprofit accounting services. Excited to overhaul your payroll management? Read on and learn these impressive facts about outsourcing accounting services:

1. Payroll Services Remedy Mistakes

Mistakes can lead to law-imposed penalties. If you’re losing money because of payroll errors, outsource your accounting services. These professionals are vigilant and can resolve them before they become troublesome.

Nonprofit accountants use automated audit software to verify each payroll. They’re proactive in letting you know when they encounter errors. It paves the way to corrections before processing the payroll.

You’ll get the accuracy nonprofit payroll software offers. These professionals check your work constantly. They help you avoid mistakes while giving you ample opportunities to learn.

Getting help means familiarizing your accounting department with the rules. It prevents complicated situations from happening. It allows you to be more decisive and have more confidence with how to go from there.

You need not take your chances when you have payroll experts. They will address various issues to ensure you’re following the law. You’ll get a provider that caters to your nonprofit accounting needs.

The software these companies use is complex and specialized. It aids with every step of the process when checking for accuracy. It saves lots of time since you need not retype information across reports.

2. Payroll Services Eases the Process

Nonprofit organizations often put too many roles on their HR and accounting departments. If it’s your situation, hiring an accounting company is beneficial. It allows you to focus more on other issues like finding proper connections to grow your donations.

A payroll service offsets the hours spent reviewing and verifying payroll data in-house. It’s more efficient and can eliminate the risks of underpayments and late payments. It simplifies the process for your HR or accounting teams.

It’s also worth noting that the sooner you process payroll, the faster the payments are. It’s an important asset especially when your paid employees have limited budgets. With more steps eliminated, you won’t have to worry about low morale.

3. Payroll Services Enable Paperless Processing

Paperless payroll systems save more money while staying environment-friendly. Whether you’re looking for more efficiency or care about the environment, payroll services fulfill both. An online nonprofit payroll system streamlines the process across various departments and roles.

It also means you’re riding the wave of the future with paperless payroll. With enough expertise, you can collaborate with your accounting service. It helps you shift from paper to mobile payroll apps and document storage online.

You’ll have more functionalities with your payroll system. Employees can look at their payroll data in real-time. Your accounting department can change security levels to keep sensitive data from getting compromised.

4. Payroll Services Enable Real-Time Tracking

Things are easier when everyone gets quick information access. When professionals track your payroll system, you’ll know when problems happen. It means making timely changes to correct these issues.

It allows you to get closer to a hassle-free payroll process. You’ll always be on time, ensuring everyone’s satisfaction. This process becomes even better when using an integrated system.

You’ll always have an idea about the current labor costs situation. It allows your nonprofit to make more financially-sound decisions. It ensures everything is up-to-date and adherent to your cause.

Why Nonprofit Accounting is More Difficult

Without professional help on accounting for nonprofit organizations, you’ll encounter some hardships. The following are unique challenges for nonprofit payroll accounting. Use them to inspire your organization to outsource:

1. Financial Inexperience

Your board members are accomplished professionals. They have lots of useful skill sets that bring benefits to your organization. However, it’s uncommon for them to come from financial backgrounds.

Your organization must have a higher level of financial transparency. It gives your organization the right information for decision-making. Understanding the nonprofit’s financial aspects is necessary to help the board focus on a higher-level view.

Never let financial bookkeeping distract your leadership from the mission. Outsource professionals that specialize in nonprofit organizations. It maximizes your organization’s greatest potential.

2. Donor Expectations

As a nonprofit, your donor expectations are one of your priorities. Entities donate funds because they believe in your cause. Your funds must go to where your donors expect them, like programs that further your mission.

Your organization must do it without overspending. It means smart budgeting on administrations, expenses, and fundraisers. Keep your donors updated on your expenses to help build their trust.

3. Strict Audit Requirements

Nonprofit organizations have stricter audit requirements. People expect your reporting and internal control standards to be better. Most states require audits if you get at least $500,000 in donations.

This standard is necessary because the funding comes from public donations. It means everyone must know where the money goes. Your organization is accountable to use the funds correctly and advance your mission.

4. Public Trust

As said above, your funding comes from various public entities. It places the burden of public trust upon your organization. These people expect you to have an effective and efficient operation.

Often, they hold your organization to higher standards compared to for-profit businesses. Some organizations serve as watchdogs. They track your financial activities to ensure you’re using your funds as intended.

 

The same applies to your payroll management processes. To avoid discrepancies, invest in nonprofit technology. It can help you further your cause, helping you establish your local presence.

Hire Nonprofit Accounting Services Today!

Never let the lack of financial expertise ruin your nonprofit organization. Outsource nonprofit accounting services to take the burden off your shoulders. It allows you to focus on more important matters for the greater good.

Need a hand with accounting? Use our contact form and request a meeting with us today.

A Beginner’s Guide to Nonprofit Budgeting

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Nonprofits are not run to make money. But they do make serious progress.

More than 1.5 million nonprofits are registered with the IRS. They contribute more than one trillion dollars to the economy. One-quarter of American adults volunteer with a nonprofit, helping their community on a number of issues.

You will make a difference as soon as you start a nonprofit. But you can make a real difference if you understand nonprofit budgeting.

However much money you have, you need to know how to allocate it into worthwhile projects. There are a few things you should understand in order to do that. Here is your quick guide.

Distinguish Nonprofit Budgeting From for-Profit Budgeting

You may have experience in budgeting and accounting for for-profit organizations. That will help you when budgeting for a non-profit. But you should know that there are substantial distinctions.

For-profit businesses are accountable to their investors. They have a lot more autonomy accordingly. As long as they are within the bounds of the law, they can take any measures they need to make money.

A nonprofit organization is accountable to anyone who donates to it. They must report how they use their funds, then they must hold to their word.

For-profit organizations distribute their profits to their investors. Nonprofit organizations must reinvest their profits into themselves. They can pay for full-time employees, but all profits must be built for the greater good in some way.

Nonprofits are exempt from paying taxes on their funds. This makes tax forms far easier. But they are liable to payroll taxes, just as for-profit groups are.

Break Down Your Budget Components

Your budget as a whole should allocate resources for all operations. You will make clear how these resources are allocated in several ways.

The nonprofit budget is actually two separate documents. The operating budget shows what the projected revenue of the year will be. It also logs the expenses of the entire organization.

All nonprofit funding streams should be defined. When possible, the budget should list the names of donors. This helps with donor management and transparency.

You should also distinguish your different expenses. You incur both program and overhead costs. List out every cost there is, even small ones.

While the operating budget looks at one year’s financial picture, the capital budget looks long-term. It projects what the future expenses and revenue will be, given the track record of ongoing and multi-year projects. This helps executives strategize.

Every budget component should correspond to a specific activity. If there is an unnecessary cost, it should be cut out. If there are leftover expenses, those should be used in some way.

Conceive the Budget Itself

The process of making the budget should begin early on. The board of directors should discuss, debate, and approve the budget before the start of the fiscal year.

Start by negotiating a timeline with the board. Make sure you have time to write it out, but you should leave enough time for them to discuss it.

Agree on what the budget template should look like. Have the board give you the budgeting resources that you need. This includes money set aside for professionals to look over your work.

Review all relevant financial documents, including last year’s operating budget. If there is any variance between actual revenues and projected ones, understand why that is the case.

Take time to do your research. Talk to the nonprofit’s accountants and external financial advisors.

Develop several drafts of your operating and capital budget documents. Ask other budgeting experts to oversee your work. Take their suggestions and make edits accordingly.

When you have a good final draft, deliver it to the board of directors. If you can sit in on their meetings, do so. Answer their questions and ask new ones about what the future of the company will look like.

Run Budget Reviews

Budget reviews are essential components of a nonprofit’s financial life. Because nonprofits must put all revenues back into the organization, budget reviews are check-ins to ensure that this is being done.

You should conduct a personal review every week. You should check to make sure all financial goals are being met, especially with funding. If your nonprofit is using too much money, it will run into trouble.

You should then conduct a teamwide review every month. All of you should look over the finances for the month.

You should examine the balance between budgeted and real-world expenses. Your team should take note of all discrepancies so future budget components fall in line.

You should also conduct quarterly reviews. This is when you review the entirety of the budget. You can track previous discrepancies and see if they line up with actual revenue streams.

An annual review loops other relevant parties into your nonprofit’s financial picture. You should tell the CEO how the budget stayed on course over the last year.

The two of you can talk about program outcomes. If something did not work, you can cut it or adjust its funding. Use their oversight to adjust the budget for next year.

Know About Nonprofits

Nonprofit budgeting is important to your nonprofit’s financial footprint. Whatever experience you have with for-profit budgeting, put that aside. You need to report how all of your funds are used to support your cause.

When making a budget, be as specific as possible. Distinguish between real and projected expenses and revenues.

Take time drafting out your budget. Set clear terms and expectations with the board of directors. Then run several budget reviews, including an annual one with the CEO.

Get the support you need to make a difference. The Charity CFO offers premium budgeting resources for nonprofits. Contact us today.

How to Create a Budget for Grant Writing

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Crafting a budget for grant writing can be tricky. That’s why you need to listen and subscribe to A Modern Nonprofit Podcast, feat. Kate West.

Read more

How Nonprofit Technology Can Further Your Cause

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Are you the proud owner of a nonprofit that’s looking to take your organization to the next level? Are you curious to learn about different things you can integrate to give yourself an edge? If so, then you need to learn more about how nonprofit technology can streamline your organization.

Doing so can help turn your nonprofit’s greatest weakness into a strength. For example, with the right accounting services, you’ll be more in-tune with the donations that you receive.

See below for an in-depth guide highlighting the benefits of nonprofit technology and how it can help your organization thrive moving forward.

1. Well-Oiled Machine

Nonprofits are like fish, they can only grow to the size of the pond they live in. If you don’t take the time to organize your business model, it will stunt the growth of your organization moving forward.

Not to mention the fact that if you make a mistake such as losing funds that were donated to you, you could be charged with the misappropriation of funds.

Despite your best effort, you might find it difficult to balance your organization’s need for things like event planning, bookkeeping, production, communications, marketing, and so on.

This is where nonprofit technology can be of tremendous help. For example, you could use event planning software to organize every event or gathering you have from this day forward.

It can help you get a proper headcount, see who is bringing what (EX: tents, food platters, etc.), and where your volunteers will be assigned that day.

This software can also help you control your budget. If you know the exact number of people attending, then things like calculating food serving sizes become that much easier. Stick with the one-pound rule: cater one pound of food for every adult in attendance, as well as 1/2 pound for every child.

2. Optimize Communication With Your Donors

Every successful nonprofit has a group of advocates. These are what’s known in the industry as “supporters”. However, a constructive nonprofit doesn’t wait for the supporters to take action, they’re proactive in keeping their supporters engaged.

Nonprofit technology has made it easier for organizations to keep their most active followers engaged. You can streamline communications with them and maximize each supporter that you have.

For example, you can use your best judgment to invite the right supporters to events they’ll be interested in. This defeats the traditional “email blast” method, which can quickly cause them to lose interest.

It can also help you keep in constant communication with them. You can use technology such as Slack, Zoom, etc. to discuss your nonprofit initiatives with them in their preferred method of communication.

Nonprofit technology can also make it just as easy to talk to your entire support network as it is to talk to one individual.

Let’s say you want to alert everyone to an upcoming event, but wanted to provide more insight to certain individuals. If so, you could use Slack to send a message to the entire group, then direct message those that you had extra insight for.

3. Better Understanding of Your Donors

First and foremost, if you’re struggling with balancing your organization’s finances, don’t leave that to chance. Hire a nonprofit accounting service to get everything back on track.

To ensure financial security for your nonprofit in the future, you have to gain a better understanding of your donor base. The more you know about them, the more engaged they will become.

There is nonprofit-focused CRM (customer relationship management) software that can help you:

  • Track all donations on an account by account basis.
  • Connect your donors/supporters with other like-minded supporters in your database (to form a community).
  • Track the events that each donor attends on an account by account basis.
  • Understand the best forms of communication with each donor.
  • Organize all of the contact information for each donor in their accounts.

Without a CRM system, a person might attend one event, donate $25, then slip through the cracks of your nonprofit’s outreach capabilities. Make sure that no donor is ever left out. It’s how you grow the community surrounding your organization.

4. Increases Your Revenue

Say no more, right? If there’s a way to increase your organization’s revenue, you’re in! Nonprofit technology has proven to do just that for those that take advantage of it.

By integrating nonprofit technology, you can offer ways for your donors to donate online. They simply enter in their card information as they would when they online shop.

This makes it incredibly easy for you and your donors. You can also offer them a way to set up monthly or bi-weekly withdrawals from their account, so they don’t even have to think about it anymore.

5. Optimize Your Website

Do you wonder why it seems as if your site visitors are landing on your site, then navigating away from it without clicking on any other page? This is what’s known as a bounce rate.

Nonprofit technology can help you assess what issues your site has that are harming the site user experience (in other words: what’s scaring them away). This can help you lower your bounce rate and capitalize on those that come across your site.

The more site visitors you capture, the more donors you have for your nonprofit organization. Then you can use your CRM software to build meaningful relationships with each of them!

Take Advantage of Nonprofit Technology Today

Now that you have seen several ways that you can take advantage of nonprofit technology for your organization, it’s time to take action!

Be sure to visit this page to listen to our podcast, the Modern Nonprofit Podcast, to learn more about streamlining your organization.

For more inquiries, please be sure to reach out via our contact us page and we will be happy to assist you further.