Tag Archive for: strategy

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.

Nonprofit Governance and Working with Leaders

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Working with leaders and being part of nonprofit governance is a valuable perspective to possess in the not-for-profit space.

There are many key players within nonprofit governance. Regardless if your nonprofit is a small organization or a larger nonprofit, each individual plays a critical role towards the success of a decision-making process.

Understanding the mechanics of the mission should be your ultimate goal as a nonprofit leader. Thinking about responsibilities, open communication and holding others accountable are just some of the points discussed by Deaconess Foundation Director of Partnership & Capacity Building Kiesha Davis, who joins The Charity CFO Founder and nonprofit accountant Tosha Anderson in this week’s episode of A Modern Nonprofit Podcast.

Listen to A Modern Nonprofit Podcast Episode 6: Nonprofit Governance with Kiesha Davis HERE. 

Kiesha and Tosha cover many important considerations that you must know in order to challenge and grow his or her nonprofit board, including:

  • Helping your board understand their roles and duties
  • Strengthening your overall board through specific training and tips
  • The importance of board assessments- and why you must implement them
  • Utilizing volunteer board members and ensuring balance with strategy
  • And much more!

This is a great episode if you want to take your nonprofit leadership and internal processes to the next level in 2021.

Nonprofit governance is critical towards helping your board and nonprofit accounting.

Cultivating improvement in your board members will stimulate not only engagement, but success and opportunity for staff to support one another.

Who’s All in Episode 6 of A Modern Nonprofit Podcast

Kiesha Davis stewards a program of trust-based philanthropy with the Foundation to build the power to advance its public policy agenda for child well-being. She leads grant making within the foundation’s program portfolio, as well as provides capacity building support and relationship management with funded and prospective partners. Learn more about Kiesha and her organization here. 

As Founder & CEO of The Charity CFO, Tosha Anderson committed her career to working with nonprofits across the United States, with a focus on providing CFO services to even the smallest nonprofits. After realizing an industry need for specialized accounting services with limited financial resources and an increasing pressure to keep costs low, the nonprofit enthusiast has helped hundreds of nonprofits achieve best accounting practices.

You’ve Listened to Episode 6…Now What?

If you have taken a look at your board, or realize that you are a struggling board member bogged down with accounting tasks when you know you should be focusing on other areas of your nonprofit, request a free consultation with our team of expert accountants today, and consider outsourcing your nonprofit bookkeeping.

Want to learn more about nonprofit governance and working with not-for-profit leaders?

The conversation’s only getting started. Check out our YouTube Channel to see episode clips and tricks.

Also, don’t forget to join A Modern Nonprofit Facebook Group, where you’ll have exclusive access to industry secrets and have an opportunity to conduct insightful conversations with professionals from across the nonprofit sector. Join and share this rapidly-growing community with your network.

 

 

Create a Nonprofit Operating Budget

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Are you looking for new ways to keep up with the hustle and bustle of your nonprofit organization? Have you noticed that the bookkeeping is starting to slip by the wayside? If so, then you need to create a nonprofit operating budget and learn how to manage it effectively.

Doing so can help ensure that you’re staying on task. you’ll find yourself with more financial peace of mind after knowing that there’s a specific purpose for every dollar you raise.

See below for an in-depth guide on how to create a nonprofit operating budget to get yourself back on track. Be sure to consider everything that’s listed.

1. Set Aside Time with Your Team to Manage your Budget. 

Perhaps this is the first time that your organization will be addressing the budgetary needs that you have. Maybe it’s been so long since you kept a budget that you need to reassess where you are currently.

No matter the case, it’s important that you set aside time to hash out a new budget with your team. Find a time period where at least one person from each department can offer their input.

For example, if you have an in-house marketing coordinator, be sure to clue them in on your new budget to ensure your marketing needs are being met.

You’ll find that a great deal of this meeting will be compromised. Don’t get discouraged if it feels like you can’t get anywhere at first. It’s all about compromise. Every department will feel like their side of the operations deserves a higher portion of the budget.

If you need assistance with building your budget, then you can also decide to outsource it to a nonprofit accounting and bookkeeping service. If you need help creating a nonprofit operating budget, The Charity CFO is an expert accountant for charities. 

2. Gather Data

You might be wondering to yourself “where am I supposed to come up with the numbers? How would I know how much to budget for marketing, events, fundraising, and so on?”. By looking at the previous data.

They say business is all about learning from the past; building a nonprofit operations budget is no exception.

 

How do you create a nonprofit operating budget? The Charity CFO explains.

Gather up all your bank statements from the checking account you use for your nonprofit’s finances. This might be overwhelming at first, but take a deep breath and give yourself a few weeks/months to comprise all the data (if necessary).

Decide which expenses fall under the umbrella of the different departments of your business, then add them up on a month by month basis. Did you spend more than you raised in previous months? Are you overspending in one area of your organization?

If need be, sit down with each department chair individually to assess the money you spent and the areas in which you could cut costs. This will give you a better idea of the amount you can set for that department’s monthly budget.

Be sure to get input from your board. This budget is a collaborative effort. Accounting for nonprofit organizations can be tricky, so we encourage you to utilize the resources and information we offer! 

3. Plan Your Activities

Nonprofits are all about the activities and events that you both attend and organize for your faithful following. It can lead to some tremendous fundraising opportunities.

However, too many nonprofits design their budget without considering those activities first and foremost. They’re then thrown out of whack when they can’t find the financial room to either attend the event or put on an activity that represents their brand in the right light.

Start by scheduling your activities as far out as possible (preferably a year out). How much money needs to be allocated to those activities? Which ones take priority?

As much as it might hurt, this is a great opportunity to cleanse your schedule of any activities that you aren’t seeing great returns from.

4. Properly Estimate Income

Planning income and expenses for a nonprofit can be challenging, but it isn’t impossible.

First, be sure to list your estimated income if different tiers of risk. This should be prioritized from “least trustworthy” to “most risky”.

For example, say you organize 4 groups for your income sources: group 1, group 2, group 3, and group 4. You might decide that people listed in group 1 are “most trustworthy”, meaning they’re most likely to donate generously and often.

Let the data guide you while you estimate this part of the budget. Put your most frequent sources of funding into group 1, the least frequent in group 4, and so on.

5. Put a Job to Every Dollar

Disclaimer: the job of your budget isn’t to primarily track the money that you spend. It’s to assign a job to every dollar that you raise for your cause.

For example, (for the sake of simple math), say that you budget to receive $1,000 in funds for this upcoming month.

You might consider putting $200 towards donations, $500 towards operations for the month, $200 towards activities and events, then have $100 leftover. This is the wrong way to do it.

You need to budget for all $1,000 in funds that you receive, down to the very last penny. If things change (which they often do), then your budget can be adjusted. Your ability to create a nonprofit operating budget also involves some critical thinking!

What You Can Do Today

Now that you have seen several effective steps that you need to take when building a nonprofit operating budget, it’s time for you to do so the right way.

Be sure to read this article to learn more about how to raise money with virtual events for your nonprofit organization.

And for more inquiries on our ability to be an expert accountant for nonprofits, be sure to reach out by requesting a meeting and we will be happy to discuss our bookkeeping services.

The Different Types of Audit Services and What They Mean For Your Nonprofit

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Are audit services on your mind as a nonprofit organization leader?

Do you run a non-profit and worry about your fiscal fitness? Are your productivity and scalability as efficient as it could be? If you’re concerned about these things for your organization, then you should consider an audit.

As a non-profit, you owe it to your donors to stay as lean and as efficient as possible. And in order to maintain your NPO status, you need to keep good record books. So enlisting outside audit services can be just what you need to be successful.

And don’t worry if the mention of an audit sent a shudder down your spine. We get it, nobody likes the idea of getting audited, but outside of the IRS, an audit can be a valuable tool to assess your current situation and look at the areas that can be improved.

If you’re concerned about how to fully utilize an audit, keep reading. We’ve got you covered on the different types of audit services as well as how they can benefit you and your organization.

Four Different Types of Audit Services

Nobody likes the idea of an audit. However, when it comes to maintaining the financial health of your nonprofit business, audits are necessary. An audit can take less time if you can keep your financial paperwork organized and thoroughly documented.

There are several different types of audits that are done by different people and will give you different outcomes based on your goals. Some audits are done internally while others are external and require an outside point of view.

When many people think of audits they think of accountants scrutinizing your finances. But operational audits are also just as valuable to your organization.

1. Operational

An operational audit will look objectively at the systems and functions of your business. The audit will assess your business’ systems and productivity as well as your available resources. They will then make their recommendations for how these areas can be improved and what additional resources will be necessary to make the changes needed.

Operational audits can look at your systems and processes as well as your various departments; these can include IT, HR, and staffing. Additionally, if you find your organization continually missing your goals and objectives, then an operational audit can shine a light on this. You can learn why these goals weren’t met and what can be changed to start meeting your goals and objectives in the future.

2. Financials

A financial audit will evaluate your current financial situation for your business or nonprofit organizations. After their complete assessment, they will give their recommendations for how you can improve the fiscal health of your charity.

They will look at your accounting records as well as your financial reporting of accounts receivable and payable. So, it is vital to keep good records so you can get an accurate assessment of your financial situation within your nonprofit.

If you want your nonprofit to help as many people as possible, you must be fiscally responsible year after year. If you find your organization continually behind with your accounting then the help of a CPA can benefit your company.

A professional bookkeeper will help you keep your records so that you never again dread another audit. Audits are helpful and beneficial tools for your company. And having good records can make them smooth and seamless which will allow you to learn from them rather than stressing out about getting them the right records for their audit.

3. Internal

An internal audit is usually done by and for the management of your company. This form of assessment gives light to how your company can make improvements and grow in the company years.

Regular internal audits are important to shine lights on possible areas of growth within your company. It doesn’t do your business any good to continue to do things as they’ve always been done when there is a better way of doing it.

In order to truly grow your company and help more people with your non-profit, you need to continually be open to new ways of doing things.

4. External

An external audit is done by a neutral third-party person or group looking at your business or nonprofit from an outside point of view. These audits are just as important as internal audits and will provide your company with a much-needed alternate viewpoint.

Additionally, by conducting an external audit you open your business up to learning about possibly blind spots that you hadn’t noticed before. This external point of view is vital to growing a healthy business so don’t shy away from it. It can be difficult to ask the opinion of someone outside of your organization, but it is imperative to healthy growth.

By bringing in an external CPA to look at your records regularly you can ensure that your charity will be able to help as many people as possible. While it can be difficult to bring in an outside group of people to dive into your finances, this is a vital step to providing valuable insight and reassurances that you’re operating a successful business.

Keeping good records in accounting software is vital to quick and easy audits. Additionally, having a bookkeeper can improve your audit experience. By having a professional help you keep good records in an organized manner can help you to have a better audit.

Bottom Line: Keep Your Business Financially Healthy

As you can see an audit doesn’t have to be scary. In fact, it can be a healthy process to learn where your non-profit can improve over time.

And enlisting the help of external audit services can be a great way to take an objective look at your non-profit. You’ve put your whole heart and soul into helping those who can’t help themselves. Don’t risk everything by not keeping your organization running efficiently and financially responsibly.

So, if you think that an audit would be a good experience for your non-profit, then find a CPA you can trust to come and take an objective look at your company today. With the help of an experienced professional, you can ensure that your non-profit will be around for years to come to help many more people.

So, if you’re looking for help on anything from filling out your Form 990 to updating your bookkeeping, then let’s chat. We offer affordable services and can help you set up your non-profit for success today.