Tag Archive for: technology

A Modern Nonprofit Podcast: How Nonprofits can Start Investing in Technology

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On today’s episode, Tosha is joined by the Executive Fundraising Coach at Auxilia, Paul Morris. Auxilia is a technology platform created to help community driven nonprofit organizations with donor outreach, engagement, and retention. 

Paul and Tosha collaborate on a discussion about nonprofits investing in technology. There is almost an unwritten fear or stigma associated with nonprofits and using dollars to invest in technology. Sometimes, this can seem counterintuitive to achieving its mission, when in today’s world it is necessary. 

technology

Tune in as Paul and Tosha breakdown some whys behind technology investment in nonprofits. 

Why Don’t 501c3’s Invest in Technology?

Paul believes there are 2 core reasons why more nonprofits aren’t investing in advancing technology within their business model. 

  1. An investment into intangible assets 
  2. Under resourced 

From Paul’s experience it begins with the fear of funders and/or board members critiquing the businesses’ decision to invest here. Many nonprofits may hear that spending dollars on technology isn’t as effective as throwing those same dollars towards a specific program. The misconception is that the labor it takes to do something that can ultimately be automated will actually create future efficiencies within the organization. Technology is a tool that can free people up to spend more time on those programs that need a little extra love, instead of spending time on mundane tasks that deserve to be automated and hands free. 

Sure, an investment like this might take a little more effort up front, but it opens so many more opportunities on the back end. This is what Paul refers to as a wise or smart investment. These can actually help propel the mission forward. Unfortunately not all donors or board members may understand this, which makes it important for the nonprofit leader to thoroughly explain the value of a move like this! 

Secondly, many nonprofits are under-resourced. This is the more commonly understood reason. Similar to the first, many programs and issues within the nonprofit typically are a higher priority on the to-do list. So, technology tends to be the first item to go. Ultimately, Paul’s experience tells us that within the nonprofit sector, technology currently does not rank high for dollar spends. There aren’t many opportunities for technology grants and funders like to give towards the cause, so making a case for spending dollars on technology advancements can be a hard, uphill battle. 

 

Deciding the Right Tech Stack for Your Business 

Although not mentioned, but completely understood; technology can be intimidating! When it comes to choosing the right technology to help your business become more efficient, where does one even begin? 

Tosha shares how she decides how to sift through the never ending technology options. First and foremost, she likes to identify what the business needs, specifically. Where is the gap and what do they not currently have? 

Once she defines what this could be, she then works through the current providers already offering solutions to her business. Maybe her payroll provider offers a benefit administration solution. Now she doesn’t have to look out for the administrative solution on top of what she already pays the payroll provider. 

Before long, having all the solutions under different providers can start to look like streaming services on a personal bank account. Look at it this way, sometimes one streaming service is all you need to watch your favorite TV shows and movies. The same can be true for tech solutions within a business. Consolidation can be a great way to reduce expenses and keep things efficient. Paul even adds that using a current provider for a new solution can be leveraged for savings. As a loyal customer, a discount might be available for 2 services opposed to one. 

Auxilia is also a valuable resource for this type of conversation. Paul and his team will coach businesses so that they can provide your business with personalized guidance and suggestions that help for more successful fundraising. They are the experts and can help your business find the right road to travel. Read more about Auxilia here. 

Starting the Conversation 

Tosha wraps up the conversation by asking Paul how to get the board engaged in making technology advancements or at the least starting the conversation. 

Primarily, it’s always best to start early. There are plenty of ways to justify making this sort of move, but it’s crucial to be prepared and proactive about even proposing this. If it hasn’t been made a part of the annual planning or strategic vision, this could be a great place to start. The idea of making things more efficient or better delivering program initiatives tends to do well with the board. It’s making sure to express the value of the change and the impact it can make. 

Paul mentions a group called NTEN which is focused on advancing technology as a toll within the nonprofit space. 

Another idea introduced by Paul is to establish a task force. Here, it’s important to be very clear in what the purpose of the task force is. In his opinion, people aren’t empowered by serving on a committee, but they are empowered by serving on a task force. 

When the vision is clear, the leader can begin involving outside stakeholders or board members who have experience in technology to help eliminate guesses. A leader who has the courage to say, ‘this is what we’re doing because it’s good for the organization,’ is a leader people want to follow. 

On the other hand, it’s also essential for boards to trust the body they are governing. People feel empowered when they are trusted to do what’s best for the organization. They feel like a part of the solution that can propel the organization forward. 

Paul encourages the listeners to trust that the team is making good decisions for the benefit of the organization, and to let go of the need to control. 

Technology

Connect with Paul on LinkedIn or through Auxilia. He is one of 5 coaches with a combined century of experience. Whether it’s development needs within the business, or even validation Auxilia has the expertise you may be looking for. 

Please be sure to engage with the interviews as well. Whether you enjoy listening to it, reading about it, or watching us on YouTube, make sure you review, share, and engage with A Modern Nonprofit Podcast. You can find Tosha and the Charity CFO team on Youtube or our website, thecharitycfo.com!

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.

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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.

nonprofit-operations-manager-budgeting

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.

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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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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.

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.