As you head into 2016 here are a few key nonprofit accounting trends to keep in mind. According to Abila, the leading provider of software and services to nonprofits there will be a focus on growth versus sustainability; building strong, maintainable teams; collaborating between departments; partnering with for-profit companies and looking for private investment; and concentrating on fraud and data security.
Focus on Growth (vs. Sustainability)
Growth affects all aspects of an organization from budgeting, decision making to strategic thinking. With more than 70 percent of nonprofit organizations predicting growth in the next three years, this is where their focus must shift. This change in focus will impact the organizations programs, personnel and technology.
Nonprofit accounting workforce transforming
According to Wolters KluwerCCH Preparedness Survey, 75 percent of members of the American Institute of Certified Public Accountants (AICPA) will be eligible to retire in four years (by 2020). With this many seasoned employees leaving nonprofits must focus on their succession plan. This plan should include preparing millennial as they enter the work force by offering guidance and smooth transition.
Collaboration is key
Collaboration is Key: Collaboration between departments, especially between fundraising and accounting departments, will be essential in 2016 to help organizations get beyond day-to-day, tactical thinking into a more strategic frame of mind to ensure growth and stability for years. Tighter collaboration between departments also necessitates tighter integration between technology and software systems, particularly fundraising and fund accounting.
Collaboration between non-profit and for-profits
Partnerships are being forged between for-profit and nonprofit organizations. These partnerships are mutually beneficial. They help nonprofits gain resources while helping for-profits to further social causes and become attached to well-known nonprofits.
One such program that may be Non-profit housing. For profits can invest in tax credits to help fund non-profits. Then money can build complexes and affordable housing while offsetting costs for the for profits
Fraud and Data Security
Fraud and data security remain top of mind moving into 2016. As organizations grow, they will continue to focus on ensuring internal controls are in place in order to protect the organization’s assets. Organizations need to look at their investments as far as technology and infrastructure goes.
Here at RBP Methods we desire to help nonprofits achieve their financial goals by supporting their accounting and finance needs. Contact us to learn more about how we might be able to help you.