Nonprofit Accounting Practices that Help your Organization Thrive

nonprofit accountingOverlooking These Best Practices May Hurt Growth

When the concept of nonprofit organizations first came about, most organizations simply asked for charitable donations, appealing to the public’s sense of duty for the less fortunate. Today, it takes more than asking to obtain the revenue stream a nonprofit needs to achieve its mission. Donations, fundraising, and good stewardship of finances are all important factors that help nonprofits thrive and conduct the good works that they do.

As you consider all of the business practices that go into operating your nonprofit organization, consider how you manage your organization’s finances. There are certain best practices, according to the Journal of Accountancy, that can help your nonprofit thrive.

Good Financial Management

If you’re always running in crisis mode, sending out letters begging for donations because your cash flow management isn’t up to par, donors may be turned off and take their gifts elsewhere. Financial strength and stability helps you achieve your organization’s mission, and you build strength and stability by having both a cash flow plan and a management system in place to handle income and expenses sensibly.

Donor Management Plans

Make sure that you have a plan in place for fundraising. Don’t just rely upon the good will of others, but actively seek donations through campaigns, events and other efforts.

Fundraising costs money. Although it would be wonderful if donors would keep you in mind at all times, it’s highly unlikely. Instead, they need reminder calls, emails, mailings and other fundraising ideas. All of these cost money.  Set aside a reasonable budget for fundraising activities so that you can manage donors and income.

Marketing Plans

Marketing goes hand-in-hand with fundraising. Instead of selling tangible goods, your marketing department sells an idea, concept or mission to the public. If the public “buys into” it, they will donate. Such activities also raise awareness for your organization and its work—two valuable assets.

Make sure that your organization has a solid marketing plan in place. The marketing plan may be a partner to your fundraising plan or separate, but the two should be in place to work together to raise awareness, donations, and information about your nonprofit’s mission.

Technology

 Nonprofit accounting software, donor and member management tools, and HR systems all make a nonprofit more efficient. Technology upgrades may include new software, switching to cloud-based systems, or adding modules to existing software.

Another aspect of technology enhancements is security upgrades. Donors need to be certain that their personal and financial information is kept secure.

Data can also be an important aspect of nonprofit management. Knowing where your work is taking place and how effective it’s been are only part of the picture. Finance, accounting, fundraising and marketing data are all important pieces in the technology puzzle.

One Solution Helps with Many Tasks: Abila Nonprofit Online Suite

Putting into place these nonprofit best practices, as well as others, can be a time-consuming task. Abila Online Suite offers a robust cloud-based solution that can help you manage your marketing, fundraising, and accounting work all in one.

Abila Nonprofit Online Suite offers remote access to secure, cloud-based data. Instead of investing a lot of time and money into your IT infrastructure, you can continue to advance your organization’s mission. Additional modules enable you to integrate human resources functions and other operational tasks into one system.

All nonprofit organizations are cost-conscious. Abila also offers the Abila Nonprofit Online Bundle to save you even more money. Bundle accounting, fundraising, grant management and other tools into one simple solution and obtain cost savings that will make your accountant smile.

For more information on nonprofit accounting software that can help you make your organization more effective and responsive, contact RBP Methods. We’re help nonprofits navigate the world of technology and finance. Contact RBP Methods at 503-648-9051.