Category

Data

Apr 23
0

How Do You Measure the Impact of Good? Measuring Nonprofit Outcomes

By | Cloud, Data, Nonprofit | No Comments

How do you measure the impact of a nonprofit organization? Many try to measure impact through output metrics: number of people helped, animals saved, members served. But what if we could measure not just how many but how much – as in, how much good was done?

Two organizations, GuideStar and Impact Genome Project, are attempting to do both.

GuideStar recently launched GuideStar Platinum, a platform through which nonprofits can report both outcomes and impact. About 20 percent of the more than 12,000 metrics shared on the GuideStar platform represent impact-based outcomes. The rest measured output.

Impact Genome Project is an initiative curated by Mission Measurement. It aggregates more than 10,000 pieces of research, seeking to identify patterns of what works and by extension, what doesn’t work. This analysis can help nonprofits replicate what works by sharing the outcomes.

Why Bother with Data?

The question many nonprofit managers ask is, “Why bother with data?” Outcomes data has long been the standard method of reporting for many nonprofits. It’s easy to see why. Charting how many members you’ve signed up this year is easier than ascertaining the impact that your programs have made on those members, for example.

Data is now used throughout many industries to quantify success. In medicine, for example, hospitals rely on both outcome data (the number of patients who attend a diabetic symposium or nutrition class) but also rely on impact data (changes in community data such as the number of diabetics diagnosed in a year). Together, these two metrics build a powerful story that demonstrates not just the effort of the nonprofit, but also the effect that effort has on the community.

Donors Want Data

Donors want to see data on how well nonprofits are utilizing their funds, and that’s where the GuideStar program comes into play. GuideStar is well-known in the nonprofit world as a good place for potential donors to research nonprofits.

GuideStar data enables donors to:

  • Research potential nonprofits
  • Read their financial reports
  • Understand how well their money is spent to support and sustain the nonprofit mission
  • Review leaders, salaries, money spent on overhead and more
  • Read answers from the nonprofit on specific initiatives
  • Contact the organization

Nonprofits that provide quantitative as well as qualitative answers to these questions to groups like GuideStar provide transparency to their potential donors. Donors look for metrics they can understand before giving money. They want to see not just quantity, but quality.

Success is measured through many metrics. Donors want to know that their money successfully solves the problems the nonprofit purports to solve through their program. If they are donating money to a bird sanctuary, they want to know not just how many birds were rescued, but overall, what is the impact on the sanctuary, the environment, and the local wildlife.

Data Is the Future of Nonprofits

Although you probably want to roll up your sleeves and get to work helping the audience for your program, there is a need for data, and that need will continue to grow in the future. As donors become pickier about the causes they support, the demand for facts to base nonprofit assertions will grow.

Start tracking the outcomes of your programs now and discuss ways by which you can measure the impact of your programs. You may need time to ramp up your databases, software, or other tools to help you track, measure and report outcomes.

It’s a smart idea to sign up for programs such as GuideStar or the Impact Genome Project now so that you are fully prepared for future donors who wish to investigate your organization’s credentials. The sooner you can provide data, the more attractive you will make your organization to potential donors.

Welter Consulting

Welter Consulting offers a bridge to solutions that work for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.

Apr 09
0

Finding Technology Resources for Your Nonprofit Organization

By | Cloud, Data, Nonprofit, Technology | No Comments

It would be nice to have a fairy godmother who could wave her magic wand and provide your nonprofit with all the technology bells, whistles, sparkles and licenses it needs to be up-to-date. The reality is, however, that each nonprofit must find a way to find its tech upgrades on its own. That comes with challenges.

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There are solutions for nonprofit organizations who need to update their technology, but no solution is a perfect fit for every organization. You’ll need to examine the solutions, weigh the pros and cons, and come up with the technology plan that’s right for your group.

Consider All Costs

“Technology” is an umbrella term that encompasses hardware, software, and connectivity. It may also include various devices used by your employees such as laptops, cell phones, tablets and more.

Before looking for technology resources, develop a list that includes all of your organization’s technology needs. Start by listing the employees, their jobs, and the resources each person needs to successfully complete their job.

Costs may include:

  • Laptops
  • Desktop units
  • Monitors
  • Mouse and keyboard
  • Tablets
  • Smartphones
  • Business productivity software such as spreadsheets, word processing, presentation software, etc.
  • Cloud storage or networking
  • Graphic design software
  • Human resources software
  • CRM or donor relationship management software
  • Grant tracking software
  • Accounting and financial software
  • Modem or internet connectivity
  • Copiers, scanners, fax machines, printers, etc.

Some of these items may be available for little or no cost. Google Documents, for example, provides cloud-based word processing, spreadsheets, and presentation software that may be fine for your basic business needs. Small or startup nonprofits have different needs than a 100-person nonprofit operating in several states or countries.

Keep in mind that licenses for software may be based on how many users are on the system, so as your nonprofit grows, you may need to add extra licenses. You should include these costs into your estimates.

Office equipment today combines printing, scanners, fax machines and copiers all in one small unit. Such a unit may suffice for your office needs in the short-term and can be purchased new for a modest fee.

Nearly New or Brand New?

Nonprofits may find that they can benefit from local corporations who wish to donate their computer equipment to the organization. Before accepting such equipment, ascertain whether the donated equipment is compatible with licenses and software that you currently own. Otherwise, you may spend considerable time and effort finding ways to adapt software to equipment.

Before accepting used equipment, feel free to stipulate to the company donating it that you’d like to look at it first. You don’t want a truck pulling up at your doorstep filled with circa 1990 monitors; they’re only good for doorstops at this point in time. Examine the equipment and if it doesn’t meet your needs, pass on it.

New equipment can be purchased at a discount online. TechSoup offers discounted equipment and  many bargains . Even traditional retailers and office supply stores provide coupons, discounts and sales. End of year and back to school times are great opportunities to take advantage of these sales.

Big Projects? Think Sponsorships

 Lastly, consider asking your best donors to sponsor large-scale tech projects. Consider a capital campaign with specific donation amounts suggested in the campaign and linking those amounts to what the donation will purchase.

“Your donation of $100 will buy a new copier for our office” ,for example, allows the potential donor to visualize how they help your organization. This is a time-tested way of encouraging donations for specific campaigns.

Nonprofits need technology. Paying for it or finding the funds for it may be challenging, but there are many creative ways to help you harness the power of technology for your benefit with a little thought, care and planning.

Welter Consulting, Your Bridge to Solutions

Navigating the many options available to you for technology resources can be tricky. There’s always something else tugging at you for attention. Where do you start? How do you decide?

Welter Consulting offers a bridge to solutions that work for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.

Mar 19
0

Key Takeaways from the Journal of Accountancy’s 6th Annual Roundtable

By | Data, MIP Fund Accounting, Nonprofit, Technology, Training | No Comments

In this year’s 6th annual roundtable, sponsored by the Journal of Accountancy, some familiar themes emerged: the importance of cloud computing, improving technology training for all staff, and cybersecurity. But among the topics discussed during the roundtable, new trends emerged that are worth noting.

Mid-Sized Accounting Firms Struggle with Technology

According to the experts participating in the roundtable, mid-sized accounting firms lag behind both small and large-sized firms in many areas of technology: Implementation, maintenance, and strategy, which can create problems.

For example, lagging behind in cybersecurity puts your entire IT infrastructure at risk. Cyber attacks aren’t limited to big firms; mid-sized and small-sized nonprofits may be at greater risk since criminals view them as low-hanging fruit and quick to capitulate and succumb to things like ransomware. They may also have no dedicated staff to cybersecurity, which means less attention is paid to it and criminals may have an easier time accessing critical data, personal information they can resell, and other information.

Cloud Computing

Cloud computing may bridge the gap mid-sized firms experience in the technology world. Because cloud computing services are set up through the internet, they are accessible to all sizes of companies. They also offer higher security since cloud-based companies providing software and services invest in tighter security to protect multiple clients.

Software delivered through the cloud can also be less costly than previously available versions that were seat-based. Cloud software, shared among multiple mid-sized firms, spreads the cost out so that it is more affordable. Better computing power at a lower cost makes it an obtainable goal for many mid-sized companies.

Technology Improvements Needed

Throughout the roundtable discussion, the need for overall improvement in the use, adoption, and understanding of technology was apparent. Many nonprofit organizations feel overwhelmed by the sheer volume of technology solutions they are expected to learn and apply.

Partnering with a strong consulting firm who can teach, advise, and guide you through the process of adopting tighter cybersecurity practices and cloud-based software solutions may be a good path to follow. Small to mid-sized nonprofits do not have the resources or time to invest in cybersecurity, but they can partner with a company or consultant who is an expert in this area to help them. Understanding your nonprofit’s strengths and partnering with others to shore up your weaknesses is a smart way to proceed.

Simple Changes that Reap Big Results

A few simple changes suggested by the experts that can produce big results include:

  • Encrypting emails: Encryption can protect sensitive information and provide an additional layer of security with an easy fix.
  • Training: Training staff how to screen for phishing schemes, how to craft strong passwords, and other simple cybersecurity measures needn’t be a huge undertaking, but even a little training can go a long way to improve cybersecurity.
  • Updating hardware: Many experts talk about updating software, but how about updating the hardware your staff uses? Bigger monitors may sound like a strange thing to focus on, but they can make workstations more comfortable and prevent mistakes by simply enlarging information on screen.

There’s a lot to focus on when it comes to technology for your nonprofit association. It can feel overwhelming to tackle everything on your technology to do list. Finding and working with a consulting partner may help you move into a better, more comfortable place when it comes to technology.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.

 

Mar 05
0

Financial Audits Improve Nonprofit Operations

By | Abila, Accounting, Audit, Data, MIP Fund Accounting, Nonprofit | No Comments

Are you getting the most from your nonprofit’s annual audit? Financial audits aren’t just a necessary exercise to meet the requirements for keeping your nonprofit organization’s status or to please donors and board members. They provide valuable, useful information that can help you improve many areas of your organization.

A study conducted by Deloitte and reprinted in the Journal of Accountancy surveyed 300 executives and 100 members of audit committees nationwide. Their findings point to the usefulness of audits as a business evaluation tool.

  • 79% of executives and 91% of audit committee members agree that financial audits help them identify opportunities to improve business performance;
  • 46% of executives and 62% of the audit committee members believe that audits helped them identify business issues that they might have missed without the audit information;
  • Companies that review and utilize audit information achieved strong growth over a three to five year period (as noted by self-observation.)

Clearly, there is value not just in the audit process itself but in the use of the audit findings for analysis of current operations,

Quality Counts When It Comes to Choosing an Auditor

Throughout the survey, respondents cited the quality of the audit as a key element of a useful business improvement tool later on. A good-quality audit starts with selecting an auditing firm with experience helping nonprofits both through the auditing process and to improve later on.

Audits can provide more than information into the company’s financial state. They can provide market and industry comparisons and analysis. Process analysis, identification of gaps and potential for improvement can also be part of the audit findings. Each of these elements provides an item that can be used as a springboard for action later.

When selecting an auditing firm, look for one with experience working in the nonprofit world. It may also be helpful to find a company that provides more than auditing services. Business consulting, nonprofit consulting, and other related services offered by the auditors mean that they can infuse additional insights into the audit process and continue working with your nonprofit after the audit to implement the changes that you wish to make.

Data and Analytics

Another new area in which nonprofits are finding useful information is the data and analytics that are derived from the audit. Many aspects of a nonprofit’s business can be analyzed. Examining items such as expenses like leases, long-term contracts and expenditures can reveal places in which money can be saved. Long-term donor patterns, grant analysis, and areas where the nonprofit’s work has shifted over the years may also be revealed from an analysis of data patterns found within the audit and the nonprofit’s financial statements.

It takes a special auditor to be able to analyze and detect such patterns. If you aren’t looking for them or for places from which you can derive such information, it can easily be overlooked. Again, choosing an auditor with the insight and experience in the nonprofit world to assist you with your business improvements it the key to success.

Are You Using Your Audit Information?

Are you using all of the information that can be obtained from your most recent audit? According to the previously mentioned Deloitte study, about 35% of the nonprofits responding to the study rarely or never use the information obtained through the audit for improvement. Talk about a missed opportunity!

Why aren’t they using the information? Approximately 48% percent of executives surveyed state that they do not have a process in place to use the information post-audit.

Therein lies the key – process. Develop a process now to use the information obtained from this year’s audit to improve your nonprofit. Begin now to find an auditor who can partner with you to develop a series of action items for follow up. Put in place the teams, groups, committees or leaders within your company who will be accountable for following up on the audit information.

By using these techniques, you can use the annual audit as both a financial document and the start of process improvement.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.