All Posts By

Team Welter

Mar 25
0

9 Steps to Choose the Right Software for Your Nonprofit Organization

By | Nonprofit | No Comments

You’re fed up. Your nonprofit software doesn’t work the way it should. You’re cobbling together reports in Excel that should be run directly from the organization’s current software—if it actually worked right. What should take one hour to accomplish takes three because the software system is so old it practically creaks when it runs.

Sounds familiar? You are at the point where it’s time to search for new software for your nonprofit organization. The search, however, feels like a huge mountain you must climb. What if you make a mistake and pick the wrong software?

Others have climbed that mountain before you and have marked a clear trail for you to follow. We have put together the following list of tips for choosing the best nonprofit software for your needs based upon the latest advice from others in the nonprofit world. It is a tried-and-true formula that will help you select the right software to save you time and effort.

Getting Started: The Basic Software Selection Steps

It’s time to embark on your software selection process when the benefits of change outweigh the costs of continuing to do business as usual. But do not take the easiest path and simply upgrade your current software package to the latest edition. Do some digging and investigate your options. Perhaps the current software is the right choice, but it is likely that there are more options available for you to explore.

Step 1: Find a champion

The first step is to find an internal champion, or project sponsor, who will back you up and act as a liaison to senior management for you. Such a person can help you frame the requirements document with the overarching needs of the organization in mind and ensure you haven’t forgotten anything during the early stages of the project. They may also be able to help you navigate through any budgetary issues and find additional funding for the project, if necessary.

Step 2: Begin a needs assessment

A needs assessment is, as the name suggests, a survey of the needs of the organization. The tricky part of any needs assessment is making sure you have surveyed all areas of the organization and included the requirements of various stakeholder groups.

Step 3: Create a project team and plan

The key to building an effective project team is to ask people from each area of the organization to participate in the team. A representative from finance, accounting, operations, marketing, and program development, as well as any other core groups and departments, should be part of the project team.

One trick to establishing an effective project team is to set a weekly meeting to work together on the search for the new software package. During this time together, the team can develop the software project plan and discuss any concerns or considerations as a group.

Step 4: Interview key users

In addition to building a team of representatives from various departments, create a list of key software users within the organization. Interview each potential user to find out what they like about the current software, what they dislike, and any special needs they may have.

Step 5: Build a gap analysis

A gap analysis takes the findings from the interviews and compares the present software to the stated needs of the key users. The gap between the existing software and stated needs provides a guideline for what to look for in the new package.

Step 6: Search for potential vendors

You can search for potential nonprofit vendors online or contact a consulting firm such as Welter Consulting. We can help you find the right software for your needs. You can also ask other nonprofit organizations for their recommendations, read reviews in nonprofit journals, or find potential vendors to interview through trade shows and online conferences.

Step 7: Request for proposal

The request for proposal distills the team’s interviews and gap analysis into a formal document that can be submitted to multiple vendors with a deadline for response. The resulting proposals should address the needs and requirements outlined in the RFP. Bids can be submitted with the RFP response or later, depending on the vendor and the organization. Some teams conduct a two-level search, receiving proposed solutions first, winnowing the proposals down to a handful, then requesting bids based on clarifying questions to the potential vendors. 

Step 8: Vendor demonstration

Once you have a small selection of possible proposals to choose from, schedule meetings with potential vendors. Ask for a demonstration of the software. Confirm how the vendor conducts training and the support available post-implementation.

Step 9: Select the software

After completing this thorough process and conducting full due diligence, it’s time for the final selection. Be sure to take full advantage of training and support offered by the software vendor and address any questions or hiccups in the process as soon as they arise.

Welter Consulting

Although there’s no one “best” software for all nonprofit organizations, working with a professional nonprofit consulting firm such as Welter Consulting can help you shorten the time it takes to find the right software. We’d be happy to work with you to find your “happy medium” and transition to your new nonprofit software. Please contact Welter Consulting at 206-605-3113 for more information.

Mar 16
0

Working from Home and Managing Your New Work-Life Balance

By | Professional Development | No Comments

Working from home may feel like a dream come true—or a nightmare unfolding. It all depends on your perspective.

For the past year, ever since most states announced mandatory stay-at-home orders, many accountants have been working from home. And while that’s not necessarily a bad thing in and of itself, it may be compounding our stress levels.

A 2017 report from the United Nations indicates that people who work from home report higher levels of stress than people who commute to an external office every day. It’s not the home environment that increases stress, but the interruptions, lack of specific business hours and frequent use of mobile devices that is adding layers of stress to the already pandemic-stressed-out population.

While we may still be many months away from a full return to business as usual, there are many techniques to reduce stress and avoid burnout that you can try … from the comfort of your home.

Establish Clear Work and Home Boundaries

One of the biggest areas of added stress for accountants working from home is the blurring or blending of “home” versus “work” time. When commuting to the office every day, there is a clear distinction between work and home hours, with the time to commute the transition period between each. Move work to your kitchen table and suddenly there is no transition between work and making dinner, or helping kids with their homework, or any of the other homemaking tasks waiting for you.

If having a home office (with a door that closes against noises and distractions) isn’t possible for you right now, establishing clear and definite “work” and “home” hours is necessary. Create your own “after work” ritual. One CPA shuts her laptop each night and says aloud, “Mission accomplished.” It sounds silly, but this is her psychological cue that work is done for the day and it’s time to transition back into her off-duty self as a wife, mother, and avid yoga enthusiast.

Stagger Video Conferencing Hours

Zoom fatigue is real. Whether it’s everyone’s new favorite video conferencing tool or one of the many options available, feeling exhausted and drained after too many video conferences in one day is reality. Humans are hardwired to pick up a multitude of social cues, from facial expressions to posture, that may be lost or misunderstood on a small video screen. Add that to feeling like you’re on a stage or a movie set every day with the cameras rolling and it’s easy to see how video conferencing fatigue is more than a myth—it’s reality.

To avoid feeling frazzled and burned out from too many video chats, leave plenty of time between each call. Get up and walk around your house or go outside if you have a garden or place to get away from your computer for a few minutes. Note how many calls per day feels comfortable for you and seek to balance urgent requests against the need for your own time away from video conferencing. It may not always be possible, but at least knowing why you feel so exhausted after four hours of back-to-back video meetings can help.

Find Your Happy Place

Lastly, find your own happy place. It may be in your rec room listening to your favorite music or in the kitchen baking an apple pie, but there is some place or activity for you that is very freeing and relaxing. That’s finding your happy place. And while it may be limited right now since we cannot gather safely indoors with many people, an alternative might exist that lets you shed some of that stress and feel like your old self again.

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.

 

Feb 23
0

Post-COVID Nonprofit Operations

By | COVID-19, Nonprofit | No Comments

Systems and services nationwide are still struggling with the aftermath of the pandemic. This goes for nonprofits as well. Although many have risen to the challenges of continuing to serve their communities amid shrinking donations, new health mandates, and rising demand for their services, the pandemic has exposed many fragile areas in society. Nonprofits were able to help these areas, but now, they may no longer be able to do so.

New models, methods, and approaches are needed for the post-pandemic nonprofit world as exemplified by these two examples. The creative approach that nonprofits bring to the many problems uncovered by the pandemic will help them succeed in the future.

Systems Built for a Different Era

Many of the assumptions and systems upon which nonprofits were founded were based on norms and attitudes from a different time and place.

For example, the current model of community food banks which collect food at central distribution points and distribute it to queues of people needed to change during the pandemic. Such a model evolved during previous eras in which people lived closely together in cities. Now, it is just as likely that hunger exists behind suburban front doors or in rural enclaves. It’s difficult for some to travel to a food bank, and when people are asked to curtail their time out of the home to prevent the spread of infection, it is inappropriate to ask them to line up with strangers just to get food to feed their families.

Meanwhile, the wealthy who can afford meal delivery simply pick up the phone and dial for a pizza, Chinese or Thai takeout, or whatever they fancy. Families can order groceries online and have them delivered to their doorstep to avoid long lines at the supermarket.

Donations of food may be down as more people feel the pinch of joblessness or restricted income. According to one report, prior to the pandemic, 1 in 6 Americans needed supplemental food sources to stave off hunger. Now, that number is closer to 1 in 5.

“Get in line” isn’t an appropriate or helpful response to needy people during a pandemic. A creative response is called for to help fill the gap between the hungry and the resources available to them.

Exposing the Digital Divide

It’s not just nonprofit systems built for a different time that struggle during the pandemic. Expectations must shift around services, too.

Prior to the pandemic, many school children used the internet only in the classroom or at the library where free computers and Wi-Fi provided them with the same access as their wealthier classmates.

Now, however, with many schools switching to an all-online model and libraries closed to the public, children who lack broadband access aren’t getting the education they need. Nonprofits are being asked by their communities how they can bridge the ever-widening gap in these children’s education while some communities fail to address the root problem of the digital divide.

Solutions for Creative Nonprofits

It’s not all doom and gloom. Although the pressure on nonprofits to fill these ever-widening gaps is great, many are coming up with creative ways to serve their constituents.

Such creative solutions include:

  1. Partnerships with for-profit companies to bring resources to the communities. Food delivery services, for example, can be asked to take free food to the needy if they’re already heading into specific neighborhoods.
  2. Collaboration with community-based organizations that already have deep roots in the most underserved communities can help bridge many gaps. These organizations may know of resources, people, and places that can be tapped to help their specific communities that nonprofits outside of the community do not understand. Working collaboratively, both organizations can achieve more together than they can alone.
  3. Developing new methods, models, and delivery services. This may be the time for out-of-the-box thinking, testing models from the for-profit world, or seeking the advice of other organizations nationwide as to what worked and didn’t for them as they responded to local needs during the pandemic.

Nonprofits face a big challenge post-pandemic. But they are uniquely poised to meet these challenges through creative thinking, flexible approaches, and good stewardship of existing resources.

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.

Feb 16
0

Is “Overhead” a Dirty Word in Nonprofit Marketing?

By | Nonprofit | No Comments

Perhaps donors have inquired about your organization’s “overhead ratio.” Or, you’ve been asked by a prominent donor to confirm why your “overhead is so high.” What’s with the emphasis on overhead? Is it healthy? What, if anything, can nonprofits do to change the misconceptions people have about overhead?

The Myths About Overhead and Overhead Ratios

GuideStar, Charity Navigator, and other sites use some form of overhead or the overhead ratio to assess a nonprofit’s efficiency. But is this a fair number to use?

Since the aftermath of Hurricane Katrina, when journalists investigated the Red Cross’ finances in light of its handling of the humanitarian relief efforts, the term “overhead” has served as a red warning light instead of a natural descriptor of a particular type of expense a nonprofit naturally uses.

Many see overhead and the overhead ratio as synonymous with efficiencies. A nonprofit with low overhead costs, for example, may be viewed as thrifty, efficient, and better able to serve its constituents.

In truth, overhead may have little or nothing to do with efficiency. A nonprofit located in a large city may have greater overhead expenses due to higher rents, higher salaries needed to stay competitive in the local job market, higher utilities, and much more. A city-based nonprofit may need to remain in its present location to serve its constituents, so moving to a location with lower overhead costs is out of the question. In this small example, such a nonprofit may show higher overhead costs than its rural counterpart, but it may be just as effective, if not more so, at fulfilling its mission than a similar organization with lower overhead.

What Can Nonprofits Do to Combat the Misconceptions of Overhead?

Researchers H. Qu and J. Levine Daniel conducted a study examining the use of the term “overhead” among nonprofits. What they discovered was fascinating. If nonprofits simply redact the term overhead, but use the same descriptive phrasing to truthfully and accurately identify the expenses allocated to overhead, the negative connotations expressed by the public disappear. Framing the conversation around overhead by addressing the need for such expenses is equally as important to ensuring transparency and understanding among donors.

Nonprofits can, for example, help donors understand the need for overhead expenses. Clarifying their reasons for bearing higher costs is very helpful. For example:

  • When subjects in Qu & Daniel’s study were asked to define overhead, few among the general public could do so with any degree of accuracy. The word itself had become so negatively charged with meaning that it lost its original objective meaning. Therefore, providing a clearly defined meaning of overhead in financial and marketing statements, without using the specific term, may achieve the same goal of transparent communications without the negative connotation.
  • High nonprofit salaries are often perceived by the public as “greed” on the part of executives. But in order to attract and retain top talent, nonprofits must offer competitive salaries to woo executives away from jobs in the for-profit sector. Donors certainly want qualified leaders at the helm of a nonprofit, and the best leaders will help the organization achieve its mission and vision more effectively. Stating this argument in a positive light can help nonprofits frame the salary and expense category as part of overhead costs.
  • Explaining overhead as an investment in long-term, sustainable growth, may also alleviate donors’ discomfort with the term.

Nonprofits need unrestricted overhead in order to transact business and continue operations. With the public still feeling the negative taint of the term, however, it is wise to find alternative ways to describe the need.

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.