All Posts By

Team Welter

Mar 10
0

Put Dollars Where They Count When It Comes to Software Subscription Fees

By | Fundraising Software | No Comments

Software subscription fees can sneak up on you. What seems like a small purchase at one time adds up as monthly charges continue to ding your credit card or bank account. Those recurring charges can slowly and insidiously drain your resources and should be avoided, especially if you don’t use the software frequently,

Review Software Needs Quarterly

It’s a good idea to review software charges quarterly and check with your staff to see who is using which software package. While it may be clear to all that an annual subscription to Microsoft Office is necessary for business, you may not know what other software is being used. Have a team member review subscriptions to ensure that you don’t accidentally cut off something that’s needed by a department or group.

Fundraising Software: a Smart Investment

One area where you won’t want to skimp is fundraising software. Although fundraising software came with a hefty price tag years ago, there are several platforms available that offer plenty of functionality at a low cost.

What should you look for when shopping for fundraising software? To get the most for your money, look for the following features:

  • No contract: Contracts work in favor of the software owner, not the end user. Even though they may look good on the surface by locking in a rate or special features, your organization’s needs may change. Instead of long-term contracts, look for cancel at any time or at least a monthly contract that enables you to leave without cost with notice.
  • No or low fees: Some software offers a free trial and free or low cost fees for nonprofits. Others enable nonprofits to have up to a certain number of users before fees are applied. Read the fine print and look for software with low or no transaction fees.
  • Payment processing with standard rates: Review the fees the system charges for payment processing and compare them to standard rates. Make sure that the software vendor isn’t overcharging for payment processing to make up for giving away the software subscription ‘free.’

Best Features in Fundraising Software

Not all fundraising software is created equal. Each offers unique features and benefits. The right software for your organization is the one that solves the problems your team faces when it comes to managing fundraising activities.

When reviewing fundraising software, look for the following features:

  • Easy integration: New software such as fundraising software should integrate easily with your existing software. If it doesn’t, you’ll end up spending precious resources to make it work. For example, manual data entry gets tiresome quickly if you have to import everything from the fundraising system into the accounting system by hand. Check to make sure that any new fundraising software under consideration integrates easily with your existing platform. If it doesn’t, what might you need to do to make it work? What are the costs, opportunities, and benefits of using it over another platform that does integrate easily?
  • Customization: Can you customize messages to constituent groups? This is important because customizing messages can increase donation and gift size. The more you can speak directly to the interests and needs of groups on your list, the greater the potential opportunity. “Canned” responses that cannot be customized limit your fundraising abilities.
  • Tracking potential: Does the software enable you to track potential donations or just incoming ones? Those that have layered tracking, giving you different views of where potential donations stand in the pipeline, offer greater flexibility.
  • Planning capacity: Lastly, does the fundraising software allow for planning events and donations?

Not all software is needed or needed all the time. Fundraising software contributes directly to an organization’s cashflow and, as such, should be considered an important technology to keep. That doesn’t mean that you can afford to waste money on it, however. Reviewing your current package and considering a new one should be a routine step to maintaining the right fundraising software for your organization’s needs.

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 03
0

Do You Have D & O? What You Need to Know About Directors and Officers Liability Insurance

By | Insurance | No Comments

Do you have D & O? That’s directors and officers liability insurance, not some unpleasant medical condition. In all seriousness, D & O is insurance that nonprofits know they need but rarely understand.

There’s good reason for that. According to some insurance industry experts, many D & O policies require dozens of pages, sometimes up to 90 pages, to explain what they cover and what they don’t cover.

While we can’t delve into what your nonprofit’s specific D & O policy covers, we can review the basics with you here and provide you with some information on what D & O insurance is, what it covers, why you need it, and how to ensure you have adequate coverage for your nonprofit.

What Is Directors and Officers Liability Insurance?

Nonprofits typically have both directors and officers leading and guiding the organization. Those in leadership positions should have the knowledge, experience, skills to make sound judgement calls—but that isn’t always the case. And, of course, even the smartest and best people make mistakes.

The litigious environment in which companies, including nonprofits, operate today opens them up to lawsuits in which claims of negligence can lead to expensive judgments. Board members and officers may be unaware of all of the laws governing their conduct and how to avoid mistakes. The results can be devastating both to them personally and to the nonprofits they serve.

What Does It Cover?

There’s no one right answer to this question. Some policies cover financial impropriety while others cover only negligence. Each policy covers different things and policies can be customized for a specific nonprofit. For example, a nonprofit providing medical services may have different coverage than a food panty or a homeless shelter, based upon the risks taken by the officers and directors when making decisions.

Generally speaking, most directors and officers liability policies cover:

  • The personal assets of directors and officers and their spouses if they are sued for actions taken during the course of their duties
  • Legal fees, settlements, and other costs associated with suits in which directors and officers are involved

Directors and officers may be held responsible for:

  • Misuse of company funds or breach of financial duty that leads to losses or bankruptcy
  • Misrepresentation of company assets
  • Fraud
  • Failure to comply with workplace laws
  • Intellectual property theft
  • Improper actions or lack of corporate governance

Does Your Nonprofit Have Enough Coverage?

Most nonprofits do not maintain adequate coverage. Lawsuits have been increasing over the past several years, especially class action suits, which can leave an organization vulnerable.

If your organization failed to conduct a thorough due diligence on its new board members, officers, and directors, it may already have a potential problem on its hand. Many nonprofits rush to fill vacant board seats and struggle to find willing candidates. Those they do find may lack the experience to avoid costly errors.

It is a smart idea to meet annually with your insurance broker to discuss your current coverage. Your broker can advise you on whether or not increasing coverage is warranted and what the potential risks might be that you need to protect against for your nonprofit. Each organization is different, and each requires varying levels of coverage.

Custom Coverage Is Available

Lastly, know that custom coverage is also available. In fact, many brokers recommend custom coverage so that the nonprofit is adequately protected against its’ unique risks. Since there are so many variables that lead to lawsuits, a skilled broker can help you navigate the potential minefield of risk and shield you from many possible issues.

Director and officer liability insurance is a must-have for your nonprofit leaders. It’s imperative that you have enough coverage so that they can feel confident doing their job. It’s well worth making a phone call to your insurance agent or broker to check on the details of your current policy.

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 25
0

Manage Your Money: 5 Tips to Manage the Grant Process

By | Grant Management | No Comments

Grant managers know that having policies, procedures, and internal controls ensures accountability and transparency throughout the grant process. Using grant software also helps managers track and measure their activities. Managing funds in accordance with the terms of each grant is vital to smooth operation of a nonprofit.

5 Tips to Manage Grants

It is necessary to have a strong structure in place to manage grants. Most grants are awarded for specific purposes rather than general fund grants, meaning they have to be used for specific programs or activities. Tracking expenses back to the activity and against grant funds is essential to comply with the rules of the grant.

The following five tips can help you manage your grants better to ensure both compliance and transparency throughout the organization. The better you manage your grants and grant process, the better prepared you will be to report your progress to the grant organization and to apply for renewal of funds later.

Better Grant Management: 5 Tips

  1. Share a copy of the original grant: Be sure that everyone working on the project has read the entire grant proposal and guidelines. Depending on the length and complexity of the original document,it may be necessary to have someone distill salient points into a simple guideline for everyone working on the program.
  2. Use true fund accounting software such as Abila MIP to manage documentation. Abila MIP fund accounting helps you manage grant funds against program accounts to keep funding separate from other sources and to ensure that every penny is tracked back to the program where it counts.
  3. Enforce deadlines among employees, especially when it comes to submitting program reports, funding information, and other materials related to fulfilling the grant.
  4. Make sure that all employees also understand the organization’s policies regarding grant management, funding, and adherence to the grant’s program designations.
  5. Monitor all areas of grant management and funding. Use your grant management and fund accounting program reports to keep a close eye on all expenses and revenues pertaining to the grant. If anything looks unusual, check on it immediately. 

Internal Controls

It’s also important to put into practice good internal controls pertaining to grant management, too. This includes:

  • Securing and safeguarding credit cards, banking information, and passwords
  • Monitoring grant fund use and tracking all expenses to the fund allocation
  • Training staff in grant processes and procedures
  • Safeguarding any grant-related resources such as paperwork, applications, and program data
  • Reconciling all bank and credit card statements regularly such as weekly, biweekly, or monthly, depending on the organization’s needs
  • Following up on any outstanding items that appear after reconciliation
  • Never keeping cash on hand related to the grant, or, if you must have petty cash, lock it up when it’s not in use and always have two people to count and witness moving cash into and out of lockboxes
  • Requiring two signatures on checks related to grant funds 
  • Changing passwords regularly and requiring higher security passwords on banking and other financial information

Grant managers, like their counterparts in accounting and finance, know the importance of safeguarding data and ensuring clear, careful, and concise tracking of fund expenses. Internal controls are an important part of grant management as is ensuring clear communication among the team working on fulfilling the grant obligations. Software such as Abila MIP Fund Accounting makes grant management much easier.

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 18
0

Three Ways to Get Board Members Involved in Fundraising Activities

By | Fundraising | No Comments

One common refrain heard among nonprofit management everywhere is “I can’t get my board to help with fundraising!”

Does this sound familiar? You’re not alone. Many board members perform their duties faithfully but fail to support or engage in fundraising activities. That’s a shame, because board members have a lot to offer an organization that they are deeply involved with and know very well.

It’s not impossible to get busy board members to help you with fundraising activities. The trick is to make it easy for them to say yes. Give them specific things they can do and the fundraising tools to help them and with the right amount of effort and support, your board can become your best advocate.

3 Tips to Get Board Members to Help with Fundraising

The key is to remove any objections they have to helping with fundraising. Common objections include:

  • “I don’t have time to help”
  • “I don’t know what you’d like me to do”
  • “I’m not good at fundraising”

To overcome each objection….

“I don’t have time to help”

 

  • Create a list of fundraising tasks you’d like help with and distribute it via email and at your next board meeting. Be as specific as possible. Break large tasks into smaller steps.
  • Ask people directly if they can help with one task. By asking them personally, rather than sending out a blanket “please help” message, you’re making it much more likely for them to say yes to the specific request.
  • If board members aren’t sure how to perform the task, offer to  demonstrate it, but avoid doing it for them.
  • Break tasks into small half-hour increments or things that can be completed in half an hour or less. After all, who doesn’t have half an hour each week to give to their favorite charity? It’s not much time  to give and it’s easier for people to agree to the request.

 

“I don’t know what you’d like me to do”

 

  • Asking for help with a specific task(s) on your list (see above) overcomes this objection.
  • Ask each board member to approach one friend as a potential donor.
  • If they aren’t comfortable asking directly for donations, ask them to provide you with a list of people they think might be willing to donate to the organization.
  • Spend time with board members writing appeals and solicitation letters. Provide them with templates and text to send out on their own.

 

“I’m not good at fundraising”

 

  • Offer support and training to help with the fundraising process.
  • Involve them at every step of the way: creating donor lists, approaching potential donors, writing appeal letters, reviewing donor marketing, etc.
  • Provide them with individual web pages they can use to process donations. This can be a simple way to track who is following up on fundraising activities and personalize the appeal for each board member.

 

Working with your board may seem like a  challenging process, especially when it comes to securing their help with fundraising activities.Although it’s an important task that they should embrace, they may not. You can help them become your best advocates by overcoming their objections to fundraising in a positive, proactive way.

Fundraising and Donor Software: Accountability and Transparency

Fundraising and donor software can help you track all fundraising activities including those in which your board members are engaged. The right fundraising and donor management software makes it easier view everyone’s activities and ensure accountability and transparency.

If you’d like a free consultation to discuss fundraising and donor software, please contact Welter Consulting.