Category

Donations

Nov 19
0

Integration, the Key to Donor Management Automation

By | Accounting, Accounting Software, Donations, Nonprofit | No Comments
person at computer using integration management software

Donor management encompasses all marketing and communication steps necessary to attract new donors and nurture existing donor relationships. Tasks included as part of the donor relationship management process include attracting new donors through marketing campaigns, events, advertising, and more; follow-up communications with new donors, such as thanking them for their gift and sending required information for tax purposes, and continual marketing to them through newsletters, advertisements, personalized emails, direct mail, and more. Lastly, data from donor campaigns must be analyzed and interpreted to build on successes and retire unsuccessful campaigns.

This mostly manual process benefits from automation. Automation in the donor management process reduces manual tasks, streamlines data and reporting, and can enhance donations. However, to automate the donor management process, nonprofits must ensure that their donor marketing or customer relationship management (CRM) and nonprofit accounting platforms are fully integrated.

Why Is Integration Vital to Donor Management Automation?

Integration of critical platforms, such as donor management software and nonprofit accounting systems,  ensures that all data is up-to-date and accessible in one place, reducing the risk of errors and data duplication.

Enhanced efficiency is another significant benefit. Automation through integrated systems streamlines administrative tasks like data entry, donation tracking, and reporting. This frees up staff time to focus on strategic activities like donor engagement and fundraising campaigns.

Improved donor relationships are also a key advantage. With integrated systems, nonprofits can personalize communications and interactions based on comprehensive donor profiles. This helps build stronger relationships and increase donor retention by ensuring timely and relevant outreach.

Finally, integration ensures seamless communications. All channels, such as email marketing, social media, and event management tools, work together cohesively. This creates a unified experience for donors and ensures consistent messaging across platforms.

By integrating their systems, nonprofits can enhance their operational efficiency, improve donor engagement, and ultimately increase their impact.

Five Ways in Which Automation Helps Donor Management

There are many ways in which automation helps donor management. These include:

  1. Reduced manual data entry: With system integration and automation, data entry is reduced or eliminated. Donor information entered into the accounting system flows seamlessly into the CRM and vice versa. This saves significant time and effort.
  2. Eliminate mistakes: By reducing manual data entry, your organization can reduce the chance of mistakes and duplicate data.
  3. Better reports: Integrated CRM and accounting platforms also ensure that as donor information is updated in the CRM, the accounting information is automatically updated too. This ensures that reports generated from the accounting platform contain the latest information.
  4. Improved insights: Integration ensures that reports contain data from multiple sources, leading to better insights. Such reports can also be generated rapidly, leading to more accurate decision-making about donor campaigns. Marketers can capitalize on trends and respond swiftly to opportunities.
  5. Enhanced donor communications: Automated donor management can also enhance communications by sending customized thank-you letters and follow-up campaign materials.

Take Advantage of Automated Donor Management Today

As you can see, nonprofits receive many benefits from integrating CRM and accounting platforms and automating their donor management tasks. Start today with a comprehensive review of your existing platforms. Which may need to be updated? What can be integrated? Then, look at the possible benefits of donor management automation. What can your organization achieve through automation?

With the answers, you can take the next step and ensure software and systems are prepared to accommodate automated donor management programs.

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 us for more information.

Aug 11
0

A Comprehensive Guide to In-Kind Donations for Nonprofits

By | Donations, Nonprofit | No Comments
people with boxes and food. Welter Consulting logo

In-kind donations are a valuable resource for nonprofit organizations, providing them with essential goods, services, and expertise to support their mission. In this blog post, we will explore the ins and outs of in-kind donations, including their benefits, best practices for soliciting and managing them, and how nonprofits can maximize their impact. Whether you’re a seasoned nonprofit professional or just starting out, this guide will equip you with the knowledge and strategies to effectively leverage in-kind donations for your organization’s success.

Understanding In-Kind Donations

In-kind donations refer to non-monetary contributions made to nonprofits, such as goods, services, or professional expertise. These donations can range from tangible items like clothing, food, or equipment to intangible resources like pro bono legal services or marketing support. By receiving in-kind donations, nonprofits can access valuable resources that might otherwise be beyond their financial reach, enabling them to allocate more funds toward their core programs and services.

Benefits of In-Kind Donations

In-kind donations offer numerous benefits for nonprofits. Firstly, they help diversify and expand the range of resources available to support the organization’s mission. Secondly, they allow nonprofits to enhance their operational capacity by reducing expenses and leveraging the expertise of skilled professionals. In-kind donations also foster strong community partnerships, increasing the visibility and credibility of the organization while engaging individuals and businesses in its cause.

Soliciting and Cultivating In-Kind Donors

To effectively solicit and cultivate in-kind donors, nonprofits should implement a strategic approach. Start by identifying potential donors who align with your organization’s mission and values. Develop a compelling case for support that highlights the impact of in-kind donations on your programs and services. Craft personalized outreach messages and leverage various communication channels to reach out to potential donors. Building and nurturing relationships with in-kind donors is crucial, so ensure timely and meaningful acknowledgement of their contributions and keep them updated on the impact of their support.

Managing In-Kind Donations

Proper management of in-kind donations is essential for maximizing impact. Establish clear policies and guidelines for accepting, valuing, and documenting in-kind contributions. Regularly communicate your organization’s needs to potential donors and maintain an up-to-date wish list of desired items or services. Implement effective inventory and tracking systems to ensure proper utilization and distribution of donated goods. Additionally, explore opportunities to leverage in-kind donations for fundraising events, auctions, or volunteer recognition initiatives.

Recognizing and Stewarding In-Kind Donors

Recognizing and stewarding in-kind donors is crucial for maintaining strong donor relationships. Express gratitude through personalized thank-you letters, social media mentions, and/or public acknowledgments. Consider offering exclusive benefits, such as invitations to special events or volunteer opportunities, as a token of appreciation. Regularly update donors on the impact of their contributions, sharing success stories and testimonials that demonstrate the tangible outcomes made possible by their support.

In-kind donations play a vital role in supporting the work of nonprofit organizations. By understanding the benefits, implementing effective solicitation and management strategies, and recognizing the generosity of in-kind donors, nonprofits can harness the power of these contributions to further their mission. Embrace the guide provided here to navigate the world of in-kind donations and unlock new avenues of support for your organization. Remember, the impact of in-kind donations extends far beyond their immediate value—they are a testament to the collective effort of individuals and businesses coming together to make a difference.

Welter Consulting Can Help!

If you require further guidance on optimizing your in-kind donation strategies or need assistance with nonprofit management, consider contacting us! Our expertise in providing software solutions and consulting services for nonprofits can help streamline your processes and enhance your overall organizational efficiency. Visit Welter Consulting’s website to learn more.

Nov 15
0

Improving Communications with Data and Trend Analysis

By | Accounting, Data, Donations, Nonprofit | No Comments
people looking at papers on a desk with graph overlay

Charts, graphs, and financial reports may seem like they don’t say much to those outside of the accounting and finance department. But with the right data and trend analysis, the information contained in these reports can inform and improve constituent communications.

The Tip of the Iceberg

It’s an old cliché, but a good one—the tip of the iceberg. If you imagine an iceberg, you can only see the tip of it. The majority of the iceberg is underwater but it’s probably the more important part.

The same goes for your organization. The data that you can easily find is the “tip of the iceberg” and readily available. And it’s usually what your team uses to base their decisions.

However, what’s going on underneath the surface is often the more valuable information. Getting to it is the challenging part.

How Nonprofits Can Leverage Data

Many organizations only dig at the surface level into their data. They run basic financial reports to gauge how fiscally solvent an organization is, or which programs require more funding and leave it at that. But the data that can be used to assess funding can also be used to dig deeper into issues such as program demand, program use, and more.

Each nonprofit is unique and tracks different data. But, in general, nonprofits can mine their data to find information to help them improve programs, improve donor communications, and ensure transparency.

Look beyond your existing technology for additional data. Although your current accounting system may provide plenty of data, other data exists. If your nonprofit sells items, look at warehouse and inventory reports. If programs provide participation and survey data, add that to the data repository for examination. Consider many sources to leverage all of your data and build a stronger, better organization.

Improve Programs

Nonprofits that track program participation can look more closely at program data to update their offerings. Programs that receive higher participation, for example, should be examined to determine if they can be spun into additional opportunities. For example, an animal shelter offering a spay/neuter clinic may find that a free rabies vaccination clinic is also in high demand and brings people into the shelter to view (and potentially adopt) homeless pets. An education nonprofit that finds its free mathematics tutoring program for elementary school children in high demand may wish to expand into the high schools and so on.

Better Donor Communications

The same data that reports on your program activities can also be leveraged to improve donor communications. Program participation and success data can be parlayed into donation campaigns demonstrating the efficacy of your offerings. People like to give to successful initiatives as it makes them feel that their donation is worthwhile, so demonstrating how successful the programs are can go a long way towards encouraging additional donations.

Enhanced Visibility

Successful nonprofits know that increasing visibility into their activities and finances is an excellent way to court donors and participants. The more transparency and visibility into their actions, the greater the trust they engender with the public, which in turns leads to better utilization of their programs and increased donations. Sharing the data from your systems and using it to for storytelling purposes can take your nonprofit to new levels.

Increasing Nonprofit Success in a Tough Economic Climate

Inflation and global unrest have created a climate of uncertainty, and this in turn means fewer people donating to nonprofits … or does it? It doesn’t have to lead to a downturn in donations. Instead, leveraging stories and data, improving program offerings based on data, and ensuring transparency and communications can build up programs and services during times when other nonprofits may be struggling. For those nonprofits that can dig deeply into their data, they may find information that can lead them to greater improvements across the organization.

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 us for more information.

Nov 08
0

How Should Your Nonprofit Handle Cryptocurrency Assets?

By | Accounting, Cryptocurrency, Donations, Nonprofit | No Comments
person holding tablet and touching virtual screen with finance and bitcoin graphics

Cryptocurrency presents many challenges to nonprofits that accept it as payment or donations. Crypto such as bitcoin, ether, and the many other digital assets on the blockchain, are becoming ubiquitous with everyone from college kids to grannies dabbling in the new financial asset. And while regulations are being discussed, companies and organizations are left struggling to understand how to track and manage it. Here are the challenges and some advice for nonprofits interested in accepting or utilizing crypto assets.

What Is a Cryptocurrency?

Cryptocurrency, or crypto, is a digital asset tracked on the blockchain—an immutable public register of transactions that enable anyone to track the original and transfer of the asset. While you may know the major “coins” from the news such as bitcoin or ether, there are hundreds of other coins on the market.

Challenges of Cryptocurrency

Crypto is a new category of financial asset and one that regulators continue examining to determine how to account for them. Are they investments (like stocks or bonds) or assets (like gold or silver)?

In addition to challenges understanding classification and the rules governing such classifications, there are additional challenges inherent in accepting them either as payment or donation, including:

  • Highly volatile value: Unlike fiat currency, which offers a stable store of value (despite inflation), the value of digital assets varies widely from day to day, even hour to hour. This makes it difficult to estimate and track over time.
  • Incompatible with ERP setup: Crypto values are tracked to the 16th decimal place, which is completely incompatible with ERP systems set up to track dollars, euros, and other common currency.
  • Difficulty tracking: GAAP rules require tracking of assets on a cost basis (the initial purchase price of the asset), the fair value of their holdings, and the book value. This is impractical with digital assets due to their volatility, but clear guidelines are lacking from regulators.

Forming a Crypto Asset Strategy

Given the many challenges, you may be wondering why your organization should even consider accepting cryptocurrencies. Donors may wish to contribute to your organization using crypto, and this is a valid reason to consider adding it as a donation method. To do so effectively, you’ll need to create a crypto asset strategy to guide your staff in handling such assets.

  • Learn first: As with any new technology, platform, or asset, it’s important to learn all you can about it before diving in. Discuss adding cryptocurrencies to your organization with your accounting team and outside CPAs (if you have one) to understand their point of view.
  • Research payment gateways: Cryptocurrency payment gateways enable you to streamline transactions. Bit Pay and others offer ways in which you can send and receive crypto in the easiest manner possible.
  • Discuss with your board: Your board needs to be fully behind the project to add crypto as a payment or donation method. Bring the issue to your board and ensure a thoughtful discussion by sharing industry statistics and information with them. Some board members will be unfamiliar or even put off by the news from the crypto world and may need some additional information prior to engaging in a discussion.
  • Engage stakeholders: Bring the issue to your internal teams, too. Ask representatives from each department to be on a committee or group to investigate adding crypto to your organization. It’s vital to hear from every department that may be impacted by the decision.

Keep in mind that if you do proceed with crypto, you may need to customize aspects of your accounting system as well as internal controls to adjust to this new method of payment.

Cryptocurrency seemed like a fad when it appeared in 2008, but it’s still going strong. If it looks like an opportunity for your organization, begin exploring it today.

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 us for more information.