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MIP Fund Accounting

Dec 31
0

Nonprofit Accounting is Not a Luxury, It’s a Necessity

By | MIP Fund Accounting, Nonprofit | No Comments

iStock_000019130036XSmallIf you’ve ever run a nonprofit, or contributed to one, you know that many of these organizations rely on the contributions of the public. There are countless drives, fundraisers and initiatives created in order to bring more money in to keep the nonprofit afloat, allowing it to continuously provide services to the public. In order to keep tabs of these contributions, Nonprofit Accounting is not only a luxury, it is an absolute necessity.

The nonprofits that are taken seriously are the ones that keep proper books. By taking advantage of sophisticated accounting software, it becomes easier to maintain nonprofit accreditation, give contributors an accurate account of their donation and move forward with initiatives, knowing fully what money you have to work with. You can receive these accounting practices through the use of companies and software that cater to people who run these nonprofits.

Whether you run a community action program or a research organization, provide service to the homeless and the hungry or healthcare clinic, accounting should be at the forefront of your priorities. Leverage technology and sound accounting practices and  you’ll be able to keep track of every dime that comes in and out of your organization, which, in turn, will allow you the opportunity to fulfill your mission and serve your constituents.

In order to maintain the trust to the public, nonprofits must be run with organization and proper bookkeeping, so leaving these tasks to professionals can go a long way in that regard. Anyone interested in these services should take responsibility.

 

Dec 06
0

How Fund Accounting Helps Attract and Retain Major Donors

By | MIP Fund Accounting, Nonprofit | No Comments

iStock_000027056037LargeIn the nonprofit world, success generally is measured by demonstrating impact. But before impact can be measured, funds need to be raised to perform the mission-critical tasks that lead to impact. It is Fund Accounting that can assist your nonprofit in securing those funds. Here’s how.

What major donors want to know

Most major donors have a history of giving to several favorite nonprofits. While they may initially be attracted by the work of a particular organization or have a relationship with someone high up in that organization, savvy donors want to know:

  • If I make an unrestricted contribution, exactly how will that money be used?
  • If I make a gift restricted to one program, how can I be sure that’s how my gift will be appropriated?
  • How much of my gift is going to overhead, and how much to direct services?
  • How well has this nonprofit stewarded its funds in the last two years? Do they run a deficit? If so, why?

Essentially, your major donors – whether they provide individual gifts or grants – are looking for trustworthy stewardship of funds, and also, what Charity Navigator refers to as, “Alignment of Mission, Solicitations, and Resource Allocation.” In other words, “look for signs that the charity dedicates both money and staff time in ways that are consistent with what their stated mission is, and with how they represent themselves when seeking donations.” All full 990 forms, which are publicly available, include a section on the nonprofit’s largest programs and funding for those.

What system is best to prove your stewardship of funds to donors?

First, many savvy major donors have served as Directors, or Trustees, on nonprofit boards. They know that only fund accounting can deliver the line-item detail that tracks every dollar of revenue, earned or donated, and specifically how that dollar was expensed. They can read spreadsheets, audit reports, and 990 forms.

  • Whether that donor is on your Board of Directors or not, assume they understand that level of detail, and that they expect fund accounting to be the source of your reports.
  • Listen to what the donor is looking for. Offer reports, based on fund accounting, at the level of detail the donor requests. One of the many advantages of fund accounting is the flexibility to provide reports at any level of detail.

These assurances of how donated funds were expended – whether in an audit report or a simple spreadsheet – can help your organization retain savvy donors critical to your mission’s success.

Second, the Financial Accounting Standards Board and the Governmental Accounting Standards Board require nonprofits to use fund accounting for financial recordkeeping, regardless of the size or scope of the organization.

Take heart. There is no need to be a CPA to use fund accounting. With today’s technology, you can – with some training – use fund accounting software and do your financial tracking in a way that allows Board members as well as other donors to trust your financial reporting.

To learn more about attracting and retaining donors by generating trusted financial reports, please contact us.

Oct 28
0

MIP Fund Accounting Is Back

By | MIP Fund Accounting | No Comments

The truth is – MIP Fund Accounting never really left.  It has gone through several name changes.  The terrific fund accounting software that we all know as MIP has had at least three different names in the last five years:  Sage MIP Fund Accounting, Sage 100 Fund Accounting, and Abila Fund Accounting.

This has been due to company changes in ownership and brand.  The good news is that the same dedicated team that develops and supports MIP Fund Accounting has remained intact and committed to the software.  So even as the product is transforming for the future, with subscription and hosted modules, new mobile functionality and new enhancements to the current modules, continuing efforts to make the software increasingly easier to use – the company Abila is going back to its roots and is bring back the name we have been using in the field.

Welcome back MIP!

The History of MIP Fund Accounting from Abila on Vimeo.