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Nonprofit

Jun 01
0

Protecting Your Organization from Cybercrime – The Latest Update

By | Accounting, cyber security, Nonprofit | No Comments

Cyberattacks are up 40% globally in 2026. Nonprofits aren’t immune to the threat; they are also experiencing an uptick in cybercrime. Both large and small organizations have been hurt by cyberattacks. According to U.C. Berkeley’s Center for Long-Term Cybersecurity, a hunger relief nonprofit in Philadelphia lost $1 million to a cyberattack; the International Red Cross experienced the theft of personal data for over 500,000 people it had served.

While you may think your nonprofit is too small to be affected, criminals know that smaller nonprofits are less likely to have robust cybersecurity controls and training in place to guard against attacks. It doesn’t take much to get beyond people’s defenses if they haven’t been trained to watch for threats.

We recommend taking several steps to protect against cybercrime. Just as you make sure you lock the doors of your office each night to keep robbers out, you must also lock the “digital door” to prevent cybercrime. These tips will help.

Evaluate Your Cyber Defense Strategy

Take time now to evaluate your organization’s cyber defenses. These include:

  • Routine updates for software
  • Special antivirus software
  • Training for all personnel to recognize, avoid, and respond to threats
  • Cyber security response plans
  • Cyber liability insurance

Keep All Software Updated

Attackers find and exploit vulnerabilities in existing software. This includes operating systems (Microsoft Windows, Mac OS), applications (Word, Excel, others), and websites. Companies issue updates and patches once these vulnerabilities are known. Keeping all your software up to date prevents many attacks from succeeding by closing loopholes in system code.

Invest in Anti-Virus Software

Sure, your PC might come with Microsoft Defender installed. Or you might find free antivirus software online. But these programs come with limitations. Experts agree that installing an extra layer of protection, an antivirus software package, adds another layer of protection.

Many companies offer antivirus software, including McAfee, Norton, Sentinel One, and others. Check reviews and prices and discuss with your IT consultant which one might work best for your organization.

Fortunately, if you use cloud-based nonprofit accounting and other cloud-based systems, they typically include all updates and update automatically.

Train Your Personnel to Recognize Cyberattacks

While software can help ward against attacks, the best defenders in your organization are your employees. Most cybercrimes happen because people make mistakes. They click on bad links or respond to phishing texts. They download infected software. They inadvertently reveal passwords or answers to security questions that can be used to access accounts.

Create a training plan to help everyone in your organization remain vigilant against phishing and other cyberattacks. This isn’t a once-and-done training; it should be held regularly to keep the information fresh in everyone’s minds. Provide concrete examples of what attacks might look like, and ensure people know the approved process for activities such as downloading software, resetting passwords, and accessing systems.

Cybersecurity Response Plans

Do you have a cybersecurity response plan? Such plans provide your team with guidelines in the event of a cyber breach. For example, what if antivirus software flags a file they just downloaded as infected—do they know how to quarantine and who to report it to?

Working with a nonprofit consultant or your IT director, develop what-if scenarios. Document the steps you’d like your team to take if they believe a data breach or cyber-attack has occurred. Be sure to update these plans annually and include them in your team training.

Purchase Cyber Liability Insurance

Along with workers’ compensation and general liability insurance, smart organizations also purchase cyber insurance. This insurance provides protection against data breaches and cyberattacks. Costs and coverage vary widely, so speak with your insurance agent to determine the package that suits your risk level and needs.

Prevent Cyberattacks Before They Happen

The old adage, “An ounce of prevention is worth a pound of cure,” is definitely true when it comes to cybercrime. No matter how small your organization is, you’re a target. AI has made it easier than ever for criminals to launch campaigns, and they work hard to personalize them to make them seem real. Take steps now to protect your 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.

May 29
0

Let’s Put the “Fun” Back In “Fundraising” with Social Media

By | Fundraising, Nonprofit | No Comments

Did you know that social media ranks as the second most popular way that donors give to their favorite causes? Like Facebook birthday fundraisers, social media fundraisers make it fun for people to discover new causes and share their passion and support. Here are three ways in which you can tap into the power of social networking as a fundraising channel.

Platform-Native Fundraising

Many platforms have built-in fundraising systems. Consider the ubiquitous Facebook birthday fundraiser. This platform-native fundraising method makes it simple for individuals to set up a fundraiser for their birthday. They simply select the name of an organization from a list of possible organizations or search for yours, then set a goal. Facebook provides the posts and collects the money, forwarding it to the charity. It’s a win-win.

To get your organization into the list for Facebook fundraisers, visit the Meta for Government page. It’s a simple process, but it can take several weeks, depending on how quickly Meta processes your application. This tool is only available to nonprofits in the United States, Canada, and Australia.

Bonus: Because Instagram is also owned by Meta, it also features a platform-native fundraising app. Users can create fundraisers directly from reels, stories, and livestreams.

Social Media Ambassadors

Have you heard of the term “influencer”? These are people, especially bloggers or other content creators, who have developed a loyal following around a specific niche topic. It might be fashion, or arts and culture, politics, or technology, but these influencers have the interaction and scale that enables brands to reach more people on social media through influencer marketing.

The same can hold true for nonprofit ambassadors. Think of ambassadors as your most loyal fans. These are people who have a large, loyal following on social media and are already involved in some way with your organization.

To build an ambassador social media fundraising event, identify the most promising ambassadors from among your supporters. You may need time to scan through your donor list and compare the names to publicly available social media profiles, but don’t skip this step— it’s critical for a good program.

Next, reach out to each person individually. Describe what you’d like to accomplish. Start by sharing with them the impact they can make if they participate. Then, make it simple for them to say “yes” by providing an outline of the event. Explain the goals and provide a timeline. Then, provide branded resources—logos, text, and your own images—that they can use in the campaign. Some organizations create a simple, shareable folder on Dropbox or Google Drive to share assets with ambassadors. When the campaign is launched, provide ongoing support. And of course, when the campaign is finished, thank the ambassador. Thank them personally and publicly. It’s a great way to expand your reach and fundraising efforts on social media.

Encourage DIY Fundraising, Too

Everyone can make a difference! DIY fundraisers are like ambassador programs, but your organization does not need to identify the individuals. Think of it like people raising their hands and saying, “Yes, I’ll help!” Provide your DIY fundraisers with information like the package you put together for the ambassadors.

Some DIY fundraisers also get creative and launch hybrid fundraising campaigns. These are in-person and online events. They may accept donations both in-person and online. Many local business owners are willing to support nonprofits through their brick-and-mortar stores and on social media.

Get Creative

This is only a small sample of social media fundraising. Giving Tuesday, an event after Black Friday during the holiday season, may lend itself to special social media campaigns. TikTok and YouTube challenges inspired people nationwide with the ‘Ice Bucket Challenge’ in 2014, an example of a viral event that generated national exposure and donations to ALS charities. Such creative fundraising campaigns encourage, inspire, and motivate people to rally behind a cause. The power of social media means that positive giving can be shared widely.

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.

May 27
0

Using a Strategic Compensation Plan to Attract and Retain Great Talent

By | Nonprofit | No Comments

An organization is only as good as its people. To attract and retain the best talent, you must offer not just a good compensation package, but a great one.

Smart nonprofits use a strategic compensation plan as part of their hiring strategy. By benchmarking compensation across multiple industries (not just nonprofits) and considering valuable additions to a compensation package, such as retirement benefits, health insurance, and more, nonprofits can use their compensation package to recruit, retain, and motivate top talent.

What Is a Strategic Compensation Plan?

Most organizations have a compensation plan. This includes salaries aligned to positions, seniority, and job duties, as well as benefits such as PTO, health insurance, and more.

A strategic compensation plan takes this a step further. It considers the entire package as part of a comprehensive strategy for talent acquisition, retention, and motivation. While many factors help attract top talent, a competitive compensation package is an integral part of talent management.

A good strategic compensation plan isn’t just about enticing top talent to join your organization. It’s also an important retention tool, especially when compensation packages align with an organization’s mission, vision, and values.

Make Sure You Have a Clear Baseline

Before starting your strategic compensation plan, ensure you have the basics of a good, compliant compensation plan in place. This includes:

  • Job descriptions for every position in your organization—update them, if necessary
  • Reporting lines or organization charts to indicate routes for promotion and growth
  • Key performance indicators aligned with job descriptions to measure progress
  • Salary benchmarking reports to provide the average salary for your region, industry, and positions
  • Competitive compensation information, to assess your current plans against competitors
  • Employee surveys to give managers insight into job satisfaction and potential compensation gaps

Once you have evaluated these areas, you’re ready to consider how you may improve your current packages to make them part of a competitive hiring strategy.

Compensation Package Consideration

It goes without saying that any compensation package you create must comply with federal and state laws. Discuss any questions you have with non-profit human resources experts or consultants and review policies internally to ensure full compliance with the law.

After baseline compliance and salary, other benefits make up the full compensation package. This is where your nonprofit can use various benefits as part of its hiring strategy. Keep in mind that you’re not competing for the best talent from only other nonprofits in your area; you’re competing against for profits, too. Many nonprofits find that adding the following benefits can attract and retain great staff.

Consider offering the following benefits in addition to salary and required health insurance:

  • Paid time off: Consider adding a flexible PTO package to your compensation to make it more competitive. Employees can use the days for vacation, sick leave, personal reasons, or caregiving responsibilities.
  • Health and wellness benefits: In addition to basic medical insurance, many organizations include dental, vision, and mental health benefits to their insurance packages for comprehensive wellness.
  • Perks: If you can offer perks like discounts on gym memberships or similar opportunities, these may also be “nice to have” additions to a compensation package to set it apart.
  • Performance bonuses: Adding a percentage bonus when an employee achieves goals and Key Performance Indicators (KPIs) can be a powerful motivator.
  • Promotion opportunities: Employees frequently cite a lack of opportunities as a reason for leaving. Look across your entire organization to identify growth pathways; employees need to see opportunities within it. Otherwise, they will look for them elsewhere.

Mission, Vision, and Benefits Should Align

Lastly, ensure that your benefits package aligns with the organization’s mission and vision. If your organization’s mission is to ensure educational opportunities for all, offering them and reimbursement as part of the compensation package makes sense. It’s these kinds of tie-ins to mission and vision that can make a strategic compensation package really stand out.

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.

May 21
0

Building Trust Through Numbers: Your Guide to Nonprofit Financial Best Practices

By | Accounting, Nonprofit | No Comments

As the leader of financial planning and accounting at your nonprofit, you have the unique ability to build trust through numbers. Sound financial management best practices ensure your organization has ample margin to support its mission. Clarity and transparency around financial practices builds trust through the numbers, trust that encourages loyal donors or members, and positive public perception. The following best practices for nonprofit financial management can help you improve your financial management skills and engender trust and public goodwill.

Five Nonprofit Financial Management Best Practices

  1. Manage restricted funds carefully.
  2. Track revenue by fund.
  3. Diversify revenue streams.
  4. Create what-if scenarios.
  5. Build a reserve fund.

Manage Restricted Funds Carefully

Knowing, understanding, and managing restricted funds—grants or donations earmarked for specific projects or activities—is critical. Such funds should be tracked to the related activity and reported back to the funding entity. Grants, for example, are often for a very specific purpose, and must be managed exclusively for that purpose. Most granting organizations require regular reports, including financial reports, demonstrating how their funds were used. Noncompliance can have serious tax, legal, and ethical consequences.

Track Revenue by Fund

Tracking revenue by funding type is more than compliance. It’s a positive activity that can help you gauge the income and expenses for each program or activity. Track all income and expenses by funding type to ensure you understand and can report on the position of all activities, grants, and donations. Reporting this information clearly and succinctly to boards, donors, and members helps build trust and clarity around activities supporting your mission and how funds are used.

Diversify Revenue Streams

You’ve heard the old saying, “Don’t put all your eggs in one basket.” Nonprofits would do well to heed this advice. Relying solely on a single major donor or a single annual fundraiser for most of your revenue is a disaster waiting to happen. If the donor decides not to give the same amount (or any amount) next year, you may not have the capital to continue. Or, as some organizations discovered during the pandemic, if a major fundraiser, such as a dinner or event, is canceled, it can severely curtail fundraising.

Instead of relying on one activity or revenue stream, diversify your income. Plan multiple events. Continue fundraising even in times of surplus and put aside money in a reserve or emergency fund (see the last point in this article). Try new events and apply for different grants. Diversified revenue streams build a healthier fiscal base for nonprofits.

Create What-If Scenarios

Conducting “what-if” exercises can help you plan for a range of financial uncertainties. Such exercises are often used in IT to help plan for worst-case scenarios, and they can be adapted for nonprofit financial management, too.

To build what-if scenarios, ask yourself questions such as:

What if our major donor stops giving each year?

What if the annual big fundraising event doesn’t happen?

What if fixed expenses, such as rent or insurance, suddenly go up?

What if we experience a cyber-attack and lose our donor list?

These and other questions can help you explore various possible situations and develop contingency plans. While you can’t predict every possible worst-case scenario, you can think through many common ones and understand the financial ramifications and possible actions to take to mitigate losses.

Build a Reserve Fund

A reserve fund is money set aside for a rainy day. It can be used to fund operational expenses when times are lean or when unexpected dips in revenue threaten to put the organization in the red. Reserve funds can be built gradually, just as financial planners recommend that individuals set aside a small amount each month from their paychecks to fund emergencies such as car or home repairs. Determine the reserve amount you believe your organization may need in an emergency, and work to build a fund that can cover these expenses.

Nonprofit Financial Best Practices Evolve

The basics of good nonprofit financial management remain the same, but the practices surrounding them can evolve over time. They evolve as organizations grow; a startup has different financial needs than a well-established nonprofit. They also evolve as organizations adopt more sophisticated systems, such as shifting from spreadsheets to nonprofit accounting systems to track expenses.

Working with a nonprofit consultant, such as Welter Consulting, can help you see beyond your blind spots and pinpoint best practices to build a sound financial base for your organization. With time, patience, and focus, you can create the solid foundation upon which great nonprofits are built.

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.