Category

Technology

Mar 25
0

Successful Fundraisers Rely on Modern Technology

By | Accounting, Accounting Software, Fundraising, Fundraising Software, Nonprofit, Technology, Uncategorized | No Comments

Recent studies indicate that successful fundraisers rely on modern technology to support both short and long-term fundraising goals. This study, “The Future of Fundraising in the AI Era,” published by the Blackbaud Institute, surveyed 559 nonprofits on their fundraising efforts. The results indicate that organizations with digital maturity and a long-term fundraising perspective are most successful in meeting their goals. Here’s a look at their findings and the implications for nonprofits of all sizes.

Most Fundraisers Meet or Exceed Their Targets

One of the most exciting findings from the study is that most of the fundraisers who responded met or exceeded their targets, with 53% experiencing growth and 24% indicating steady numbers.

How did they do it? Without a doubt, digital maturity plays an important role in fundraising success. Digital maturity may be defined as a mindset that incorporates technology across all aspects of work. Technology isn’t seen as a separate platform but rather as an integral part of the workflow.

For fundraisers, this means using technology to solicit donations now but also to cultivate long-term relationships that lead to future gifts. Technology provides an important service, automating marketing and outreach, enabling highly specific targeting, and helping fundraisers maximize limited time and budgets.

Revenue Streams and Missed Opportunities

Another aspect of the study examined revenue streams. Non-education nonprofits focused on four revenue streams: government grants, major donations, individual donations, and foundation grants. What’s missing from this list is peer-to-peer fundraising. Although 61% of survey respondents reported using peer-to-peer fundraising, the remaining 39% did not, representing a potential missed opportunity.

Digital Maturity Stages and Fundraising Success Are Linked

One of the most important findings from the study is the link between an organization’s digital maturity and its fundraising success. The greater an organization’s digital maturity, the more likely it is to meet or exceed its fundraising targets. There is also a compelling link between digital maturity and year-over-year revenue growth.

Many organizations have embraced nonprofit accounting software. Nonprofit accounting and financial management, fundraising and donor management software, and grant and contract management platforms enabled fundraisers to use powerful automation and reporting features to improve their targeting and reach. This software, some of it AI-enabled, allows nonprofits to do more with the same team as before.

Sage Intacct, for example, offers Sage Intacct Fundraising powered by DonorPerfect to automate, modernize, and accelerate fundraising with personalized donor communications. The Intelligent GL feature uses AI to continuously monitor accounting. It can pick up anomalies in transactions. These features, when taken together, help build transparency and trust with constituents. That transparency and trust support fundraising activities.

Technology Opportunities

Given the clear link between digitally mature organizations and fundraising success, nonprofits should seek to maximize technology opportunities. But how can you do this with limited time and budget?

A few tips:

  • Maximize the use of existing technology. Many nonprofits have great resources already at their disposal, but they aren’t using them to their full advantage. Explore your existing software platforms. Are you using all the available features?
  • Set aside training time. Training goes hand-in-hand with technology use. Employees will only use technology that they feel comfortable using. You can help them overcome any barriers to adoption and use by including more training in your schedule. Consider surveying your staff to find out what they want to learn, then planning training around users’ wants and needs.
  • Explore integrations. Integration means systems that work together. They share information seamlessly, allowing you to do more with less work. Integrating accounting, finance, fundraising, and donor management platforms can provide better reports and personalization to improve fundraising activities.
  • Work with external vendors and consultants. If you already work with a technology vendor, don’t hesitate to call upon them for training and advice. Finding and working with a nonprofit consultant is a good idea too. They can help you pinpoint weaknesses in your current systems and find ways to improve them so that your organization can make the most of its existing technology resources and invest wisely in new ones.

It’s become clear that thriving organizations are those that use technology effectively. It’s not that they’ve invested the most money in the latest and greatest software packages. It’s that they have found useful ways to include technology in their daily workflows. They make the most of what they have, and they aren’t afraid to explore new ways to use technology, such as AI, in their fundraising efforts.

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.

Jan 22
0

Improve Your Expense Management This Year

By | Accounting, Nonprofit, Technology | No Comments
person at laptop computer using Expense Management software

The expenses related to a nonprofit’s budget rarely come from one big item. Instead, small expenses often accrue, resulting in a significant financial drain on revenues. Surprisingly, these small expenses are often technology expenses: site licenses, cloud SaaS platforms, and smaller apps or programs used by only a handful of people. If reducing expenses is one of your goals this year, examining your technology expenses should be the first step to improving expense management.

The Hidden Costs of Technology

We often discuss how cloud-based software is more cost-effective than site-based systems and frequently recommend cloud accounting programs to our clients. Yes, these platforms are often more cost-effective for the average nonprofit than investing in site-based systems and the accompanying hardware and personnel needed to manage them. However, hidden expenses can arise. Here’s what to look for:

Align Technology Expenses with Organizational Goals

Conduct an annual review of existing technology expenses and compare them to the organization’s plans for the upcoming year. All technology expenses should support business goals in some way. If they do not, discuss with current system users why they need the software. Can their needs be accommodated by using another system so that you can sunset one and its related expenses? You will need to take this case-by-case, but any systems that do not currently support organizational goals and objectives should be evaluated.

Audit Recurring Software Expenses

Recurring software expenses are often a significant expense. Those small, sneaky annual fees can quickly add up to quite a large expense. Many examples abound of recurring software expenses: photo editing software, social media automation, and apps that perform single functions. Perhaps these were needed last year for a project but are no longer necessary today. The accounting team should conduct an annual audit of all recurring expenses and discuss with users whether they are still needed. You may save considerable money by canceling unused software or app licensing fees.

Check Site Licenses

Another technology expense that, if it is not monitored, can quickly add up is licensing fees. Some software companies charge by the user; for example, 1-5 users incur a certain charge, 5-10 users another charge, etc. Or you pay for each individual. If your staff has changed over the past year, you must check each license to see if you can drop to a lower tier or retire individual licenses.

Where NOT to Cut Expenses

Trying to eke out another year or two from existing hardware is tempting. However, hardware such as computers, laptops, networking equipment, and mainframes often have a limited ‘shelf life’ as established by the manufacturer. Check with your managed services provider or IT department and follow their recommended replacement schedule. It is not smart to wait until things break before replacing them. When it comes to hardware, replacing aging equipment before it completely fails can prevent bigger issues, such as lost data, time, or productivity.

Other technology expenses that you probably shouldn’t trim include cybersecurity licenses, such as anti-virus software and patches, and updates or upgrades to existing technology. Support for Windows 10, for example, will end on October 14, 2025. This means that Microsoft will no longer provide security updates or patches after that date. Your systems may be vulnerable to attack if you do not upgrade to Windows 11. It is “penny wise and pound foolish,” as the old saying goes, to delay this upgrade, for a cyberattack can be stressful and costly – and possibly prevented by simply having the latest operating system on your organization’s computers.

There are more places where you probably shouldn’t cut technology expenses. However, by carefully evaluating your existing software needs, recurring expenses, and site licenses, you may be able to reduce your organization’s technology expenses significantly.

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.

Mar 20
0

Navigating GenAI: Essential Considerations for Nonprofit Boards

By | Nonprofit, Technology | No Comments
person using computer keyboard with AI overlay

Nonprofit boards must consider multiple aspects of their organizations, from finance to operations. One new area of consideration is generative AI or GenAI. With the breakthrough technology now taking firm hold in the minds of businesspeople everywhere, Boards need to make decisions now to ensure that the platform is used appropriately and ethically in the nonprofit environment.

Here, we have put together a series of considerations based on a McKinsey document by Frithjof Lund and expanded upon by our own insights. What do you think? Drop us a note or a comment and let us know.

5 GenAI Questions Every Nonprofit Board Should Ask

Depending on what you have read, seen, or experienced with GenAI, you may view it as a valuable addition to your technology stack or a troubling security risk. Both views are valid. GenAI is new, and it does indeed provide some enhancements to various tasks. It is especially good at improving productivity and efficiency. However, it also comes with some risks, especially to secure, private, or confidential information shared with it.

Here are five considerations for your nonprofit board to review and discuss.

  1. Do we have a GenAI policy in place for employees and volunteers?

Given how new GenAI is, the answer is “probably not.” However, it is essential to clarify the organization’s position on when, how, and why GenAI may be used and by whom.

Consider the following as part of your GenAI policy:

  • When do we think it is acceptable to use GenAI, and for what types of projects? For example, is it okay to feed a published piece of content, such as an article, into GenAI and ask it to summarize it? Is it okay for our staff to use GenAI to outline a presentation but not okay to ask it to write an article?
  • How can it be used? Be clear about the circumstances in which you think GenAI is acceptable and when it is not.
  • Clarify what may be shared with common GenAI platforms. Many executives and security experts have expressed concern about the potential of proprietary information leaks from unwary GenAI users. Any information ingested by a GenAI platform becomes part of its memory or part of the data from which it may draw future outputs for anyone using it. Sharing confidential or proprietary information with it could lead to an information leak that puts an organization at risk.
  1. How might GenAI impact our organization?

The board must consider the impact that GenAI can make on all areas of the organization: marketing, finance, operations, and human resources. There are many proven use cases now available for the usage of AI in each of these functional areas of an organization, but it is up to Boards to decide where or how it may be utilized in each.

  1. When should we begin using GenAI?

If you’re not already using it (and some of your employees probably are already), then don’t wait. Create your GenAI policy. After study and discussion, choose an area for a pilot program. For example, consider the accounting software already in use at your organization. Does the software vendor provide an AI-based tool with it? Is it being used effectively? How might it be used to automate existing processes or improve efficiency?

A pilot project with one department is a low-risk way to test the waters. It helps you make inroads and test concepts without a heavy investment and will help you assess the results quickly too.

  1. Who will be responsible for this moving forward?

Another vital question that Boards must address is who in the organization will be responsible for GenAI policies and use moving forward. It may—or may not—be the IT department. A representative group, comprised of members from each department, may be a good way to begin to ensure that the potential of this emerging technology is considered from every possible angle.

  1. How will GenAI impact our industry?

Any new technology is a disruptor, and GenAI has the potential to be a huge disruptor in all industry segments. The question isn’t whether but how it will impact my specific nonprofit and the area in which we work. Consider researching this topic further and bringing it back to the forefront periodically for review by your board and organizational leaders.

Stay Ahead of the Curve

With the field of GenAI changing rapidly, keeping abreast of trends and changes, and incorporating those that can give your organization a competitive edge is vital. Your board can lead the charge, ensuring that this new tool becomes a useful adjunct to your existing software rather than a distraction.

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.

Mar 06
0

Beyond the Hype: Making Sense of AI’s Role in Nonprofit Organizations

By | Nonprofit, Technology | No Comments
person using laptop computer with AI on screen

Since ChatGPT made such a splash in the fall of 2022, companies worldwide have kept a close eye on the development of AI-powered tools. Now, you can’t turn on the news or open a social media app without seeing ads for AI-this or that or promises of AI completely changing the workforce.

Where does AI fit into the nonprofit world? How can organizations reassure their staff that AI isn’t there to replace them but can help make their jobs better?

Reassure Staff That AI Isn’t New to the Workplace

Even though ChatGPT made a big splash in the fall of 2022, AI isn’t new. In fact, you can reassure your team that they have already been using it in some capacity all along! For example, if you use PowerPoint, the popular presentation software, you may have noticed a feature called “Design Ideas.” Click the button, and the program will provide suggested designs to improve the layout and appearance of the slide. This is an example of AI already inside a program you’re already using. Another example is even more common: your cellphone. If you have a feature that fills in frequently used words when you text someone, that’s also AI in action.

So, AI isn’t some new robot that’s replacing human workers. It’s been there all along, and we’ve (mostly) welcomed it within the context of our jobs. When it’s done right, AI simply makes things more efficient. And who doesn’t want to be more efficient at their job?

Provide Staff with Usage Guidelines

Are you currently using ChatGPT and other AI tools? Chances are good that someone on your team is already using them. In that case, it is better to get ahead of the curve and provide helpful usage guidelines than to avoid the topic altogether.

  • Allow staff to use AI to generate outlines and brainstorm topic ideas: AI is great for overcoming writer’s block. Instead of facing a blank page without a place to start, use tools like ChatGPT to develop an idea or brainstorm a list, giving people a good starting point.
  • Never use AI-generated text without clearly stating it is AI-based or without reading through it to ensure it is accurate. Remember that tools like the free version of ChatGPT rely upon millions of documents but do not have up-to-date information. The system can make mistakes, incorrectly cite things as correct, and provide older information. It can also be plagiarized.
  • Include guidelines for what can be fed into AI as source material. Anything ingested into AI becomes part of its database forever—and can be used by anyone else. Any proprietary or confidential information must be kept from the tool, so it does not become part of the repository of information used worldwide.
  • Learn and experiment with prompts and keep a log of useful prompts. There’s a knack for asking GenAI the right question in the right way to obtain useful information. Once you’ve discovered it, keep a record of it. Ask your team to share best practices from their experimentations, too.

Improving Jobs—Not Replacing Them

One hundred years ago, many people worked as telephone switchboard operators. A switchboard operator manually connected cables at the phone company switchboard to make sure that calls went through correctly. Now, such things appear only in museums, replaced by an automatic switch and sophisticated call routing software. We don’t even think about connecting a call anymore—it happens in the blink of an eye, and many people take it for granted that this was always the case.

A few years from now, AI will be the norm rather than the exception. Nonprofits will look at it as just another tool, like their word processing or accounting software. It will be a way to do tasks more efficiently, but it cannot replace skilled workers. Emphasize to your team that skills are always valued and that no artificial intelligence, no matter how smart, will ever replace the creativity, ingenuity, and talent of a human being.

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.