When a Nonprofit is initially formed, it’s usually developed by creative, humanitarian type people who want to make a difference in the lives of those less fortunate. These “right-brained” individuals seldom have any interest in accounting or any desire to push numbers or calculate expenses.
Although this is perfectly understandable, the reality is that a Nonprofit must have responsible oversight of fund management and lucid accounting practices in order to productively function and actually achieve their goal of helping others. It is essential to your organization’s financial security to be in compliance with government stipulated regulations, which require Nonprofits to meet specific criteria in order to operate legally.
These guidelines combined with the fundamental obligation to show solvency and quality fund management practices to your Nonprofit’s Board of Directors virtually demand that your association utilize professional accounting processes. The question is how to accomplish this efficiently and effectively without losing sight of the primary focus of your Nonprofit’s mission to be a charitable resource that benefits the disadvantaged, poor, or other targeted group.
Fund Accounting Software provides one extremely beneficial, technologically savvy method to ensure your organization’s ethical, competent financial management strategies. Commercial software packages used by businesses that are not 501c organizations are dramatically different and fail to provide the precise features specific to the needs of a Nonprofit group.
By leveraging the promising technology of Fund Accounting Software products, your organization can remain competitive and gain access to government and private grants. In addition to helping the public by offering unequivocal services in fulfillment of your group’s mission statement, every Nonprofit is also held accountable to the public. Operating with financial transparency allows your organization to gain the public’s trust that their donations will be used legitimately and appropriately.