Jun 26
0

Use Scenario Planning to Build a Strong, Healthy Budget

By | Accounting, Budget, Nonprofit | No Comments

We’re in a period of volatile federal funding and delayed reimbursements right now. The current administration’s push to tighten purse strings and cut waste and fraud has led to a slowdown in available funds, some of which nonprofits rely upon for their work. Add to this the rising costs of everything, inflation, and the decline in donor giving, and you’ve got many organizations feeling nervous about their financial future.

Instead of feeling nervous, feel prepared and ready to face the future with a strong budget forecast that takes these factors into account. Forecasting is the bedrock upon which solid nonprofit organizations are built. How do you accomplish this? With scenario planning. By using what-if scenarios, you can build budget forecasts that take into consideration the most likely situations your organization can encounter.

people in office using scenario planning

What Is Scenario Planning?

Scenario planning goes by many names: worst-case scenario, tabletop exercises, and what-if planning. All of this means using an imaginary, possible situation to think through your organization’s response. When it comes to budgeting, consider the most likely situations, and build your what-if scenarios against them.

For example, an education nonprofit may face the following what-if scenarios:

What if …

  • Our largest donor decides to give his money elsewhere?
  • The grants that cover our programs are not funded next year?
  • The large contract we have with the state is rebid, and we lose the RFP?

Other scenarios are possible, so brainstorm them with your team to identify the most likely your nonprofit may face. Perhaps it’s staff attrition or the need to move your operation to a new location. These and other scenarios all significantly impact budgeting and should be addressed as part of your what-if scenario budgeting.

For each of these scenarios, building a budget in response to “it happens” will help you anticipate and prepare for the worst-case scenario. If it doesn’t happen, you’ll have a rock-solid budget. If it does happen, you’ll be prepared and know what to do.

Budgeting Strategies to Address Uncertainty

Uncertainty is always with us. Smart budgeting strategies can make you feel more confident about navigating the future and what it holds for your organization.

Spend Less

It’s obvious, but something many organizations are reluctant to do is spend less. See where you can cut expenses. Ask managers to review their department budgets and find ways to reduce expenses. Even small efforts add up to a stronger financial position over time.

Adjust Staffing Levels

Some organizations find that they must adjust staffing levels to improve their financial health. Budgeting for the future may involve adjusting staffing levels, such as a temporary moratorium on adding new positions, or deciding not to fill vacancies if someone voluntarily leaves.

Shift Fundraising Efforts

Many organizations shift fundraising efforts to broaden visibility and donor engagement. Look for ways to move from uncertain funding to more certain opportunities, such as finding additional donors if your organization relies on one or two large donors, grants, or foundations.

Use Technology to Improve Forecasting

Nonprofit organizations can also tap into their existing technology to improve forecasting or look to new nonprofit accounting systems for better forecasting support. Integrating your donor relations (CRM) platform with your nonprofit accounting system ensures that data flows between the two systems, reducing manual errors and saving you time.

Many nonprofit accounting systems, such as Sage Intacct, offer AI-enabled shortcuts and time savers within the platform. You might not need to invest in new software. Explore how to get more from your existing platform.

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.

Jun 24
0

Encouraging Diversity in the Accounting Profession

By | Accounting, Corporate Culture, Nonprofit | No Comments

For several years, we’ve written about the current and expected shortage of senior-level accounting professionals. This accounting employment crisis may get worse before it gets better, especially for nonprofits seeking to attract and retain top talent. And, while we have talked about neurodiversity and how to accommodate neurodiverse individuals, we haven’t talked about the elephant in the room everyone is tiptoeing around: the lack of diversity in the accounting profession.

Try it. Ask several people to tell you what they think an accountant looks like. Chances are good it’s a middle-aged white man in a gray suit seated behind a desk. He’s Mr. Bland or Mr. Everyman.

diverse group of people working together

But he’s not really Mr. Everyman, is he? He represents just a small fraction of the rich diversity of people on this planet: the black, the white, the brown-skinned, and others. And of course, he represents only 50% of people, since there are many amazing female accountants as well. I’m one of them.

Unfortunately, diversity and inclusion in the accounting profession is lacking. And, until we examine what causes it, and take conscious steps to fix it, we’re going to keep finding Mr. Bland behind the desk…covering six jobs, because there won’t be enough accountants to fill the vacancies.

The Accounting Profession’s Talent Shortage

The AICPA 2025 trends report found that there was a 12.4% increase in the number of accounting students; however, the year before, there was a 6.6% decline in graduates compared to prior years. This suggests that some progress has been made to increase the number of newcomers to the profession, but we still have work to do.

What more should we do? Should we go to college and career nights, handing out flyers and extolling the glories of debits and credits?

Although that could be fun (and just might convince one or two people to give the accounting major a second look), colleges typically spend time and effort recruiting for “hot” careers and majors. STEM careers get a lot of attention, but accounting is often included among business school majors and is not pushed as much as other mathematics-based professions.

Hidden Biases Keeping People Out

However, no amount of college night guest speakers will encourage people to enter the profession if they don’t feel welcome. Diversity and equity programs are winding down, often to the detriment of hiring practices. Many people feel that accounting is a profession dominated by white males (Mr. Bland, anyone?). It’s a hidden bias that can keep many talented young people from declaring an accounting major and progressing in a field that rewards talent and hard work.

Inclusion goes beyond the college experience. CPA Journal reports that students often felt corporate internship experiences were uncomfortable due to the lack of diversity among other corporate accountants. Feeling out of place, like you don’t belong, is often the motivation to change jobs or professions. The more people feel included and valued, the more likely they are to remain and contribute.

The Way Forward

I don’t have a magic wand to fix the accounting profession, although sometimes I wish I did. Instead, I’d like to offer a few words of encouragement to students considering a career in accounting.

First, this is a stable career. AI is offering great efficiencies, but a smart accountant must be behind the keyboard working with AI to get things done the right way. There will always be room for newcomers to this profession, with a good career path forward, advancement opportunities, and significant income potential.

Next, we need to consider diversity and inclusion in your hiring practices. Yes, DEI mandates were sunsetted by the current administration. That doesn’t mean you can’t encourage your hiring managers to be inclusive and seek candidates with diverse backgrounds and experience. It’s up to you, as leaders of your organizations, to speak to your HR department if you don’t see that happening and encourage them to include more diverse candidates in the hiring pool.

Build a truly inclusive culture at your organization. Provide visible role models for newcomers to the profession. Be welcoming, not just with words, but also with your actions.

We may not be able to solve the national talent shortage, but we can solve cultural problems within our own organizations. By helping people feel welcome, giving them a place at the table, and encouraging them to use their gifts, we can improve retention rates and make a dent in the accounting talent shortage.

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.

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.