Sage Fund Accounting, the accounting suite designed specifically for nonprofit organizations and government agencies, has been honored with the 2011 Campbell Award for Highest Customer Satisfaction.
Determined by an independent survey (1) conducted by the research firm Campbell Rinker, the award is based on the high proportion of Sage Fund Accounting customers who say they would recommend the product to others.
Sage 100 Fund Accounting is the only nonprofit accounting software to receive five consecutive Campbell Rinker awards for customer satisfaction.
“ The willingness of a customer to recommend a product to their peers is one of the single best measurements of product quality. The Campbell Award honors products that truly excel in this regard, and we congratulate Sage for this outstanding achievement.”
— Dirk Rinker, president of Campbell Rinker
(1) Survey included: Blackbaud's The Financial Edge, Serenic Navigator, AccuFund Accounting Suite, Microsoft Dynamics GP (formerly Microsoft Great Plains), and others
About Campbell Rinker
Campbell Rinker has provided market research to nonprofits and the companies that serve nonprofits since 1991 and is a member of the Council of American Survey Research Organizations (CASRO) and the Marketing Research Association (MRA). Questions and requests for Campbell Rinker can be sent through: www.campbellrinker.com/contact_us.html.
Failing to plan is planning to fail and while cliché; this is sometimes a hard-learned lesson to learn. Of course, you can always turn the phrase around – if you don’t begin with a vision of a desired outcome, set goals, or define your plan – it’s impossible to fail, right?
That’s certainly not the way to run a successful nonprofit fundraising event. Many steps and planning stages need to be identified and defined to ensure your event’s success. Depending on the complexity of the event, planning can be a year round effort or a couple of months.
If your organization is new to event fundraising, you may want to start with a small, less complex event to gain experience. The planning, management and execution of a successful event will give your organization the experience, skills, and confidence to move on to bigger and better events.
To begin speak to your organization’s stakeholders. Ask supporters what types of events they would be interested in attending with a simple survey. Include a field for them to answer whether they would be interested in attending or volunteering and an open field for event suggestions. Similarly poll your board members and staff. You never know where a good idea will come from. Second, evaluate event ideas determine if they fit with your organization’s mission and whether or not they will appeal to your larger community. Is your event idea unique? Is there space within the larger community calendar of events? Will it garner attention and support? Will people – prospective donors – be interested in attending?
Once you decide on the type of event, it’s important to define goals and outcome measures for the event. Think SMART Specific, Measurable, Attainable, Realistic, and Timely goals. Next, set a date and begin the process of figuring out how all the pieces of your event will fit together. You can print a sample event timeline from our new E-Book: Event Fundraising Best Practices here.
What does the future hold for Human Resource Management systems? The searching and predictions have come and gone and the future is here! Sage recently announced the complete integration between the
Sage Fund Accounting HR Management and
Employee Web Servicesmodules combined. This gives organizations the ability to get out of spreadsheets and lateral files and into true employee retention, engagement, and growth.
Five Benefits of the complete HR Management suite for Sage Fund Accounting:
- Full tracking of employee performance, credentials, complex leave and benefit plan administration as well as robust audit controls and security.
- An entirely web based employee and manager web portal which enables viewing, approving, and printing of documents including timesheets, pay stubs, and W2 details. Leave requests, approvals, and calendars of availability as well as messaging are also built in.
- Tax Forms and eFiling will take the pain and expense out of year-end tax form generation. Over 250 pre-filled federal and state forms are ready for review and submission (if the Sage Fund Accounting Payroll module is purchased).
- Built in compliance reporting for VET, FMLA, EEO and other regulatory reports will help your organization stay compliant and out of spreadsheets, while the optional Employee recruiting and training module can be used to attract and retain talent.
- Pick your Payroll! You can now utilize the HR and EWS modules with or without the Payroll module -- giving you ultimate flexibility.
Focus on people—not paperwork
With the HR and Employee Web Services modules for Sage Fund Accounting, small to mid-sized nonprofit and government organizations can enjoy a faster, more efficient system for managing employees, benefits, recruitment, and so much more! No matter what size organization you have, your needs can be met with this robust suite of products.
nfpAccounting Technologies, Inc. can help you make the future HR Management a reality for your organization. Contact us today and learn what the future holds for you.
Do you know why your organization did not receive the funds you were seeking in the last grant for which you applied? Is this your first grant proposal? Follow these simple tips to get the grant funding your organization needs to fulfi ll its mission:
- Be clear and specific. When you write the case statement or the abstract, it is essential that the reviewer understands the outcomesyour organization will reach when funding is granted. The mostsuccessful grant applicants are those who are able to instill a senseof validity in the effort and method in very straightforward terms.If a foundation or grantor can’t tell from your case statement whyit is important to fund you or how you are going to accomplish yourgoals, you probably won’t get funded.
- Be realistic. One of the most common things in grant applicationsis extremely ambitious goals with ambiguous plans to fulfi ll them.When you are reviewing stacks of applicants it’s very easy to eliminate an applicant based on goals that just seem unrealistic.For example, there have been grants for medical research wherethe program necessitates the participants are required to travel upwards of 30 miles each day one way for a 6 week period. It just is not realistic to expect participants to travel 60 miles 5 days a week, for 6 weeks straight. When you are writing your applications keep in mind that real people are reading them, and they want the best for your constituency too.
- Read all of the directions. This tip seems easy enough but it is critical that you follow the directions exactly as specifi ed. Don’t forget to include any details or items they request in the grant process. The quickest way to be disqualifi ed from the pool is to submit something incomplete.
- Know your funder. Who else have they funded in the past? What kind of projects are they interested in supporting? The better you know what they are looking for, the more likely you are to position your application to appeal to their interests.
- Peer review. If it’s at all possible, try to get more then one set of eyes on the grant application. It’s always a good idea to have others in your organization, board or perhaps even the population you are trying to serve, review the material. Others may notice gaps in the application that don’t seem obvious to you. Keep in mind, the grant reviewer may know little to nothing about your organization or your mission efforts. It’s great to have that fresh pair of eyes take a look before you fi nally submit it.
- Be proactive. Don’t wait till the last minute. It’s very clear which applications are thrown together at the last minute and which ones are prepared in a timely manner. It’s easy as a reviewer to infer that if the application was last minute the funding may be treated with that same regard.
Grant writing can be a long, tedious, and sometimes discouraging process, but the wins are well worth it. These are just a few tips, to consider along the way.
Learn more about Grant Management systems.
Major gifts make up a substantial portion of total giving at most organizations. They’re of a different magnitude from the typical gifts received; and they have the potential to make a significant impact.
Institutional advancement professionals and development officers must not only cultivate prospective relationships with major donors, they must also provide ongoing stewardship of donations, past and present. It is a massive responsibility to balance needs and priorities of your organization’s donor base.
This blog outlines the top 23 nonprofit fundraising ideas fund development officers keep in mind every day, but especially as they enter into their first days on a new job.
#1 – Know your audience
You must be able to successfully identify potential major donors. These are individuals who have both a personal interest in your organization and the financial means to give.
Finding the right prospects takes research and time. Development officers for smaller organizations might want to poll board members for their lists of prospects. Larger institutions typically have massive databases, and must strategically segment their lists to target the prospects most likely to give.
You can start with your favorite search engine for some brute-force researching or utilize some of the in-depth wealth research tools available in your constituent management system or online. Accessing the right web sites can provide insight on capacity, inclination, and motivation, so you can seek out the intersection of capacity and interest.
#2 – Use your scarce resources wisely
Just because an individual has a high affinity for your organization doesn’t necessarily mean they will have capacity to give immediately. Recent graduates, for example, usually fit into the high affinity/low capacity category when it comes to alumni giving. They are fiercely loyal, but cash poor, for now. Keeping them engaged is critical to long-term loyalty and interest in giving back.
#3 – Keep your pipeline full
Experienced fundraisers actively pursue prospects more likely to give immediately, while also cultivating potential future donors. It’s important to have prospects in every stage of the development cycle to ensure stable long-term funding.
#4 – Knowledge is a powerful ally
Every prospect has a story and it’s up to you to find that story. There are some important things to know about a prospect that may not seem obvious, for example:
- Who was their roommate in college?
- What sorority or fraternity were they in?
- Have they just gotten a new job? (Linked in would tell you that.)
- What are their kids’ interests?
- Do they give to other charities such as their local hospital, theater, etc.?
Understanding your prospects’ background builds stronger relationships and knowledge about your targets helps focus priorities. The more you know about a prospect, the better you’ll be able to identify high capacity targets for major gifts.
#5 – Understand their motives
What is the prospect’s affinity to your organization? What will motivate them to give? Better yet, what will motivate them to want to have a long-term relationship involving investment into your programs?
#6 – Nurture first, then solicit
The development cycle starts with getting the prospect’s attention; providing something that piques their interest; creating desire; and then motivating them to take action.
Consider these top conversation starters for discussing a major gift:
- Being asked by someone you know
- Volunteering with the institution
- Being asked by clergy
- Reading or hearing a news story
- Being asked at work
- Receiving a letter asking you to give
- Receiving a phone call
- Viewing an advertisement, in a printed publication or online
- Seeing a TV commercial
#7 – Get their attention
Your prospective donors are being bombarded by noise–from their business, from other charities clamoring for their attention, from the trials of everyday life, and more. Amplify your voice and your cause above the din of tweets, beeps, and emails by being personal and creating an exceptional donor experience.
#8 – Communicate benefits
What value does your organization bring to the potential donor? How does your organization differ from others? The key to successful engagement is demonstrating benefit, either directly to the donor, or indirectly via goodwill created by donation. Provide donors with reasons to champion your cause above others.
#9 – Be a great storyteller
Once you have the prospect’s attention, you must get their interest. Create a story showing the benefit of giving. Showcase your organization’s accomplishments and goals for the future, and create a connection linking your prospect’s past to the institution. Take the time to remind prospective donors of their history with your organization.
#10 – Create a sense of community
Highlight your ties to the community and what you’re doing on the home front. Demonstrate the benefits your cause brings to a donor’s community. And remember, community doesn’t have to be tied to location. Create a community based on interest; for example, sports, military veterans, or cancer survivors and their family members, etc.
#11 – Motivate giving
Major donors truly want to help the community, but they also want acknowledgement for their support. Recognize and reward them for their actions by establishing defined recognition plateaus. It’s possible a particular reward or incentive could “push” a donor into the next level of engagement. But, remember to be flexible, too. Never force a major donor into a prescribed giving campaign when it may limit the overall lifetime giving potential of that donor.
#12 – Cultivate interest in low affinity, high capacity prospects
It’s your job to find these types of donors and convince them to send a little piece of their money in your direction. This is a three-step process:
- Find the high net worth individuals.
- Learn which of these individuals make charitable donations.
- Create the story that flows their charitable dollars to your cause.
# 13 – Communicate need
Clearly communicate how you will use the funding for which you are asking. Answer this question: “What will donors’ money accomplish?” Provide the facts of what you do with a $1,000 donation, a $10,000 donation, and a $100,000 donation.
#14 – Don’t be sloppy
Savvy donors respond to careful attention to detail and a professional presentation. Even the formatting on your envelope can make a difference. Be a stickler for grammar, punctuation and appropriates titles.
#15 – Make it personal
Cultivate major gift prospects by involving them in the activities of the organization or inviting them to visit the organization. Don’t forget to show your appreciation with a small token or personal note.
#16 – Make the right ask
Be specific and actionable when you finally solicit your prospective major donor. If you’ve done your research on the individual, you should be able to push them right to their limit of giving, without scaring them away. Provide reasons why you’re asking for the specific amount and why you need it. Be flexible in both the type and timing of the donations you accept and always, always be gracious – whether or not the person agrees to give. You never want to burn bridges because the “no” of today might be tomorrow’s “yes.”
#17 – Discover untapped sources of support
Consider all the people who, over the years, have benefited from your organization (as students, alumni, educators, community supporters, etc.). Those people may now be in a position to give, but they simply haven't been effectively asked to contribute in a way that‘s meaningful for them.
#18 – Thank your donors
Make your donors feel special by recognizing their gift personally, openly, and honestly. It’s important for your donors to feel a sense of pride and satisfaction in supporting your cause – so recognize and thank each one. The options are endless: from press releases to tweets to plaques. You can’t thank your major donors enough.
#19 – Cultivate the ongoing relationship
Help your donors feel good about their donations. Regularly update them on your progress in the community. Invite them to special events, such as graduations and opening night galas.
#20 – Go full circle
Stewardship is one of the most important aspects of a fundraising professional’s career. Always keep prospects informed about what their donation accomplished. You must have concrete answers for where money is going and why it’s needed. Establish and maintain credibility with your donors by demonstrating the return you are getting on their investment. Specificity and clarity will help get major gift givers on board with your campaign.
#21 – Track your contact efforts
It’s important to maintain accurate records of who you’ve asked, what you asked them for and how they responded. Some institutions will say “if it’s not in the donor database, it didn’t really happen.” Although keeping track of every communication involves more effort on your part, it allows you to create a clear record of your interactions with the prospect. This is especially helpful when another development officer moves to a new job and you “inherit” their prospects. Having a full history of all their previous interactions with your team is a powerful asset.
#22 – Create raving fans
References from major donors, detailing their satisfaction in the results of their donations, can help turn skeptics into potential givers.
#23 – Stay positive
Despite a struggling economy, giving is at near-record levels, and the wealthiest individuals still tend to give the most. According to recent survey by Fidelity Charitable, “the majority of American donors (72 percent) plan to maintain or increase their level of charitable giving this year compared to last year. This number is up from 63 percent in 2010.”
Conclusion
Your major donors are your partners. Treat your major donors the way you would treat any great business partner. Provide tangible, local results from the work of your organization. Communicate with your major donors often about your organization and when they give, recognize them publicly. These basic, tried-and-true steps will lead to success.
If you’d like to learn more about how you can maximize Grand Funding, click here to download a free and informative webinar.
Special events, whether a black-tie gala, art festival, walk-a-thon, or neighborhood beautification day take time, planning and a budget. But who really owns the nonprofit budgeting process —the finance or development department?
For the finance office, it is as much about cash flow as it is about potential revenue. For the development office, it’s about soliciting underwriters and event sponsors, as well as having the money to secure the various pieces you need prior to the event. For both, it’s about planning.
Usually, things cost more than anticipated, and those sure-bet sponsors choose not to come on board—even though you have given them until the last minute. From event venues to catering, invitations to awards, all pricing varies according to the vendors and the demand. A detailed, comprehensive plan, including various scenarios, options and unexpected or hidden costs, will go a long way in determining the budget as well as the cash flow needs well in advance of the actual event.
In budgeting for an event, it is critical to have all the internal stakeholders, the finance and the development offices, brought together to collaborate on the budget. Some budgeting tips for special events include:
- Review of last year’s event budget, if applicable
- Review of potential sponsors, number of attendees, and other revenue generating opportunities, including a realistic goal of how much money is to be raised from the event (HINT: Be conservative – sometimes the best laid plans fail because of influences that are outside of the organization’s control.)
- Review of anticipated costs associated with the event (HINT: Budget liberally – again, unplanned costs do arise, and sometimes changes need to be made that incur increased expense. When a planned expense is donated as in-kind, you can celebrate and put the allocated monies to the bottom line.)
- Timing of payment for various vendors prior to and following the event
- Expectation of revenue pre-event, event, and post-event
- Determination of how the finance and development teams will communicate budget details and updates as well as manage this information.
Intuitively, both the finance and development offices need to track and record the financial details of the event. With fund accounting and fundraising systems that work together, information can be shared between the systems without the need for manual reconciliation. Flexibility within those systems allows you to customize fields specifically for the way your organization manages the event, and allows for comprehensive reporting once the event has taken place. With options for fund accounting Executive View Licensing, the financial office and the development office can collaborate real-time within the same financial budget, and update those shared budgets as expenses or revenue details change.
We hope these budgeting tips help your future special events go as smoothly as possible. Additionally, if you are interested in professional advice and assistance we offer multiple services to fill the gap between where you are and where you need to be with your financial accounting and back office processes.
No matter how large or small, planning, budgeting and managing special events are most successful when the fi nance and development offices work together, and have the systems in place to make the communication easy.
Being able to tell your organization’s story in a meaningful way can be done with effective financial reporting. A financial statement is similar to a story but is told with numbers. That being said, the financial statement author needs to think about their target audience when deciding what information should be conveyed. The type of audience should also help to determine the best formatting and display parameters that will provide the reader with the ability to quickly understand what message is being communicated through the financial report.
For example, a Balance Sheet often referred to as the Statement of Financial Position, will communicate information about the health of an organization at a fairly high level. The reader can see how much cash is on hand to pay bills in the near future or the total net assets that are available today. Without context this information is difficult to interpret. Nonprofits utilize the Statement of Financial Position to better communicate to their audience, whether that is their Board or even a prospective donor, by reporting their Net Assets by restrictions. The ideal Statement of Financial Position should be presented on one page. This allows the reader to easily identify the distribution of Net Assets by restriction, which is a key purpose for this report. Prior period information should always be included to provide trending statistics and allow the reader to see how your organization has changed over time. Has it grown? Has the total assets to liabilities improved? Has your organization invested in capital assets? This type of information should be clearly presented in the statement so the reader can quickly identify your organization’s financial story.
Now let’s look at a different audience – your internal report readers, otherwise known as program or department managers. The type of information they require is more granular yet must still be presented in a clear and concise fashion. The clearer the information the more meaningful the translation of the numbers will be for their purposes. How much budget remains as a percent to continue effective delivery of programs? Are personnel costs on track? Etc … Depending on the organization, managers may or may not have interest in and control over revenue information. Providing expenditure information to your managers with corresponding budget amounts and comparative data allows your team to make better decisions and therefore be more productive. One way to present expenditure and budget information is by categorizing expenditures and providing subtotals for the actual and budget. The manager can quickly determine their budget position by simply evaluating the data and forming their conclusion. The idea is to provide summary information in one page for quick reference or answers. By providing supplemental detail reports the manager can drill into variances if necessary. Financial statements should be thought of as chapters of a book, one chapter or statement does not tell the best story. Being able to provide a comprehensive report package comprised of cohesive cleanly prepared statements allows the reader to quickly read and understand the story being communicated.
Fund Accounting Reporting Tips
What to include in a Board Report Package:
- Statement of Financial Position (one page with prior period amounts)
- Statement of Revenue over Expenditures (combining by program or funding source, include ending net assets)
- Functional expenditures: Programs, Fundraising, Management & General
- Supporting Statements or schedule can include – Cash Flows
- Statements, charts and graphs, cash balances, top 10 expenditures, forecasts, financial notes or interpretation of the statements for the board
What to include in an Internal Manager Report Package:
- Prepare all reports by Function, Department, Activity, Location, etc
- Summary Expenditure Report – Current Period Actual, Current Period
- Budget, Percent Spent, Year to Date Actual, Year to Date Budget, Year to Date Percent Spent
- Summarize Expenditure Report by Category – Personnel Expenditures, Direct Costs, Indirect Costs
Trust is a precious commodity in the nonprofit sector - are you doing all you can to keep it?
Restrictions around the use of government grants continue to rise, and private foundations and corporations are asking organizations for specific measurable outcomes resulting from grant awards. Pressure is continually added by tightening federal regulations. There are talks of a possible requirement to add performance measures to the IRS Form 990, along with the chance of federal funding becoming subject to comply with OMB Circular A-133, thus requiring annual audits.
Compounded with stories of the misuse of funding grabbing headlines, the temperament of the donor community, although positive, is more cautious than in yester years. Not only is being accountable in aspects of your organization’s financial and program management an absolute necessity, but it is imperative now more than ever.
Accountability is not just the responsibility of the CFO or the Executive Director, but of all staff and board members who are involved in the financial management, fundraising, and program planning and implementation. Make sure money raised is being used for the purposes you outlined in your solicitations, and communicate it clearly and often to your donors. This can be as simple as sharing success stories in your donor newsletters or making your annual report available on your Web site, but also as complex as reporting on fulfilling grant restrictions, program outcomes, matching requirements, and the impact or difference made by your organization. At the end of the day, however, tangible proof, such as clear tracking of donor restrictions and funds spent from the finance office, will underscore the organization’s accountability and transparency, and will help to build a case for continuing and future support.
Accountability also means keeping the lines of communication open with your supporters through the good and the bad. During an AFP Meet the Funders workshop, grant-makers and donors expressed the desire for communication—especially when plans go awry. “It’s not an opportunity to take the support away,” said one participant. “It is an opportunity to learn what roadblocks the program or project is facing, and figure out how we can work together to overcome it.”
It is no secret that donors and the grant-making community network and talk. Your actions and communications can reinforce their decision to give to your organization and may help them bring others to the table. On the other hand, your actions and communications, or lack thereof, can create a divide that is hard to overcome. A study published by the Public Agenda found “once an organization became tainted in [donors’] minds, they never gave to that particular organization again.”
Part of being accountable is also to have the right infrastructure in place to assist with the reporting, tracking, and communications. Annual audits are a must, and being able to give auditors, grantors, and stakeholders a clear trail to verify the accuracy of financial statements and donor intention is critical. As you look for ways to satisfy the demands of outcome measurements, be sure that your accounting system not only tracks and reports outcome measurements on financial statements, but that it can also be used to budget outcome measurements for accurate forecasting. In terms of your organization’s effectiveness, information on outcome measurements can be factored into financial data and presented to external and internal constituents, showing a powerful snapshot of your accountability and program performance with the funds you are receiving.
Likewise, keeping donor information in a comprehensive system allows for acknowledgement of donations in a timely manner, storage of communication histories, usage of donor profiling, creation of reminders for following-up, and the personalization of communications with the programs and projects that energize your giving community.
At the end of the day, it’s the people in your organization, who are dedicated to your mission, that use these tools to demonstrate the accountability, transparency, and stewardship needed to keep the organization’s integrity intact—and keep your donors and grantors contributing to your cause.