SaaS for Nonprofits: Maximizing Impact with Technology
The landscape for nonprofits in 2023 is marked by uncertainty and financial challenges. The Federal Reserve’s relentless interest rate hikes, persistent inflation, and the unique paradox of layoffs amidst low unemployment have combined to create a pressing concern for nonprofit organizations – dwindling funding. In this environment, nonprofits must strategize how to allocate their resources wisely to continue their vital missions.
Our Sage Intacct 2023 Non-profit Technology Trends Report, based on a survey of over 600 nonprofit finance leaders spanning various sectors, including human services, education, healthcare, and faith-based organizations, reveals that these leaders are preparing for a significant impact due to economic uncertainty. Anticipated consequences include reduced operational spending (56%), lower program spending (48%), and a heightened demand for services (37%). Encouragingly, nearly a quarter of respondents expect an increase in grant funding to address these economic challenges.
Moreover, the labor market faces its own set of challenges, with over 45 million American workers quitting their jobs in 2021. This mass exodus, driven by a quest for a better work-life balance, increased compensation, and stronger company cultures, has morphed into a workforce crisis, as highlighted by the Council of Nonprofits. Staffing shortages are a top external frustration faced by nonprofit leaders in 2023.
In these challenging times, visibility emerges as a watchword for nonprofit CFOs. Whether it’s tracking donations, service utilization rates, or other key performance indicators, the common thread is clear – nonprofits need fast and accurate insights to identify and seize opportunities that maximize their mission’s impact. Lacking this capability makes organizations slow to respond and vulnerable to compliance issues.
However, with the right tools in place, nonprofits can demonstrate excellent stewardship and appeal to donors effectively, particularly in challenging circumstances. Technology is the key to delivering this visibility and productivity.
The 2023 Non-profit Technology Trends Report reveals that most nonprofits use QuickBooks (43%) for financial management, followed by Sage Intacct and MIP Fund Accounting. Yet, 72% of them (up from 63% last year) prioritize automated financial reporting, followed by the ability to integrate with other systems. These features are notably absent from single-user bookkeeping apps. The most desired outcomes from financial reporting are:
- Eliminating manual reporting dependent on Microsoft Excel.
- Integrating with critical business systems to gain greater visibility across the organization.
- Combining financial and statistical data to create outcome metrics that tell a more compelling story to encourage greater funding.
Two case studies illustrate how technology can drive significant savings and expansion. Vitamin Angels, a public-health nonprofit, found $200,000 in logistical savings, allowing them to reach an additional 800,000 undernourished pregnant women and children. Similarly, Faith Promise Church, a fast-growing congregation, doubled in size while saving $85,000 annually in bookkeeping costs.
Moreover, digital transformation and technology can also positively impact the second-largest concern of nonprofit CFOs – hiring and retention. According to our survey, 67% of respondents are less likely to accept a position at an organization that relies on outdated on-premises technology, while 74% are more likely to accept a position at an organization that has adopted modern cloud-based tech.
The follow-on benefit of adopting technology is the productivity gains that ripple throughout the organization. In a rapidly evolving world, nonprofits often find themselves swamped with essential but mundane tactical tasks, leaving little time for strategic planning. However, for nonprofits to thrive in uncertain times, finance leaders must allocate dedicated time to strategic planning.
To strike a balance between tactical and strategic work, nonprofit leaders can:
- Set goals and think big: Start with a strategic plan that aligns with your mission.
- Delegate: Trust your team and delegate tactical work to free up time.
- Leverage modern technology: Automate routine accounting tasks using a cloud accounting solution to streamline your financial processes.
Nonprofits today face a host of challenges and opportunities, and these findings closely align with the concerns and priorities of nonprofits across various sectors. Enhanced visibility and automation not only lead to better decision-making but also contribute to better performance and job satisfaction.
If you’re a nonprofit finance leader aiming to transition from being a scorekeeper to a strategic partner in your organization’s mission, it’s crucial to do more than capture granular financial data. You need to leverage advanced technology to gain visibility into financial and operational metrics, ultimately paving the way for an organizational culture that embraces intelligence and planning, and attracts and retains top performers who can truly make a difference.
As we’ve discussed the importance of SaaS tools for nonprofits, it’s essential to have access to a centralized platform that provides comprehensive information about these tools. This is where Subscribed.FYI comes in. Their mission to empower freelancers, agencies, and teams aligns with the goals of nonprofits, as they aim to simplify decision-making and enhance productivity. With their platform, you can compare, evaluate, and select the best SaaS options for your specific requirements, ultimately maximizing the impact of technology on your nonprofit organization.
In addition, Subscribed.FYI Deals offers free member-only deals on 100+ SaaS tools, allowing you to unlock savings of $100,000+ per year. This is a valuable resource for nonprofits looking to maximize their impact while managing their expenses effectively. By utilizing Subscribed.FYI, nonprofits can streamline their subscription management, track expenses, and access valuable insights to make informed decisions about SaaS tools. With the ability to compare various SaaS tools side by side and access comprehensive information, Subscribed.FYI is a valuable resource for nonprofits seeking to leverage technology for maximum impact.
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