In the last several years, demand for nonprofit services has greatly increased and often exceeds capacity. Nonprofits want to meet the needs of their constituency while increasing impact. The challenge comes in how to effectively scale for growth and impact. With the dynamic nature of the nonprofit environment, how are nonprofits adapting to meet the needs?
We’re seeing more mergers between nonprofits as well as new partnerships and collaborations. Some of these partnerships are with social enterprise organizations, some with other nonprofits, and others with community entities. With increased competition for funding and donors, nonprofits are learning to partner, narrow the focus of their mission, and adopt critical tools to ensure mission success and growth.
While growing to broaden the scope of your mission is a very good thing, it also brings new challenges. You have multiple funding streams, demand for deeper visibility, more grantor requirements, and increased compliance and reporting requirements. You may add new locations, programs or initiatives. It’s vital to plan for your growth and your expansion beyond the startup mode. Most nonprofit organizations start out utilizing small business tools to manage the organization. Once growth and expansion starts to kicks in, nonprofit organizations begin to experience the pains and limitations of ‘startup’ tools and resources.
In my last two posts, I shared information with you related to outcome measures and funding diversity. These two areas are critical as you plan and prepare for growth. Once you start tracking and measuring outcomes and increasing the diversity of your funding – you will quickly see the need for a best in class financial management solution - that will allow you to leverage modern technology to strengthen your visibility, transparency, automation, efficiency – and of course – your stewardship.
I want to share a resource with you -- to give you an inside view on how modern financial management resources can help your organization evolve and scale for growth. Nikki Jones, Director of Finance and Admin for the Healthcare Businesswomen’s Association, shares her experience with Intacct and how it allowed her to accommodate significant organizational growth. Check out this short video to get an idea of the types of benefits you can expect with a best in class financial management solution.
As your organization starts to thrive and grow, don’t think it will just happen on its own. Plan and build your strategy to accommodate the growth in a sustainable way. Stanford Social Innovation Review has published a great series on developing a common framework for nonprofits to scale for impact. This will give you a great roadmap as you plan for growth and impact.
Nonprofits need the leverage and benefits that modern, best in class fund accounting affords. Whether through automation and visibility, or transparency and reporting – make sure that you equip your nonprofit with the tools that will allow it to thrive, grow, and maximize impact.
Questions or comments regarding scaling for impact and growth? Please leave a comment below. Be sure to learn more about how Intacct helps nonprofit organizations.
I hope you enjoyed the post and found the information helpful. Check back soon for the final post in our series, where we'll look at automating your processes.