Nonprofit – Page 5 – Beck & Company

Nonprofit Changes Coming Following Updated FASB Accounting Standards

In an effort to increase transparency and continuity in the preparation of financial statements, the Financial Accounting Standards Board (FASB) has proposed significant changes for nonprofits. In the past 20 years, generally accepted accounting practices (GAAP) have not clearly specified a way of reporting performance. That is all going to change. Nonprofits can be optimistic that these changes will have great benefits for them. They will allow nonprofit organizations to become more comparable, generating easier-to-interpret financial statements that will aid in the evaluation of financial statements for the purposes of obtaining stakeholders and loans.

Changes to net asset classification

The proposed Accounting Standard Update (ASU) changes the nonprofit accounting requirement for what information must be presented in the statement of financial position. The current three classes of net assets (unrestricted, temporarily restricted, and permanently restricted) will now be reduced to two classes of net assets (net assets with donor restrictions and net assets without donor restrictions). This change is intended to simplify financial reporting.

In addition, the FASB has revised how underwater donor restricted endowment funds are to be classified. They believe it is confusing to classify the spending from underwater endowments as unrestricted, and thus, the FASB has proposed that underwater amounts be classified in net assets with donor restrictions. The FASB is also now requiring disclosure of the combined amount of funds that are underwater and the original endowment amount, along with any rules or restrictions on spending from such funds.

Statement of activities

Along with the changes to net asset classification, a corresponding change to the statement of activities has been proposed. Now, all nonprofits are required to report income or losses from operating and non-operating activities separately. This is because certain non-operating activities, like investment earnings or losses, can affect the operating bottom line. The FASB believes this will help to clearly show both income and costs that are related to accomplishing the nonprofit’s mission.

Presentation of Cash Flow

Changes to the statement of cash flows have been proposed in order to provide more useful information to key stakeholders on the overall operating performance of the nonprofit. First, the board is proposing the use of the “direct method” of reporting cash flows from operating activities. The second change will realign the reporting of certain items to be consistent with how items in the statement of activities are being reported. Items such as operating, financing, and investing categories will be affected. The FASB believes these changes will result in easier-to-read financial statements which will prove to be more useful for the average user of financial statements.

Assessment of liquidity

The FASB has also proposed changes they hope will result in a clearer picture to stakeholders of an organization’s liquidity. Donor-imposed restrictions and confusion about how they affect the availability of assets have caused a lack of clarity regarding the assessment of liquidity. The proposal requires both qualitative and quantitative information regarding the liquidity of assets and cash demands as of the reporting date. Along with the changes to net assets, classification of this information should allow users to assess the liquidity risk of the nonprofit.

Impacts

As with any change, an investment of time for nonprofits and their accountants will be necessary to implement the required changes. The FASB’s proposal will allow stakeholders to better examine financial performance as well as the need for funding and overall stewardship of donor funds. In the end, the nonprofit should experience significant benefits from the extra work as better information is provided to decision makers

At Beck and Company Certified Public Accountants and Business Advisors, we would love to be of service to you as you consider implementing these required changes for your organization. We are a certified public accounting firm serving the Greater Washington D. C. metropolitan area with clients also along the Eastern Seaboard. Our firm has been built upon a tradition of service, technical expertise, and creative thinking. Our services are highly personalized, cost effective, accurate, and dependable. Our commitment to excellence is demonstrated in our team’s understanding of your business and personal financial objectives and then delivering innovative solutions to achieve them.

Accounting For Corporate Sponsorships

Many nonprofits receive donations from corporations wanting to support their endeavors. These “corporate sponsorships” have been in question by the IRS as to whether or not they would be subject to certain taxes. The IRS released regulations concerning these corporate sponsorships in 2002 prompted by several rulings in court cases. The core of these rulings identify whether donations will be considered “corporate sponsorships” which are excluded from unrelated business income or considered advertising which would be subject to unrelated business income tax. The IRS would see advertising to be a “substantial return benefit”.

The bottom line is an exemption from the unrelated business income tax (UBIT) for donations that qualify as a corporate sponsorship. Income generating activities for Exempt organizations such as a trade or business which is regularly carried on; and unrelated to their exempt purposes will be subject to UBIT.

However, exclusions from UBIT do exist such as “corporate sponsorships” and provide guidelines for activates and/or actions for which taxes will not be incurred. The final rulings declared six elements of corporate sponsorship that would not be considered “substantial return benefits”.

Listing the name, logo, or product line of the sponsor;
Awarding exclusive sponsorship
Providing logos or slogans that do not contain any qualitative language or comparative description of the products;
Listing the payer’s locations, addresses, phone numbers, and Internet addresses;
Providing value-neutral descriptions of the sponsor’s product display; and
Listing the sponsor’s brands or trade names.

On the other hand, there are also four things that would be deemed substantial return benefits, including “advertising.” They are:

Advertising;
Designating a sponsor as an exclusive provider;
Providing facilities, services, or other privileges to the sponsor unless they are of “insubstantial value;” and
Granting either exclusive or nonexclusive rights to use the sponsor’s intangible asset (e.g., name or logo).

Let’s take a look at a hypothetical situation. The local little league, an NPO considered exempt is given a $2,000 donation from the local sporting goods store. In return a banner is created to display on the outfield fence of the home field. This banner contains the name of the store, its logo, and website address.

According to the regulations this banner would not cause the sporting goods store to be taxed and would qualify as a “corporate sponsorship”.

There are a few areas within the rules that can be tricky and cause problems:

Substantial return benefits
Services provided
Internet issues

Substantial Return Benefits

The question of what is a substantial benefit can cause some confusion. According to the rule, if a sponsor receives anything in return for their donation it must have a value of 2% or less of the sponsorship payment. Should its market value be more than 2% then the entire value of the return benefit would be subject to UBIT.

Example 2:

A music teacher donates $500 to the local community theater. The teacher receives a notation in the program with her name and website listed. In addition she receives 2 season tickets to the three productions for that year. The market value of these tickets is $120. Given that the value of the tickets is more than 2% of the $500 donation, the $120 “return benefit” would be considered the value of the advertising and subject to UBIT.

Services Provided

Should a sponsor make a donation and in return require the beneficiary to provide a service, the value of that service may be considered return benefit and be subject to UBIT. Once the services are rendered, the fair market value of those services would be considered unrelated business income. It can be tricky to accurately assess the value of said services.

Example 3:

Remember the little league team from Example 1? Let’s say that same situation occurred however in addition to the banner the sporting goods store agrees to provide the entire little league team with one specialty coaching session. The fair market value of the coaching session is $500.

Because services are required as part of the sponsorship agreement, the $500 fair market value of the training received is considered unrelated business income.

Internet Issues

Although the IRS has not released specific protocol in the area of internet promotion it is important to also consider the following. Should a sponsor require a hyperlink to their website is included on the organization’s website you will need to be sure unrelated business income is not generated. Up until now hyperlinks to a sponsor’s website are not supposed to result in unrelated business income providing the tax-exempt organization is not endorsing the sponsor’s products.

Example 4:

The same little league from Example 1 includes the sporting goods store logo on its team website, along with a hyperlinked logo to the sponsor’s website. As long as the team website only includes the sponsor’s logo with a link to the website – and does not have any promotional language or endorsements no unrelated business income should be generated from the linked logo.

Recent Tax Reform

In early 2014, the House Ways and Means committee released a draft with several proposed changes to the tax code. This draft includes revisions specifically to how sponsorships are treated for UBIT purposes. Based on the proposal should an organization use the name or logo of a sponsor’s produce line, then that sponsor’s donation would be considered unrelated trade or business income.

It is expected more information will be provided regarding these potential changes in the coming year. Here at Beck & Company, Certified Public Accountants and Business Advisors, we want to help you. We are an accounting and consulting firm delivering specialized expertise, creative thinking, and unsurpassed service to ensure that our clients’ financial endeavors flourish. Ultimately we want to see your nonprofit reach its goals and we would love to help you. Contact us to learn more.

Best Practices For Planning Your Nonprofit Budget – part 2

Having a budget is essential for any company or individual who desires to have better control over their finances. The process by which that budget is developed is also important. Last week we looked a few overarching components that are essential to have in place before you begin the budgeting process. This week we will take a deeper look into key documentation and steps needed to complete the budget process.

Keep in mind that your organization’s mission and vision should drive the budgeting decisions along with fiscal accountability. A great budgeting process will include the input of those ultimately responsible for executing the company’s mission in conjunction with the finance team and senior staff. Identifying fixed costs and known revenue along with incorporating a plan for the year’s initiatives will be the primary data used to get started.

Follow these steps to develop a good budgeting process:

Document the process.

Put your budget process in writing. Doing this creates a measurable tool to reference as you go along. Having steps and checklists will keep the team accountable and productive throughout the planning. Additionally as the process evolves and changes from year to year, be sure to maintain current notes for reference in future planning seasons.

Identify stakeholders and assign the planning committee.

The finance team and senior staff will naturally play a significant role in developing the budget, but additional staff members whose responsibility is to be accountable to the budget should also play a role. Inviting the team to weigh-in builds buy-in and allows relevant feedback which could prove invaluable to creating an accurate budget. At minimum be sure to include a time period where other staff members are asked to review and speak into the budget in the draft stages.

Get out the calendar.

The early bird gets the worm – this is true in establishing the budget as well. Having a budget approved less than 30 days before the beginning of the fiscal year could severely compromise the success of the year’s goals. At the very least aim for budget approval 60 days before the new fiscal year begins and if possible complete it even earlier. Consider your natural rhythms and take advantage of non-peak seasons to work on it when staff and volunteers have ample time to focus on the numbers.

Assign tasks and a timeline.

As you are building the budget process define tasks and assign deadlines. Oftentimes multiple people will have responsibility over a line item – regardless you want to choose one person to be accountable for the task. Having a single person responsible for the task will increase the likeliness of it getting done and on time.

Match the financial statement to the chart of accounts.

Ensure that line items from the financial statements and charts of accounts are the same. This will eliminate guesswork from your administrative staff when matching the budget and actuals. Particularly where expenses are concerned when the financial statement does not have a corresponding line item within the budget it can result in mistakes or overages in line item balances.

Work the plan.

After carefully creating the detailed budget, the next step is to implement the plan. This may sound obvious, but setting clear expectations for how the budget should be executed is as if not more important.

At Beck and Company Certified Public Accountants and Business Advisers our Nonprofit Services team is committed to assist you with your back-office accounting and financial needs so you can focus on your mission. Contact us to learn more about our nonprofit specialists provide professional advice and assistance in a number of areas including business planning and budgeting.

Best Practices For Planning Your Nonprofit Budget – part 1

Top performing nonprofit organizations large and small have one thing in common, they are continually planning for their success. Creating a budget is a huge part of a successful plan, and it’s a tool that aids in the implementation of your organizations mission. When both management and your board of directions have this tool they are able to sufficiently oversee your organization’s financial health.

Having an operating budget approved in advance of the beginning of the fiscal year is a common best practice. Often times, in order to achieve this goal you must begin the process at least three months prior to year-end. In this blog we will address some general tips to help increase the effectiveness of your budgeting process. If you’ve already begun this will be a helpful tool to measure your current progress. For those of you that have yet to get started, now is a great time to begin.

Having a budget that actually works requires a little time and energy devoted to development and implementation and should include the following components:

Clearly defined and itemized objectives:

Most likely you have multiple projects and programs planned throughout the year. Each one should have its own budget and then once those have been completed, they should be compiled to complete the overarching operating budget.

Having defined budgets for each project allows you to see areas that may require additional consideration so that you can fully understand the financial implications of each objective and how it works together with the overall goal of the organization.

Clearly defined time period.

Although your budget will likely cover a one year period or fiscal year it is also helpful to further divide the budget into smaller portions such as months or quarters. In so doing, you will have the ability to be proactive with any variance as the year goes on. If you find yourself overspending in a particular quarter you will have the benefit of making necessary adjustments in the remaining quarters. This also provides you with a great tool to reflect on at years end and use to strategize for the future.

Realistic expectations.

Having a realistic estimate of revenue and expenditures is so important. All too often, expenses are underestimated which leads to overspending and improper allocation of resources. When this happens the budget fails to be a useful tool for your organization. Be sure to use last year’s actual numbers coupled with future predictions. Take the time to truly analyze expenses and income to help you create a budget that is based on realistic expectations rather than assumptions.

In addition it can be helpful to have a plan “B” with your board of directors in the event that something does not go according to plan you know exactly how you will handle it. For example, which initiatives can be bumped to next year or executed using a smaller budget.

Measurable goals.

Create your budget based on the same accounting method with which your books are kept and monitored. Doing so allows you to compare the predicted budget against actual income and expenses as they happen. When variances arrive, which is inevitable you must have the flexibility to make adjustments and address cash shortages and/or inflated expenses. Maintaining your budget this way will allow you to assess and correct your budget as needed, while flexibility will enable you to alter your budget when necessary.

At the end of the day the most important part to planning your budget is to ensure that you were able to move forward the mission of your organization. Keeping these helpful tips in mind as you begin the budget planning process will set your organization up for success.

In our next blog we will get into the budget process in further detail. Here at Beck and Company Certified Public Accountants and Business Advisers we are committed to assist you with your back-office accounting and financial needs so you can focus on your mission. Contact us to learn more about our planning and budgeting services.

Nonprofits Can Reap the Benefits of Cloud Computing

Miriam Webster defines Cloud Computing as the practice of storing regularly used computer data on multiple servers that can be accessed through the Internet. Contrary to popular belief this isn’t a new concept at all. In fact, the idea to combine hardware and software as a service dates back to the early 1960s. And the reality of such a service exists today. Cloud accounting is another tool for nonprofits to take advantage of as they pursue the vision and mission of their organization. Cloud computing can help by streamlining processes and making information readily available to its users.

Businesses are looking to the cloud to drive business transformation across the enterprise. They are looking for new ways to engage their clients in a digital economy and new ways to engage their employees to increase productivity and employee satisfaction. Employees today expect a mobile enabled work environment to connect with their digital savvy customers. Take a look at some of the many benefits of cloud computing for nonprofits.

Utilizing cloud storage saves time and money enabling you to grow as fast as your business without leaving you with the expense of equipment and staff in a downturn season.
Centralized access to data and reports means more efficient processes, easier telecommuting and less time wasted waiting for information stored on an individual’s hard drive
Ever changing technology mandates a sizable budget towards upgrades and repairs which can be avoided with cloud computing services
No more concerns about storage space or capacity with almost unlimited amounts available on the cloud
Rest assured that your data is backed on the cloud. Additionally your service provider will be skilled enough to handle recovery of information
Handpick the services that you need and don’t worry about software integration as this generally occurs automatically on the cloud.
No waiting! Cloud computing offers quick deployment once you decide to move in this direction.

Another benefit to moving to cloud technology is the flexibility to take on new projects. The availability of on-demand cloud resources allows new configurations to be set up and running in a matter of hours. And because you are partnering with a service you will only pay for the time that is actually used towards expanding your business tools. We know the biggest drawback to taking ground in a new territory is time and money, or the lack thereof. However, on-demand cloud resources could be the key to unlocking doors for your nonprofit.

Benefits aside there are still rainy day risks involved with cloud driven solutions. Confidentiality and security are among the top two risks facing organizations today. Some of this concern may stem from not being able to physically see the machine housing your data. In order to mitigate the risks be sure to do your due diligence when selecting a service provider. Be sure of their use of security tools including virus and hacker protection. In addition, hesitation may come from fear of change to well-known processes. Remember vision leaks. Communicate the benefits of the transition to the team – specifically time saving benefits such as fewer hours spent commuting to the office to obtain files that will be made available at the touch of a button.

As you adopt cloud technology it is important to look at how your business processes and technologies work together to ensure optimal results. Here at Beck & Company’s Certified Public Accountants and Business Advisors we want to help you succeed. Contact us today to see how a cloud computing solution can help advance the mission of your nonprofit organization.

Top 8 Reasons To Take Your Nonprofit Budget To The Cloud

Do you pull your hair out at board meetings trying to read the tiny print on an overpopulated excel spreadsheet? Do you dread the line item on the agenda dedicated to budget? You are not alone – many board members find this task frustrating as they try to make sense of poorly managed Quickbooks reports and line items that just don’t always make sense. It can be difficult to even discern if a budgeted line item is actually financially healthy for a nonprofit. These types of budgets fail to be useful as an ongoing solution.

While it may be frustrating it is required by the U.S. government to keep an approved annual budget on file. And, that budget must then be reviewed at monthly board meetings. Although it may feel like the rule exists to frustrate and confuse you it is not. Having a working, well developed and managed budget provides tons of important values to your nonprofit – particularly when the budget process is simple and user friendly.

If you’re like most nonprofits the members of your board are successful and busy people. They believe in your organization and want to contribute their unique skills to help you accomplish your mission. Imagine the possibilities if those same people could review the budget on an ongoing basis online? They could be empowered to…

Analyze predictions and compare them to actual costs.
Show up to meetings with ideas for improvement.
Spend time on the cause at hand rather than trying to decipher code.

Let’s face it – who wants to spend their precious time looking backwards when you can take steps forward? This is all possible with the right tools and using software designed to help you budget with ease is a great place to start.

Although there are many great online budgeting tools available one solution we have found extremely useful for nonprofits is Adaptive Insights. This cloud software makes it easy to move beyond the spreadsheet nightmare without the cost and complexity associated with traditional applications.

There are multiple benefits we have seen from customers using cloud budgeting software. Below are the top 8 that we wanted to highlight:

Dramatically reduce budgeting and forecasting cycle times-by up to 90%
Simplify and standardize data collection across the organization
Decrease errors and improve accuracy by eliminating broken links and formulas
Deliver more complete and frequent forecasts, including rolling forecasts
Enable timely and thorough what-if analysis
Establish one version of the truth
Make faster, more informed decisions
Enhance collaboration with, and ownership by, department managers

When a person decides to support your business with their hard earned money they most certainly want to know where that money is going. People don’t part with their cash carelessly. Your donors give because they believe in the cause. Being able to show them that their donations served a worthy purpose is essential. When you have a good budgeting tool that is easy to use and organize, finding this information is easy and makes board meetings so much more productive.

We know that implementing new budgeting software can be difficult. At Beck & Company, Certified Public Accountants and Business Advisors, we are an accounting and consulting firm delivering specialized expertise, creative thinking, and unsurpassed service to ensure that our clients’ financial endeavors flourish. We want to see you spend your time where your time is most valuable, working towards the vision and mission of your NPO. Let us help you manage your budgeting process so you don’t have to. If your organization is looking for ways to improve your accounting functions and reduce the time you spend managing your back-office, our nonprofit client accounting services may be the answer. Contact us today for a free consultation and see how we can help you reach your goals.

Important Tax Forms to Complete this Summer

It isn’t just April 15th that is an important date for taxes. There are deadlines for various forms and tax documents throughout the entire year that individuals and businesses need to be aware of. For this upcoming summer in particular, you will need to be aware of two important forms and due dates. These are the Foreign Bank and Financial Accounts (FBAR) forms that are due on June 30, 2015, and the Form 5500 series returns for employee benefit plans for calendar year employers that are due on July 31, 2015. Let’s take a closer look at what these forms are and what they involve. Most of all, be sure to keep the important filing deadlines in mind.

Report of Foreign Bank and Financial Accounts (FBAR)

If you, as a United States person, had interest in a foreign financial account or signature authority over a foreign financial account (including bank or brokerage accounts, mutual funds, trusts, and other foreign financial accounts) at any time during the last calendar year, you likely are required to file the FBAR. A United States person includes U.S. citizens, U.S. residents, entities, and trusts/estates formed under United States laws. According to regulations, if the aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year, you must file an FBAR. For FBAR filing purposes, even an LLC is required to file an FBAR report with interest in or signature authority over a foreign financial account. Please note that you may be required to report even if your foreign account did not generate any income.

The FBAR must be filed electronically with FinCEN. This form is not filed with income tax returns and must be RECEIVED by the Department of the Treasury on or before June 30th. No extensions are granted for the FBAR, and postmarks are not considered evidence of timely filing.

Form 5500 Series Returns for Employee Benefit Plans

The Internal Revenue Service (IRS), the Department of Labor (DOL) Employee Benefits Security Administration (EBSA), and the Pension Benefit Guaranty Corporation jointly require nearly all employee benefit plans to file some version (Form 5500, Form 5500-SF, Form 5500-EZ, etc.) of the Form 5500 report each year for employee benefit plans. This satisfies annual reporting requirements. This form reports profit sharing or money purchase pension plans, individual 401(k), and ERISA 403(b) plans. The version of the form that must be completed depends on the number of plan participants and the type of plan. These forms are the annual returns/reports of employee or small employee benefit plan forms. The return must be filed with the EBSA by the last day of the seventh month after the end of the plan year that began in 2014. For calendar year plans, this year’s filing due date is July 31, 2015.

Beck and Company Certified Public Accountants and Business Advisors know that tax documents and forms such as the FBAR and the Form 5500 are certainly complicated and can be confusing. It can even be tricky to know if they are required to be filed and which version needs to be filed, if required. The good news is that you don’t have to figure this all out alone. Beck and Company CPAs offer a large variety of tax services including tax planning and preparation to meet your needs. For more information about our tax consulting services, visit here.

Contact us here at Beck and Company CPAs if we can be of assistance to you or help you as you fill out these summer tax forms. We are happy to answer questions you may have about the forms and filing as well.

Setting your Nonprofit Organization Apart: Where Do Your Commitments Lie?

It is undeniable that you want your nonprofit organization to be as successful as possible, but do you really know what that takes? It can be easy, almost too easy, to simply do what has always been done at your organization instead of trying to be the best you can be and set yourselves apart from the pack. Too often, nonprofits do what they have always done instead of being innovative leaders themselves. Don’t let the success of your organization be robbed by a lack of initiative and best practices to simply maintain what has always been done and what is comfortable.

If you agree that you want to be as successful as possible as a nonprofit, that some things will need to be developed instead of staying the same in order to get there, and that you want to separate yourselves from the identity of “surviving” with acceptable practices to “thriving,” how do you do this? It starts by having a true focus on so much more than just day-to-day operations and tasks. It stems from a focus on people.

Developing the Right Focus on People instead of Operations

Let’s take it a step further and consider if your organization really does even focus at all beyond the day-to-day operations. Should your focus just be on routines and practices or should there be more of a focus on the people? Have you considered the people you are trying to reach and the people trying to make this outreach possible by working for your organization? This is an important starting point to evaluate your priorities and where your focus actually lies. It takes being focused on your mission and its constituents and helping your staff to be successful in these efforts.

If the focus of your organization should be on the mission/constituents and staff, you need to evaluate how they currently are being reached and how they are feeling. Let’s take a closer look at how to evaluate this by using some reflection questions you can ask yourself. The reality is that these questions should highlight if you are keeping your commitments to these groups because keeping commitments is essential to success.

Questions to ask yourself regarding those you are trying to reach based on your mission (your nonprofit constituents):

Are we meeting the needs we said we would meet or failing to provide what was promised?
Are constituents satisfied or disgruntled?
Does our mission come across to our constituents in how we act upon it or not?
Do constituents feel comfortable interacting with staff members and that their needs are being understood and responded to?

Questions to ask yourself regarding your organization’s staff:

Are we keeping promises made to our staff?
Are staff members feeling like they are being taken for granted, or are they appreciated?
Are staff needs being met by the organization to the point that they can truly focus on meeting the needs of others—of the nonprofit constituents being served?
Are staff members treating constituents well?
Are staff members bought in to the mission?
Are staff members equipped with the resources and training they need or not?

As Beck and Company Certified Public Accountants and Business Advisors, we realize just how much goes into being successful as a nonprofit. This is so much more than just day-to-day operations but requires pouring time, energy, and resources into the people serving and being served by the nonprofit. That is why we are here to help. You can allow yourself to focus on your mission and the important people involved with your nonprofit more if you have less to focus on in terms of the financial side of daily operations. We would be happy to assist you with your auditing, accounting, and overall financial needs. For more information on the variety of nonprofit services we offer including CFO, controllership, and accounting services, visit here.

Contact Beck and Company CPAs to find out more about helping your nonprofit to be successful and how we can help you achieve this by meeting your auditing and accounting needs.

Engage your Nonprofit Constituents More with Cloud Computing

Nonprofit organizations are far more likely to use Cloud computing technology now than they were even just a few short years ago. The Cloud enables your organization to have a flexible and mobile work environment, and that’s leading to higher employee satisfaction and productivity. The Cloud is an important way to better connect staff and improve interaction with nonprofit constituents.

Over the past several weeks, we have looked at the need for your nonprofit to consider updating to a financial reporting solution in the Cloud, what being Cloud-based means, the important features offered through Cloud solutions, and how the Cloud is beneficial in addressing many challenges that organizations face all the time. To learn more about these benefits that solve issues for nonprofits through Cloud solutions, visit here.

The Cloud offers so many benefits to nonprofits including driving cost efficiencies. It also encourages a flexible and mobile environment for staff to work in that gives them the access, experience, and richness they want. Not only that, but Cloud computing increases productivity, satisfaction, and flexibility that keep staff happy even with the endless demands they face as a nonprofit.

Ultimately, these staff benefits of using the Cloud funnel down to allowing them to engage more with the people and purpose behind your nonprofit mission. That is what we, the Beck and Company Certified Public Accountants and Business Advisors, ultimately desire for your nonprofit and will do what it takes to help you achieve engagement and success as an organization. For starters, you’ll need a Cloud computing system that offers these benefits and consultations to help you understand, implement, and best use it. We offer technology consulting services for this purpose. In addition, we desire to partner with you and help with the financial and accounting aspects of your organization in order to help you stay focused on its mission. Therefore, we would be happy to conduct your nonprofit financial audits to give you the information you need to keep accounting practices functioning as they should be to further your success.

Now, let’s take a closer look at how your organization can maximize success in Cloud transformation initiatives that lead to engagement with nonprofit constituents across the board (staff, people benefitting from your nonprofit services, Board of Director members, etc.):

Make the transformation and transition to the Cloud a continuous process. Cloud computing adoption should not be viewed as another project but instead as a journey that spans from strategy through execution.
Drive the transition to Cloud computing from the top down. Directors and board members should manage the decisions and processes that make up the transformation/transition and guide strategic decisions that are then shared with the staff and ultimately benefit those the nonprofit reaches.
Focus on strong leadership and engagement. Organizational alignment is important to managing the change. Focus on getting buy-in from staff and support of constituents.
Collaborate. Nonprofit staff and IT consultants should collaborate to help embed change into every aspect of an organization. Cloud transformations are successful when everyone is working side by side.
Measure success. Develop realistic and measurable outcomes for Cloud initiatives that are linked to organizational goals.

Contact us here at Beck and Company CPAs to find out more about the Cloud computing opportunities that await you and how they work through our technology consulting services. In addition, Beck and Company CPAs want to partner with you as accountants to help you get your nonprofit finances in order by conducting a financial nonprofit audit on your organization’s behalf. We want to help you engage as a nonprofit with all of your constituents, and Cloud computing plus financial audits can help you do just that!

The Benefits Cloud Computing Offers Nonprofits

It is highly likely that all nonprofit organizations would say they could leverage technology more to be of benefit to their nonprofit. Exchanging information using paper or outdated systems won’t allow you to keep up. Our world necessitates that you keep up with the business world as a nonprofit or you likely won’t survive long. Therefore, you need a Cloud computing solution that will allow you to keep up with financial reporting and accounting tasks while saving money not buying a robust software solution that is too much for your organization and too costly as well. The Beck and Company Certified Public Accountants and Business Advisors know that technology understanding and financial audits can both be daunting for nonprofits. That is why we offer technology consulting services where we can help you understand and get a Cloud computing solution to meet your needs. We also carry out audits that can give you a better glimpse into your financial reality as an organization that can also highlight your need for a Cloud solution that will make financial reporting and accounting practices in the long term.

Over the past couple weeks, we have looked at the need for your nonprofit to consider updating to a financial reporting solution in the Cloud, what being Cloud-based means, and the important features offered through Cloud solutions. With this background knowledge, let’s dive in deeper to why all of this really matters for your nonprofit by looking at how Cloud computing will ultimately benefit your organization.

The challenges facing nonprofits are many and include how to use technology effectively, how to enhance productivity, and how to recruit and retain talented staff members. Here’s more information about each challenge and how Cloud solutions can be of benefit in addressing these challenges:

Using Technology Effectively

Nearly every person is a consumer of technology. This means a myriad of choices for everything from mobile devices to tablets and laptops exist. Cloud-based applications are hardware insensitive enabling a user to work on any platform they choose. This allows each member of your organization’s team to use technology as they prefer to use it using whichever device they find most comfortable for them. With flexibility comes comfort, yet you won’t compromise the essentials because all constituents can work with and access the same important data on the Cloud computing system. The beauty is that it’s just on the device they prefer to use!

Enhancing Productivity

Is your financial information spread across multiple databases and filing systems? Cloud-based solutions facilitate the adoption of digital, optimized workflows. This means you won’t be searching for information in a variety of places or losing time in completing tasks. Being able to work efficiently regardless of location can lead to higher productivity. There’s no need to access multiple software and paper databases to get the information you need. A Cloud system allows you to store all of the data you’ll need in one place. Let the Cloud manage all the information in one place, and you won’t lose time getting it when you need it.

Recruit and retain great staff members

The world is always changing, and your organization will need to keep up in order to attract new staff as it grows. The key is to offer an environment that can support flexible working hours, a work/life balance, opportunities to develop professionally, and the opportunity to work with leading edge technology. Potential staff members are attracted to organizations that are keeping up with these trends in addition to making a difference in their sector and in the world as a whole. The Cloud allows this to happen because it offers flexibility of access, time, and use of any technological device. A Could-based work environment allows flexible working arrangements.

As you strive to effectively use technology, enhance productivity, and recruit and retain a great staff, your nonprofit will benefit from Cloud computing solutions that allow you to achieve these goals with ease. The Cloud benefits are many, and the challenges faced can be reduced simultaneously. Contact us here at Beck and Company CPAs so we can help you transition to the Cloud and use this technology to make audits easier. It would be our privilege to conduct an audit for your nonprofit, and we look forward to hearing from you.