It’s hard to imagine it, but accounting for nonprofits can be even easier and better when the right software is in place. The right software facilitates communications among departments and fosters trust and collaboration. This is especially true with fundraising and accounting.
The fundraising and finance or accounting departments in your nonprofit organization often seem like two sides of opposing football teams. Each one wants “the ball” or the forward momentum on a project, and neither understands why the other doesn’t want to give it up and play along with them. Eventually, frustrations develop, and groups may back into their silos until communications improve.
It doesn’t have to be that way. Accounting for nonprofits works much better when both finance and accounting work together towards mutual goals and with equal respect and understanding. That begins with clear communications.
Causes of Miscommunications
Anytime you have two people speaking, there’s a chance for a miscommunication. Whether it’s in the message, the medium, or how it is delivered, miscommunications happen all the time. They are quite common between finance or accounting and fundraising. Some of this stems from not understand what each party does in the organization at large. There are some things that each group would like you to know about their work.
The fundraising group wishes that finance could…
- Understand how challenging fundraising can be.
- Acknowledge that to make money for the organization, you must spend money.
- Trust the process of donor relationships to come to fruition and provide funds for the organization
- Offer flexibility with deadlines, requirements, and requests.
- Appreciate the effort that goes into fundraising.
And finance wishes that the fundraising team could…
- Respect that their job is complex and demanding, often dictated by legal requirements that have no flexibility.
- Ask for their expertise and help in accounting and finance matters.
- Provide information proactively so that finance can do its job easily.
- Understand basic accounting practices so that we “speak the same language.”
- Adhere to deadlines.
It’s easier to come to consensus when mutual respect underscores the relationship. Knowing what the other party needs, why they need it, and how your actions impact their work can go a long way towards creating mutual respect and clear communications.
Similar Challenges Face Fundraising and Finance
Although the fundraising and finance teams each perform different functions in an organization, they face similar challenges. Data, provided by the right accounting for nonprofit software and systems, can create a shared understanding upon which clear communications rest.
The right software can provide data to both groups so that they cannot back into their own silos and retreat with their information. Information is easier to share, and easier to use for collaboration. Both groups must trust and depend upon one another to complete projects and tasks.
Some areas where this shared data can make a big impact include activities that:
- Collaborate on budgets and tracking.
- Improve reports and reconciliation of financial information.
- Jointly plan and set goals.
- Establish frequent, timely communications.
- Identify ideal processes and procedures.
- Integrate fundraising and accounting software.
Resolving the Challenges
Fundraising and finance may often feel like competing teams, but they should be both rooting for the home team, or working towards their company’s overall goals. By understanding one another’s work, sharing data, and experiencing the benefits of shared data and systems, the two teams can work more effectively and help your nonprofit achieve its mission.
Beck & Company
If you struggle with your accounting for nonprofits, Beck & Company can help. We are a CPA and business advisory firm dedicated to the nonprofit sector. Our many years of experience can help you update your financial compliance or handle all types of accounting for nonprofits. Please contact Beck & Company today for further details.