nonprofit management – Beck & Company

How Membership Organizations Create Winning Experiences: Lessons from Amazon, Google and Apple

There is so much to learn from companies who have taken extra steps to build a great experience for their customers. Recent studies indicate that many membership organizations struggle to retain and attract new members. Marketing General reports that among the associates it surveyed, membership is down six percent overall. Sixty-eight percent report that retention remains stagnant.

Why is membership going down?

The truth is that members no longer feel their ‘user experience’ or membership experience, if you will, is providing them with the emotional satisfaction or experiential satisfaction they once had. Membership, in other words, isn’t providing the same value today that it once did. They are taking their money and memberships elsewhere, or foregoing memberships altogether to find other ways of enhancing professional value, education, and interactions.

Some of the issue stems from the rise of new technologies, such as social media, which make it easier than ever before to interact and network with people who share similar interests, professional background, and experience. This important function was once held solely by membership organizations, which provided meetings, forums, newsletters, and other tools that enabled people with a similar profession or interest to find common ground, share industry information, and support one another in their careers.

But we can’t lay all the blame at the feet of social media. Members always had a choice to join or not, even if it was a choice between local networking groups versus national membership, or organization A versus organization B.

A closer look at how big brands such as Amazon enhance user experience may help nonprofits learn how to enhance member experience and turn the tide on flagging interest in membership organizations.

What Membership Organizations Can Learn from User Experience

Several online brands offer lessons in user experience that we can translate into daily member experience.

Amazon: People love shopping on Amazon’s site because it provides seemingly limitless choices. The retailer began with books, added music, and now boasts almost every category of product under the sun. The site’s search engine is excellent and makes it easy to find what you are looking for. Site members also rank and comment on their purchases, adding quality assurance for ‘real people’ just like you to each listing.
Google: Over 60 percent of the world turns to Google to find what they need online. It’s fast, intuitive, and easy to use.
Apple: Apple’s products were originally created for graphic designers. Microsoft’s PCs were introduced for office and home computing, so Apple staked out a niche as the computer for graphic design. Today, its sleek design and powerful, virus-resistant computing power appeal to many.

What can we learn from the user experiences listed above?

Amazon – comprehensive selection, something for everyone, easy to find what customers need
Google – easy to use, fast, understands its customer base
Apple – innovative, cutting-edge, new, fresh

These concepts are important over-arching concepts for membership organizations. Taking a cue from the popular brands, member organizations can infuse “member experience” into their missions, values, and offerings so that potential members see and experience greater value from their membership.

To enhance your member experience, think of ways that you can:

Add comprehensive offerings to your member benefits, making it a ‘one stop shop’ for your members.
Enhance your membership so that it is as easy to use as a Google search.
Refresh your educational opportunities so that they are cutting-edge and different from what members may find at their local colleges, universities, or other professional development providers.

With a little planning and a lot of creativity, you can come up with member experiences that rival that of the big brands. Membership organizations need to evolve, grow, and change to keep pace with consumer demand. Make member experience part of your organization starting today.

Nonprofit Financial Management Help from Beck & Company

Beck & Company is a Washington D.C. area nonprofit accounting firm with a team of expert auditors, accountants, and advisors available to help nonprofits of all sizes. We provide a variety of consulting, auditing, and accounting services to help nonprofits outsource audit and nonprofit accounting tasks, improve operations and efficiency, so your team can be freed up to focus on your cause. For more information, please contact us at 703-834-0776 x 8001.

Great Questions Asked by Great Nonprofit Managers

How well do your managers ask questions? Some might not even give any weight to this or consider it a skill. You may not even see “question asking” on any list of managerial expectations. However, asking the right questions, and the tough questions, is an effective part of a manager’s job which implies it may require more attention.

Being a manager isn’t easy. Managers have finite resources and growing task lists. They must handle people and budgets with equal finesse, and in a nonprofit organization, also manage public perception. More importantly, they must be willing to ask the hard questions and to listen and learn from the answer they get as they explore ways in which to enhance and build their organization.

Asking the Hard Questions

The difficult questions are the ones whose answers may yield an unpleasant reality for the asker. In other words, you may not like what you hear! When it comes to nonprofit organizations, these three questions are at the top of the list of the hard questions that must be asked for organizations to ensure they’re doing the best they can to fulfill their mission.

1. Am I doing my job well? Followed by, are we doing our jobs well?

Your “job” at a nonprofit is more than the list of things you are responsible for. It’s also your job to help the organization maintain and achieve its mission, to build public perception and awareness, and to help keep a positive perception in the public’s eye. It’s not an easy task. Your responsibilities in this mix may be weighted more heavily towards one area or another depending on your role in an organization. But you still need to ask if you are doing your job.

Reviewing organization-wide goals and plans and assessing how well you are achieving key performance indicators can help you answer this question.

2. Are we adapting to changing circumstances?

As the proverb goes, “change is the only constant in life.” Situations, personnel, and other facts of nonprofit life can change over time. Organizations that can grow, adapt, and change are ones that thrive.

Look around your organization. How well have you adapted to changing circumstances? If your nonprofit began with one specific task in mind, have you been able to adapt to meet new challenges?

Examine systems, technology, personnel, geography, and other factors. Each area influences how well your nonprofit can do its job. Those that change with the times are those that can continue to grow, prospect, and help others.

3. How well are we using our resources?

The push within most nonprofits is to find ever-increasing sources of donations and funding to fuel growth. Looking at how well you are using your current resources isn’t easy. It can be troubling to realize that you’ve overspent on a marketing campaign or haven’t invested other resources wisely. Yet it’s only by asking these questions and facing the truth that you can find better ways to use existing resources.

Resources aren’t limited to funds, either. They can also refer to personnel. It’s a good idea to look at your team and make sure that you are allowing individuals to work to their strengths. Place them in positions where their unique talents can help the organization thrive. Outsourcing tasks like audit prep or nonprofit accounting can free your team up to do the work they were hired to do. Make sure that you are using people as well as financial resources in the best possible way.

Practice, Practice, Practice

Asking questions is a skill and can be improved with focus and practice. Managers are in place to find ways the organization can function more effectively. The best way to determine this is to ask questions about the people, process and systems being used. Getting curious about why things are done a certain way and if there’s a better approach only makes for a stronger manager, thought process and organization. Asking questions in a way that does not make others defensive is a great skill to hone in on too. As you practice this skill, and focus on getting better in this area not only improves your management style, it sets an example for others to learn and grow too.

Nonprofit Financial Management Tips [Free Webinar]

Why Nonprofits Need to Learn More About ASC 606 and IRFS 15

Nonprofit financial management includes keeping abreast of FASB changes, and examining your accounting methods to ensure they coincide with the latest recommendations. In May 2014, FASB issued Topic 606: Revenue from Contracts with Customers. In it, plans were unveiled to require all entities, both public and private, to change how they accounted for revenues. Revenues were to be recognized when the entity satisfied the performance obligation with the customer. This usually means that when goods or services are transferred to the customer, the revenue can be recognized.

While much of the work of a nonprofit doesn’t fall under the new ruling, some of it might, which is why you should pay attention to the changes and evaluate your revenues accordingly. Activities typical of a nonprofit that might be considered under the new ruling include membership fees, conferences and seminars, subscriptions, tuition, products and services, advertising, licensing, sponsorships, royalty agreements, and federal and state grants and contracts.

Nonprofits seeking to learn more about the law should sign up for the forthcoming seminar from Intacct: The Impacts of ASC 606 on Subscription Businesses. This webinar will take place on Thursday, November 3^rd at 11 a.m. PST/ 2 p.m. EST.

If you are currently using spreadsheets to manage your accounting, it will be almost impossible to comply with this law and IRFS 15 compliance, the effects of which will begin in December 2016.

The webinar is led by Tony Sondhi, a member of FASB’s Emerging Issues Task Force and an expert on revenue recognition. This is a unique opportunity not only to learn first-hand about 606 and IRFS 15 compliance but to learn from a well-known expert and member of the FASB task force.

At this seminar, you will learn more about the changes begun by these rulings, as well as information on how you can interpret and implement them for your organization. You will also learn more about the financial risks for subscription businesses. Many membership organizations rely upon a subscription model, which is directly impacted by these rulings.

According to the FASB document, “The core principle is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.”

The AICPA has put together a good paper that outlines the requirements and delineates the steps to take under each. There are five basic steps to comply with the new regulation:

Identify the contract with the customer.
Identify the performance obligation within the contract.
Determine the transaction price.
Allocate the transaction price.
Recognize the revenue when the entity satisfies the transaction.

Typically, step 5 occurs when goods or services are delivered satisfactorily to the customer.

The goal, of course, is to protect customers and to make it simpler and clearer for entities to recognize revenues. Many organizations are already using similar protocols, and for those organizations, making adjustments to satisfy the requirements should be simply. For others, it may take a deeper look at the way they are recognizing revenues, and shifting some of their processes.

Do You Need to Make Adjustments?

All nonprofits should assess their accounting practices and see how their revenue streams compare to the new rules. Organizations should also consider what, if any, impact this may have on their financial statements. It is a wise move as part of nonprofit financial management.

Keeping Abreast of FASB Changes

We have previously shared details of the proposed FASB changes taking effect in 2016. Any changes that impact your business should be noted and researched as soon as possible. Nonprofits, like other business entities, must comply with all requirements. Failing to do so can put your nonprofit at risk for losing its nonprofit status. You also risk falling behind in compliance issues, an important part of accurate nonprofit financial management.

More seminars are available to provide updates on various issues pertaining to accounting and nonprofit accounting and finance. You may view our complete list online.

Beck & Company

Beck & Company is an independent certified public accounting firm located in Washington, D.C. Founded in 1987, we specialize in the world of nonprofit institutions, helping them to navigate the complex world of finance and accounting. Our services are always personalized, and cost-effective for your institution. We welcome your inquiry or call. Contact us today or call 703-834-0776 x 8001.

Providing Exceptional Customer Service in a Nonprofit Environment

Providing customer service in a nonprofit environment takes different forms depending on the type of work you’re doing. A homeless shelter that provides meals, beds, and hot showers on a daily basis may find that simply greeting each guest warmly and making sure the soap dispensers are filled is making great strides on their customer service. An educational nonprofit that sells books and teaching aids may find that fulfilling orders quickly boosts their service. To improve customer service in a nonprofit environment, you must first decide what good service means to your organization, determine ways to measure it, and then implement practices to improve it.

Determine Service Baselines

The first thing to do is to determine what constitutes the absolute minimum level of good service you can provide to your constituents. Here’s a simple checklist to help you take that first step.

At what point do members of your organization interface with the public?
Is it by phone, in person, social media, or at events?
Who meets with the public? Is it one person, a team, or everyone?
What is the interaction like?
What impression do you want people to get of your organization?
Do you give staff and volunteers any type of training in customer service currently? If so, what is that training?
Do you have any parameters for how quickly phone calls must be returned or who gets to respond to inquiries on social media? If so, how is this information shared with everyone?

Next, think about your desired outcomes. If your desired outcomes don’t match the current situation, what changes can you implement to help you achieve your outcomes?

Measuring Service

Organizations typically apply both qualitative and quantitative measurements to service. Qualitative sounds simple enough; you can send out surveys, save emails from constituents thanking someone for good service, or measure it in terms of donor and patron satisfaction.

Quantitative means measuring, and measuring involves numbers and data. You need a starting point, an objective, and a way to measure the distance between the two. When it comes to customer service, think about measuring the time elapsed between returning calls, the time to deliver service, and similar metrics.

Not everything can—or should—be measured. Make logical decisions based on what’s most important to your organization’s service level. Don’t force-fit anything into quantifiable metrics that doesn’t make sense to track.

Improving Service

Once you know what you have and what you’d like to see, it’s time to put into place some best practices for improving service. In a nonprofit environment, that can be slightly more challenging than in a for-profit environment if you’re dealing with volunteers as well as paid staff, but it can be done.

Set expectations: Set the bar high for customer service, and when new volunteers or staff are trained, make your expectations clear.
Establish written policies: Written service policies also make expectations clear and provide common standards by which service can be measured.
Reward right actions: When you notice people on your team giving great service, reward them by giving them praise, thanking them, or otherwise pointing attention to “right” behaviors.
Model what you’d like to see: Be sure that your senior level staff demonstrate the highest standards of behavior, too. It’s important that managers act as role models for volunteers and junior staff. People practice what they see, and when they see you “walk the walk,” they’ll know that good customer service is important to your organization.

Good customer service is important whether you run a nonprofit or a for-profit organization. When it comes to helping others or fulfilling your organization’s mission, your interactions with the public, and the positive feelings these interactions engender with the public, are what will lead people to think favorably of your organization and perhaps donate to it. It’s all part of running a great nonprofit organization!

Beck & Company

Beck & Company offers certified public accounting and business advice, with an emphasis on the world of nonprofit organizations. We understand the nuances and challenges that nonprofits face and can help you with accounting, business advice, and more. Contact us today or call 703-834-0776 ext. 8001.