Within the nonprofit sector, each money and time are at all times restricted so you must strike the fitting steadiness between mission-oriented actions and backend operations. Your final aim is to channel as many sources as attainable towards your mission. Nonetheless, having the fitting backend infrastructure helps you make knowledgeable choices and streamline processes that profit the group in the long term.
As a CFO, you recognize your group must spend money on your know-how infrastructure. However how do you justify spending cash on a budgeting instrument as an alternative of provides for an after-school program?
Listed below are just a few issues when advocating for know-how investments in your accounting and finance departments.
Understanding the Significance of Expertise Investments
A standard impediment in know-how investments is the notion of a binary alternative: cash can both be spent on “X” or “Y.” Nonetheless, the fitting know-how investments require a long-term perspective. For instance, through the pandemic, nonprofits that invested in paperless processes and know-how have been higher positioned in February of 2020 in contrast to people who scrambled to adapt to distant work. Some nonprofits needed to drive printed checks round city accumulating signatures, whereas others had already transitioned most of their distributors to digital and automated funds.
Organizations that embraced know-how investments earlier have been capable of pivot extra seamlessly. Whereas backend investments might not seize headlines or seem flashy, they’re important for making certain the group can shortly adapt to altering circumstances.
Hyperlink Expertise Investments to the Group’s Strategic Plan and Goals
To make a powerful enterprise case for any know-how funding, you must be certain that the proposal advantages not solely the finance group however the group as a complete. Contemplate how the funding will influence processes or reporting, and the way it will profit key stakeholders, to make your case even stronger. Listed below are just a few factors to think about when linking your proposal to your group’s strategic plan:
Map out Strategic Targets
Start by clearly figuring out and outlining your nonprofit’s strategic objectives and goals. These may embody mission-related consequences, operational effectivity targets, or capacity-building initiatives. Would this funding velocity up budgeting, present extra correct information, or mitigate danger? Make sure to clearly lay that out. Aligning finance with the remainder of the group can go a good distance. Too many finance groups don’t consider the group as a complete, which might harm your case for know-how investments.
Expertise as an Enabler
Clarify how the proposed know-how acts as an enabler to attain these strategic objectives. For instance, if one of many strategic objectives is to boost service supply, reveal how a brand new case administration system can streamline processes and enhance consumer outcomes.
The place attainable, put numbers to those outcomes. In case your group saves three hours per week with the brand new software program, what does that imply for worker satisfaction, improved decision-making, or elevated capability?
Integration with Present Plans
Present how the know-how funding integrates seamlessly with the present strategic plan and spotlight any particular initiatives or initiatives that the know-how will help. This will even embody the way it will supercharge one other division’s ahead momentum with new instruments.
In case your new fund accounting software program integrates along with your fundraising system, your growth group may have extra transparency into how funds have been spent. That may enhance their donor stewardship, constructing belief and growing recurring presents.
Construct a Compelling Enterprise Case
Whereas most nonprofit finance leaders perceive the significance of know-how, presenting a compelling case to government management or the board may be more difficult. Restricted funds and time typically imply that investing in know-how can take away from program actions. Nonetheless, a powerful enterprise case can reveal the worth of the funding.
Listed below are some key factors to remember:
- Clearly Outline Targets: Define the first objectives of the funding, each for the finance division and the group as a complete.
- Spotlight Present Challenges: Clarify why the present techniques are insufficient and the way the brand new funding will profit your complete group, not simply the finance division.
- Have interaction Stakeholders: Solicit suggestions from different stakeholders inside the group. Profitable investments typically contain processes that span your complete group. This will also be an space to get inventive! Can different departments use these new techniques and profit from what finance is proposing? If growth and finance can each profit from a instrument, then the case is stronger coming from a number of departments.
- Present a Timeline: Current a transparent timeline for implementation and rollout. Demonstrating that the method is properly thought out can considerably strengthen your case.
Put together for the Approval Course of
Set up considerate stewardship of funds when making any funding, particularly in know-how. Making the flawed funding can set a corporation again years. To mitigate this danger, be certain that your group examines all choices and completely thinks by means of the method.
Collaborate with third-party consultants, peer organizations, and trade associations to save lots of time and supply worthwhile insights at each stage of this important choice. Have a well-defined plan and preserve organizational objectives in thoughts. You’ll wish to current all of your work and decision-making to your board as a cohesive story.
Be Ready for Change with the Proper Expertise
Investing in know-how may be daunting, however it’s typically crucial for a corporation’s development and growth. Making a powerful case in the present day may help your group keep forward of the curve, fairly than ready till change turns into unavoidable. A transparent and concise case for know-how is as essential as discovering the fitting know-how for organizational buy-in.
Need to study extra about find out how to get management buy-in in your group’s know-how investments? Take a look at our webinar, Making the Case for Tech Investments: A Nonprofit CFO’s Information to Successful Board Approval, part of our Final Nonprofit CFO Collection.