Within the nonprofit sector, each money and time are at all times restricted so it’s important to strike the best steadiness between mission-oriented actions and backend operations. Your final purpose is to channel as many sources as potential towards your mission. Nevertheless, having the best backend infrastructure helps you make knowledgeable choices and streamline processes that profit the group in the long term.
As a CFO, you already know your group must put money into your expertise infrastructure. However how do you justify spending cash on a budgeting software as an alternative of provides for an after-school program?
Listed below are a number of issues when advocating for expertise investments in your accounting and finance departments.
Understanding the Significance of Know-how Investments
A standard impediment in expertise investments is the notion of a binary selection: cash can both be spent on “X” or “Y.” Nevertheless, the best expertise investments require a long-term perspective. For instance, in the course of the pandemic, nonprofits that invested in paperless processes and expertise have been higher positioned in February of 2020 in contrast to those who scrambled to adapt to distant work. Some nonprofits needed to drive printed checks round city gathering signatures, whereas others had already transitioned most of their distributors to digital and automatic payments.
Organizations that embraced expertise investments earlier have been in a position to pivot extra seamlessly. Whereas backend investments could not seize headlines or seem flashy, they’re important for making certain the group can shortly adapt to altering circumstances.
Hyperlink Know-how Investments to the Group’s Strategic Plan and Targets
To make a powerful enterprise case for any expertise funding, it’s essential to make sure that the proposal advantages not solely the finance crew 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 a number of factors to contemplate when linking your proposal to your group’s strategic plan:
Map out Strategic Objectives
Start by clearly figuring out and outlining your nonprofit’s strategic objectives and aims. These would possibly embrace mission-related outcomes, operational effectivity targets, or capacity-building initiatives. Would this funding pace up budgeting, present extra correct information, or mitigate threat? Be sure you 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 may damage your case for expertise investments.
Know-how as an Enabler
Clarify how the proposed expertise acts as an enabler to attain these strategic objectives. For instance, if one of many strategic objectives is to boost service supply, show how a brand new case administration system can streamline processes and enhance shopper outcomes.
The place potential, put numbers to those outcomes. In case your crew saves three hours every 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 expertise funding integrates seamlessly with the present strategic plan and spotlight any particular initiatives or initiatives that the expertise will help. This may even embrace the way it will supercharge one other division’s ahead momentum with new instruments.
In case your new fund accounting software program integrates with your fundraising system, your growth crew might have extra transparency into how funds have been spent. That may enhance their donor stewardship, constructing belief and rising recurring presents.
Construct a Compelling Enterprise Case
Whereas most nonprofit finance leaders perceive the significance of expertise, presenting a compelling case to govt management or the board may be tougher. Restricted funds and time usually imply that investing in expertise can take away from program actions. Nevertheless, a powerful enterprise case can show the worth of the funding.
Listed below are some key factors to bear in mind:
- Clearly Outline Objectives: 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 methods are insufficient and the way the brand new funding will profit the whole group, not simply the finance division.
- Interact Stakeholders: Solicit suggestions from different stakeholders throughout the group. Profitable investments usually contain processes that span the whole group. This will also be an space to get artistic! Can different departments use these new methods and profit from what finance is proposing? If growth and finance can each profit from a software, 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 thoughtful stewardship of funds when making any funding, particularly in expertise. Making the fallacious funding can set a company again years. To mitigate this threat, make sure that your group examines all choices and completely thinks by way of the method.
Collaborate with third-party consultants, peer organizations, and trade associations to save lots of time and supply beneficial insights at each stage of this vital choice. Have a well-defined plan and maintain organizational objectives in thoughts. You’ll need to current all of your work and decision-making to your board as a cohesive story.
Be Ready for Change with the Proper Know-how
Investing in expertise may be daunting, however it’s usually needed for a company’s progress and growth. Making a powerful case immediately may help your group keep forward of the curve, relatively than ready till change turns into unavoidable. A transparent and concise case for expertise is as vital as discovering the best expertise for organizational buy-in.
Wish to study extra about the way to get management buy-in to your group’s expertise investments? Try our webinar, Making the Case for Tech Investments: A Nonprofit CFO’s Guide to Winning Board Approval, part of our Final Nonprofit CFO Sequence.