Nonprofits are driven by volunteers looking to give back to their community; however, they must abide by rigorous regulations. Examples might be an organization like Make-A-Wish or your local shelter that must maintain financial transparency about operations and donor donations; nonprofits rely heavily on donations but must demonstrate where that money goes to receive further donations.
Solutions Review editors scour the Internet in search of content related to enterprise technology categories that make a real, impactful statement about them and help make a change. Recently, Orion ERP's article entitled How nonprofit organizations Can Benefit From An ERP Solution made us think about how ERPs may provide benefits beyond large businesses or SMBs (small to medium-sized businesses.
Nonprofits ERP Software Benefits
One System For The Whole Organization
ERP software includes modules like Human Resources, Sales Marketing, CRM and Finance/Accounting that you only have to install once for your entire company - making implementation significantly less expensive than installing multiple standalone solutions. Also modular in structure so modules can be added or deleted according to need; you could hire a company to develop modules tailored specifically for your business if desired.
Productivity Can Be Improved
Using a single software system will enhance communication and visibility within your organization, directly impacting productivity by streamlining work between departments more smoothly, quickly, and efficiently.
Integrate Your Current Infrastructure
ERP software comes in two varieties, cloud-based ERP and traditional. Cloud-based ERP requires Internet access for accessing files, while traditional requires hard drives and office configuration to operate effectively. You can select either type based on your requirements.
Better Reporting
Reporting and creating reports on your fundraising campaign's status will be easier, as all departments use the same software. Your Board of Directors and other key nonprofit members can review reports quickly and easily.
Improved Security
Your data is secure and safe. You can also create and store backups in the event of a hard drive or server crash. You can also set restrictions to your data to keep it accurate, consistent and secure.
What Is The Difference Between Nonprofit Accounting Software And Nonprofit ERP Software?
Nonprofit sectors present unique considerations when choosing accounting software versus enterprise resource planning software. Accounting software is exactly that - accounting software. Most accounting applications share similar functionalities; general ledgers, billing cycles and accounts receivable payable are just some examples; additional functionality may also exist; these programs were meant solely to handle accounting tasks, so their value may lie elsewhere. However, due to being specific for accounting use, they might not prove as helpful in other areas.
ERP software stands apart. Used effectively, ERPs can handle every aspect of the business, from customer service and shipping to accounting. Accounting programs also offer similar accounting features, while ERP offers more general use in other areas its main goal is streamlining communication within your company so every department has real-time, up-to-date data available through it.
Nonprofit organizations must abide by additional requirements that businesses do not, such as disclosing how funds were spent and restricting donations from certain sources for certain uses. Nonprofit-specific software solutions should fulfill these additional regulations to meet this mandate.
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What is the ERP System For Nonprofit Organizations Used For?
In addition to the standard features of streamlining business operations and improving communications between departments, nonprofit ERP software performs several specific functions.
What can your ERP system do for you?
- Donor management- ERPs can assist nonprofits with managing and optimizing donor management programs more effectively. A more successful donor management program means you will develop a deeper understanding of donor motivations; you may increase donor retention and engagement rates.
- Program management- Nonprofits can utilize ERP software for improved planning, implementation and evaluation of new programs or initiatives. This enables nonprofits to maximize resource usage while streamlining operations.
- Fundraising software- Nonprofits rely heavily on fundraising as part of their survival, necessitating various types of fundraising software for peer-to-peer, DIY fundraising, community giving and full-stack fundraisers. ERPs may also handle this functionality easily as these solutions combine donor management data and fundraising statistics for convenient analysis.
- Manage Nonprofit Operation - ERPs can help nonprofits manage their operations, from volunteer and employee schedules to maintenance requests.
- Cash & Fund Management - ERPs assist nonprofit organizations with managing daily operations, cash balances and fund transfers efficiently and cost-effectively. ERPs streamline fund administration. Your nonprofit ERP will assist with everything from properly defining funds to restricting access and preventing cash from commingling.
- Grants Management- Nonprofits rely heavily on grant income for survival. ERP systems can assist organizations by managing grant accounts effectively while creating an audit trail to ensure full compliance with all regulations or requirements.
What is the Best ERP System for Nonprofits?
Choosing the right software package for your nonprofit with so many options may be difficult. Here are some tips for nonprofits to find the best industry-specific ERP system that meets their needs.
What is your Mission?
Understanding your organization's goals and mission to identify what kind of ERP you require. What is the ultimate purpose and risks? Who do you help, and what services are provided? Will you remain focused on one region or expand charity-oriented projects?
Mapping out all your processes is essential in understanding your organization, providing valuable insight that you can apply when choosing an ERP. Nonprofit accounting software should include donor management or grant administration functions to manage donations to charities that build homes for people experiencing poverty, and international nonprofits will need to assess their human resource complexity when choosing HCM solutions.
What Is Your Goal For The Software?
Organizational data and operations are organized hierarchically, with certain facts or figures taking on greater significance than others. Once you understand how personnel and processes interact and function together, identifying your software requirements becomes much clearer. Some nonprofits require CRMs for managing donors while others don't; the key is finding software with features you require without overpaying for unnecessary ones.
Benefits Of Application Sizes And Their Discriminators
Many ERPs are available for nonprofit organizations. They feature innovative toolkits and interfaces designed to monitor even the tiniest details of operations while often being costlier than comparable solutions. When discussing ERP solutions specifically tailored for nonprofits, sometimes cutting back some features is best to increase functionality at lower costs; each circumstance should be assessed independently, but be sure to compare the cost of ownership against benefits received when making any decision about software purchases.
Don't view software acquisition as an equal exchange of funds between mission and software; consider whether the software enables your staff to provide greater assistance. And will the software encourage donors and increase donations? As importantly, be wary if an ERP seems like it might drain money away from your program rather than add value.
Pick The Right Partner
Do not buy the most expensive product with the smallest platform; rather, select vendors who will remain accessible as your organization expands, providing support and upgrades as your needs expand.
Compare employee counts against your own, or ensure their personalities mesh well. After all, this relationship could last five or ten years: can you envision working alongside this vendor over this period and feel it is acceptable with respect to care provided toward nonprofit organizations?
Which ERP is Best For Nonprofit Organizations?
A suitable ERP must meet your organization's requirements, making use of the customizability of ERP software highly advantageous for nonprofit organizations. Software used by for-profit firms may also be adjusted to suit nonprofit requirements with specific solutions tailored specifically for them, such as accounting or fundraising software, rather than traditional ERP functionality.
Companies or nonprofits usually purchase ERP software through an implementation partner who can tailor it to their requirements. An experienced partner will guide your nonprofit through all available options to select one best suited to their requirements.
Read More: Types, Features, And Benefits Of Enterprise Resource Planning
ERP Trends: Top Trends of ERP System for the Future
ERP software is an enterprise resource planning (ERP) solution businesses use for numerous organizational functions. ERP can support HR, accounting and manufacturing processes on a server-side as well as marketing automation and e-commerce operations on client devices. ERP helps streamline processes while automating repetitive tasks to reduce costs while giving companies real-time access to critical information required in making informed decisions.
Let's examine some of the trends to be expected shortly.
Enterprise Resource Planning Trends
Cloud ERP
Most organizations preferred on-premise ERP solutions and were reluctant to explore cloud-based options like Arion ERP; however, with its easier deployment process and reduced IT resource requirements for scaling. Arion ERP cloud ERP has quickly gained popularity in recent years.
Pandemic situations where most employees work from home have made remote data access, collaboration, and work all the more beneficial to businesses and employees alike; this technology makes saving costs such as transportation fees or renting equipment much more cost-effective.
Digital Transformation
Integrating digital technologies and methods into business functions enables companies to streamline operations, boost productivity and raise revenues while staying competitive and relevant while improving customer service. ERP solutions cover every facet of an enterprise and provide the ideal starting point for digital transformation efforts.
Two-Tier ERP
Companies often utilize one ERP system across regional offices, subsidiaries and headquarters; however, this approach was more costly and complex to implement due to differences between offices that did not need full corporate functionality and requirements of subsidiaries that needed different features than headquarters.
Future ERP trends indicate an increasing preference for two-tiered ERP, allowing companies to utilize separate systems for corporate and regional/subsidiary offices.
Small offices often utilize tailored solutions tailored to their requirements, while larger companies employ core ERP for processes like finance. For this system to operate effectively, data must flow smoothly between levels, making implementation less expensive and simpler and giving subsidiaries flexibility in responding to changing business circumstances an approach ideal for rapid expansion companies.
ERP and Other Technology
ERP systems play a central role in helping organizations undergo a digital transformation; however, this technological disruption goes much deeper. Businesses use IoT technologies like business apps to synchronize core business processes for maximum productivity.
Some companies combine ERP software and e-commerce platforms to streamline online order workflows, activate order execution, update inventory levels and track payments. Industry analysts expect social media integration to further benefit businesses: viewing their customers and prospects' activity on various channels allows businesses to understand them better while creating targeted digital marketing campaigns.
The Internet of Things
IoT (Internet of Things) refers to technology where connected devices can send data across networks autonomously without human interference, like sensors in cars that collect and send it back out automatically, allowing their owner to learn about its state and schedule maintenance accordingly.
Attachable devices on tools and equipment transmit data wirelessly to cloud apps for access. Information such as performance, usage, location and other factors are easily available, allowing companies to identify what assets need maintenance and those not being utilized properly.
Personalization
Modern ERP solutions, often cloud-based solutions and offering easy customization features, have gradually replaced rigid old ERP systems. Such ERP programs are developed specifically by software companies for specific industries - manufacturing ERP or F&B ERP, for instance.
ERP software should accommodate AI-powered interfaces and customized dashboards to meet growing customer demand for personalized solutions. Chatbots powered by artificial intelligence may help address customer inquiries based on ERP data by responding with textual responses or voice recognition capabilities another AI feature to watch out for is being able to read voice input into reply messages sent back through an ERP system.
AI-Powered Insights & Improvements
ERP systems with machine learning and artificial intelligence capabilities can expand business processes further while increasing personalization. Up until recently, only a select few ERP software solutions included AI. Still, trends for ERP suggest this trend will become common among most ERP solutions in future years.
AI provides many advantages, such as:
- Actionable Insights - AI can analyze mountains of data in seconds, recognizing patterns and forecasting previously impossible trends.
- Efficient Processes- AI allows business processes to be more efficient and streamlined. Through machine learning, AI can reduce inventory costs by optimizing labor and delivery schedules, improve supply-chain management by identifying reliable vendors, increase accuracy in financial management and more.
Predictive Analysis
Data was accumulated but never exploited to its maximum capacity; that will soon change with IoT connecting employees, tools and equipment with the Internet and creating massive amounts of new data.
Since organizations have recognized the advantages of Artificial Intelligence for ERP, more organizations are focusing on analyzing customer and operational data to gain deeper insights that could affect profitability. ERP used in the past was also helpful with this analysis process. Still, more organizations are now turning toward predictive analytics as an approach and visualizing possible future outcomes in ERP solutions.
Managers might proactively schedule maintenance and services to prevent long interruptions of work. At the same time, companies can make more informed decisions based on accurate predictions derived from big data analysis.
The Age of Context
Companies today operate in an environment of numerous channels and intelligent technology that knows your individual needs and preferences, how information should be delivered and how to maximize performance.
Experts agree that web and mobile apps will integrate context-aware features to anticipate users' needs and streamline everyday routine tasks effectively. One example would be an on-site engineer who received instructions, customer history information and arrival details upon arrival.
Mobile ERP
Mobile applications have quickly become the go-to way to access important business data while on the move, whether from an airport lounge, car ride or warehouse floor. ERP software now has access to this vital data when and wherever we need it - from their airport seat, vehicle seat or warehouse floor.
Mobile ERP facilitates collaboration between geographically dispersed teams operating in different time zones this has proven particularly valuable during pandemic outbreaks. Mobile ERP applications with user-friendly interfaces allow employees to complete their tasks whether or not they're sitting at a computer terminal.
Your employees can now easily log calls, submit expense reports, monitor timekeeping, view approvals and workflows and complete other essential tasks from their smartphones - providing valuable real-time data insights and increased productivity 24/7 helping make their businesses more agile than ever. Mobile ERP provides valuable real-time insights and benefits such as 24/7 remote access for increased business operations flexibility.
What Is Likely To Happen Next? ERP's Future
As companies recognize the advantages of cloud ERP systems' speed and agility, more organizations will transition theirs.
Businesses will benefit greatly from adopting cloud ERP to compete and remain relevant in today's marketplace. Companies that already employ it should seek ways to harness its full power; those already taking this route may look into optimizing their ERP software to support remote work arrangements; the COVID-19 pandemic should ensure we all remain ready for potential disasters in the future.
Implementation requires a greater focus on mobile ERP, workflow automation, remote training and secure remote access to data. Supply chain management capabilities will also be expanded so businesses can better adapt to future supply chain shifts. If your ERP has recently made the leap into the cloud environment, arrange a Arion ERP Demo now so that you can experience its benefits first-hand, and we will answer any queries or address concerns directly with us. We guarantee an exceptional experience.
Arion ERP system offers cloud-based ERP functionality to simplify project and work management without hassle, providing easy access to business information anytime from anywhere and anytime. Arion ERP Software makes managing ERP easier.
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Conclusion
Arion ERP provides an expansive portfolio of technological solutions. Sage Intacct, our cloud-based ERP, has been recommended by AICPA; for more information or a demonstration showing how this financial management solution could assist your nonprofit organization, Get in touch with the best and most reliable software solution to manage operations effectively and efficiently.