Put yourself in a potential donor’s shoes as they choose whether to donate their hard-earned money to Nonprofit A or Nonprofit B. Let’s assume that both nonprofits serve a worthy cause and have strong leadership—there’s a reason they’re the finalists.
But when the donor asks the two nonprofits to demonstrate their financial accountability and transparency, differences emerge:
- Nonprofit A scrambles to reassure the donor using last month’s financial metrics, which are a little difficult to interpret and explain and lack context because they can’t be shown in relation to the prior year’s metrics.
- Nonprofit B pulls up an easy-to-view dashboard that provides real-time outcome metrics related to projects, budgets, and expenses. When the donor asks about a particular program and how results compare to last year, Nonprofit B pulls up the answer with a single click.
Financial Systems and Metrics Matter
Having a reliable and transparent financial management software system can make a difference not only with individual donors and foundations but also with grant managers, charity evaluators, potential employees, and regulatory agencies—anyone who is evaluating your nonprofit.
As detailed in “Outcome Metrics: Measuring What Matters in the Nonprofit World,” a white paper by Sage Intacct and AICPA Business Solutions, the right financial management solution can help you develop outcome metrics that provide a comprehensive picture of your organizational performance and impact.
It’s not only outside entities that can benefit from detailed, transparent metrics that are available in real time. Imagine how your leadership team could use those insights to make better, faster, and more informed decisions.
Michaud Accounting Solutions helps nonprofits across the country improve their financial management processes and increase transparency. By implementing Sage Intacct cloud accounting software, the leading accounting software solution for businesses and nonprofits, you can gain real-time visibility into your outcome metrics. Plus, by outsourcing to the experienced professionals at Michaud Accounting Solutions, you can free your staff to focus on growth and mission-critical work, instead of daily accounting and reporting tasks.