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A Guide To ERP for Nonprofit Organizations

When thinking of non-profits, many people do not realize the ways in which even a small non-profit could benefit from the use of an enterprise software. But even the smallest of nonprofit organizations need employees, databases, and financial software just to run.  We’ve written about the benefits that can be realized by using an ERP for nonprofit organizations.

But most non-profit organizations do not have a lot of money even for operating costs, let alone for capital purchases. So how can a nonprofit use an enterprise software application? And why should they? Enterprise software can be expensive. However, it should not be an excuse for non-profit organizations to opt out of using such software and choosing instead to continue using paper to fill out reports.

Non-profit organizations need to use software to their fullest advantage. Even the smallest nonprofit can benefit by having ERP software to run the business. First, an ERP software can help their bottom line in financial reporting and in reporting the finances to the IRS. A non-profit may not be able to afford the best marketing software, but marketing and financial software are available that even a nonprofit organization can afford. Second, it can streamline business operations. A non-profit needs to have good financial accounting software to keep track of money coming in and going out. Without it, the organization could be in the red at all times. A non-profit needs to have good complete, accurate, and up-to-date financial reports to make it look good to the public and peers.

The good news is that there are affordable, simple, user friendly accounting and financial software available for non-profit organizations. By choosing such affordable and easy-to-use software, a non-profit can use the software to streamline its operations, increase its efficiency and maximize the organization’s return on investment. The organization can benefit greatly even if the software does not have all the features and reports of enterprise software.

Benefits of an ERP for Nonprofit Organizations

Many non-profit companies rely on simple accounting software to run the business of donation collection, deposits, and tracking of donation. More complex software is simply unaffordable or is too complex for non-profit companies to use effectively.

An ERP for a nonprofit organization is a great solution for non-profit organizations with low budgets. Many non-profits rely only on manual and paper banking and donation reporting methods. This is fine for smaller, less funding-challenged non-profits. However, for non-profits that want to scale and meet increased compliance needs, a nonprofit ERP is an easy and inexpensive solution.

A big benefit for a nonprofit organization is that many enterprise software solutions can be deployed to work on cloud servers. This means that the organization does not need to have a specific computing server installed in their office and they can instead use a cloud server, which is typically cheaper. This cuts costs while expanding the organization’s ability to operate.

There are also smaller enterprise software solutions available to non-profit companies even if the software does not have all the features and is not enterprise level. We have written about how to pick the right enterprise software based on features, prices, and support. The software may cost less, it may not have all the features, but the software can still be a big help to the organization.

ERP for Nonprofit Organizations That Aren’t Big

Some non-profit organizations are very small. They may have only a small number of accounts and donors. It may be best for these organizations to have small, freemium-based enterprise software to run the business.

There are enterprise software solutions that can be used for free. These are freemium-based enterprise software solutions, which give a small amount of features as a free version with a paid option for more important features.

Non-profit organizations that are small and have light needs for accounting features can use these freemium software solutions to quickly and easily fill out reports and do accounting. The freemium enterprise software solutions can be used to manage basic donor visits, donations, fundraising, payments, and banking data.

Ideal for Small Non-Profits

There is no need for a non-profit organization to spend a fortune just to get good software. There are many affordable enterprise software solutions that a non-profit organization can use to their full advantage. Pick out the software and features that the non-profit organization will use the most and then go with the solution that is the best. Choose an accounting and financial software that can be used on a cloud server or that works for free.

If a non-profit company is small in scale or needs are unmet, the organization should still use ERP software to streamline business processes and keep track of financial data. This will help the non-profit to maximize its return on investment and expand and grow.

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