As a nonprofit organization, your mission is to create positive change and impact. However, managing operational complexities can be challenging, especially as you grow. An enterprise resource planning (ERP) system can help. By streamlining processes and enhancing visibility, an ERP can enable you to allocate resources more effectively toward your cause.

At BPM, our professionals have extensive experience with charities, foundations and associations of all sizes, helping them navigate financial management, compliance and operational efficiency. This guide will explore why your nonprofit needs an ERP system, like Sage Intacct, and provide a step-by-step roadmap to help you choose the right solution.

Why should nonprofits leverage an ERP?

As a nonprofit organization, you need to manage multiple funding sources with specific reporting requirements. As a result, you have specific accounting and compliance requirements.

Leveraging the right ERP is invaluable for several reasons:

1.    Cost-effectiveness and efficiency: ERPs can streamline operations and automate manual tasks. This allows your nonprofit to manage resources more effectively so you can focus on your mission-critical initiatives.

2.    Donor and grant management: An ERP system enables you to track donations and comply with grant requirements. This can help you cultivate stronger relationships with supporters.

3.    Financial transparency and accountability: Transparency is an important part of building trust with donors. An ERPs’ accurate financial reporting and auditing capabilities enhance transparency and accountability

4.    Data-driven decision-making: ERPs consolidate data from various departments into a single, centralized platform. This provides nonprofit leaders with real-time insights that allow them to make informed, data-driven decisions.

How to choose the right ERP

Choosing the right ERP system requires careful consideration and a structured approach. You should determine which features are essential for your needs and set a realistic budget. From there, you can evaluate vendor offerings and begin planning for implementation.

Step 1: Know your needs

The first step in selecting an ERP is understanding your organization’s reporting needs and operational requirements. Conduct a comprehensive assessment to identify inefficiencies and determine the essential features your ERP system must have.

For example, Sage Intacct features dimensional reporting. This feature is especially useful for nonprofit organizations as it allows you to track and analyze financial data across various dimensions – such as programs, locations, departments and funding sources. Understanding up front that this is a feature you need helps you determine which platform to consider in future steps.

Don’t forget to also consider how an ERP can integrate with existing tools. This collaborative approach helps ensure that the platform you choose will meet the diverse needs of your entire organization.

Step 2: Set your budget

Implementing an ERP is a significant investment. It’s important for you to set a realistic budget that accounts for all associated costs. These include:

• Software licensing
• Implementation services
• Training
• Ongoing support

There are many options available to help nonprofits cover the costs of implementing the right ERP system. Many donors are eager to support initiatives that improve organizational efficiency and reporting capabilities.

Step 3: Explore your options

With a clear understanding of your needs and budget, you can begin exploring various ERPs. Research the top solutions specifically designed for nonprofit organizations. Sage Intacct, for example, is the only ERP endorsed by the American Institute of Certified Public Accountants (AICPA). Be sure to also take note of their features, capabilities and reputation.

Rather than tackling the ERP evaluation process on your own, we encourage you to partner with BPM. As a firm with deep roots in the nonprofit sector, we have extensive knowledge of the leading ERP solutions designed specifically for mission-driven organizations. By collaborating with our team, we can provide you with personalized guidance on the ERP system that will deliver the greatest operational efficiency and reporting capabilities to amplify your impact.

Step 4: Evaluate key features

As you narrow your list of potential ERP solutions, take a closer look at the specific features each system offers. Consider usability, integration capabilities, data security, compliance features, scalability and future growth potential. Refer to the essential requirements you identified in Step 1 and assess how well each ERP system aligns with your organization’s specific needs.

Sage Intacct addresses nonprofit organizations’ unique accounting and reporting requirements. It includes revenue recognition, project management and allocation functionalities. It also allows for audit adjustments and helps streamline the audit process.

• Grant management: Track grant details, manage budgets, and generate reports specific to grant requirements.
• Automated revenue recognition: Properly recognize and defer revenue according to FASB standards.
• Automated allocations: Create allocation rules that can automatically distribute expenses or revenues across multiple dimensions.
• Multi-entity support: Manage multiple locations, subsidiaries or affiliated organizations from a centralized platform.
•  Comprehensive audit trail and compliance: Financial transparency and regulatory compliance are vital to maintaining good stakeholder relationships. Sage Intacct’s robust audit trails, access controls and compliance features make this easy.

Step 5: Request a demo

In our experience, getting a visual provides key insights into how you can best utilize the product. During the demo, be sure to use specific scenarios or tasks from your day-to-day operations and involve key team members from various departments. Their input and feedback will be crucial in making an informed decision.

BPM is happy to provide a demo so that you can see Sage Intacct’s functionality firsthand.

Empower your nonprofit with BPM

After gathering all necessary information, reviewing feedback and comparing options against your initial needs and budget, it is time to decide. Choosing the right ERP system is critical for any nonprofit organization and we hope the steps outlined in this guide will help you find the best solution to support your nonprofit’s mission.

At BPM, we understand the unique challenges faced by nonprofits. Thanks to our large nonprofit industry group, we can collaborate with tax, assurance and other practices. As a Sage Intacct partner, we are committed to providing tailored solutions that drive efficiency, transparency and mission success. By taking the time to understand your nonprofit’s needs, we can deliver an effective and customized solution.

Don’t let outdated systems and manual processes hold your nonprofit back. Empower your nonprofit to focus on what truly matters: creating positive change and making a lasting impact. Contact us for a free demonstration today.