INSIGHT

Why outdated systems could cost your nonprofit more than you think

Angela Thomas • March 20, 2025

Industries: Nonprofit

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Lost in the grant management wilderness? Angela Thomas, BPM’s Senior Manager – Advisory, walks you through how upgrading your ERP to Sage Intacct can improve your nonprofit’s financial management. 

“How do you survive without a basic game plan?”  This is the question my husband asks every time he watches Naked and Afraid.   

In my house, there’s a standing deal: if my husband gets to binge-watch his favorite survival show, Naked and Afraid, he’ll rub my feet. It’s a solid trade—especially because he can’t resist commentating on how utterly unprepared the contestants are. “They knew they were coming on this show,” he’ll say, shaking his head. “Why didn’t they learn how to make fire? Why didn’t they pack on some weight before starving in the jungle?  

The point is, you can’t wing it when the stakes are high. This is exactly what can happen when nonprofits take on federal grants without the right financial systems. Just like those contestants, they’re thrown into a complex, high-stakes environment where preparation is everything. And if they don’t have the right tools or knowledge? It’s a financial survival challenge—one that most organizations can’t afford to lose.  

And yet, nonprofits do this all the time when it comes to managing their federal grants. Millions of dollars get secured in funding but most often non-profits don’t have the right processes, systems, or safeguards to track it properly. It’s the financial equivalent of wandering through the wilderness, hoping for the best. 

Just like on Naked and Afraid, a lack of preparation leads to disaster—lost funding, failed audits, missed deadlines, and total financial chaos. 

The High Cost of Outdated Systems 

Federal grants come with strict compliance rules, and the price of mismanaging them is steep—both financially and in terms of an organization’s reputation and future funding potential. Here are five critical ways outdated financial systems can put your organization at risk: 

1. You Could Lose Grant Money ($100,000 – Millions Lost or Repaid) 

Imagine finally securing that big federal grant, only to find out you didn’t track expenses properly and now have to return a significant portion of the funds. This happens more often than you’d think, and it can cripple a nonprofit’s ability to operate. 

2. Compliance Failures = Costly Audits ($20,000 – $100,000+ in Expenses) 

An inaccurate or incomplete Schedule of Expenditures of Federal Awards (SEFA) report can trigger a single audit—where federal agencies go line by line through your books. Even if they don’t find fraud, a messy audit can cost tens of thousands of dollars and shake funders’ confidence. 

3. Missed Reporting Deadlines = Fines, Grant Denials, and More ($10,000 – $500,000+ in Risk) 

Miss a federal reporting deadline? That could mean not just losing current and future funding but also landing on a federal “high-risk” list — making it harder to receive grants in the future. These deadlines are non-negotiable, and without a system that automates tracking and reporting, even the most well-intentioned nonprofits can fall behind. 

4. Staff Burnout & Wasted Time (Priceless) 

Your finance team didn’t sign up to spend weeks drowning in spreadsheets. Manually tracking grants, juggling compliance, and correcting reporting mistakes leads to stress, burnout, and lost productivity. A strong financial system eliminates these headaches—freeing your team to focus on strategy and mission-driven work. 

5. Loss of Trust & Reputation Damage (Long-Term Impact on Fundraising & Growth) 

Funders don’t take financial mismanagement lightly. Even unintentional reporting errors can erode trust, resulting in fewer grants, hesitant donors, and a long-term hit to your nonprofit’s reputation. Your nonprofit’s credibility is one of its greatest assets—don’t risk it with outdated systems. 

Sage Intacct: Your Ultimate Survival Tool 

Just like Naked and Afraid contestants should never head into the wild without a fire starter, nonprofits should never manage federal grants without a financial system designed for compliance. That’s where Sage Intacct comes in. 

• Proven Leader for Nonprofits – Sage Intacct is ranked #1 in customer satisfaction for nonprofit accounting software on G2, with over 3,000 nonprofits relying on it. 
• Audit-Ready Reporting – Automates SEFA tracking and compliance, reducing audit risk and saving hundreds of hours in reporting. 
• Multi-Grant Tracking – Ensures funds are properly allocated, eliminating errors that could jeopardize future grants. 
• Real-Time Financial Insights – No more waiting until month-end to understand where your nonprofit stands. 

With the right system in place, nonprofits can stop just “surviving” grant management and start thriving. 

BPM: More Than Accountants—Your Nonprofit Success Partners 

At BPM, we don’t just help nonprofits with accounting. We live and breathe nonprofit finance.  

• As a Certified B Corp, we are deeply committed to organizations that serve others. Nonprofits are one of our most prevalent industries, and we have specialists in nearly every sub-service line—grant management, financial strategy, compliance, tax, and technology consulting. 
• We don’t believe in one-size-fits-all solutions. We take the time to understand your organization’s unique challenges and help you build a financial infrastructure that supports your mission. Whether it’s implementing Sage Intacct, streamlining grant tracking, or preparing for an audit, we’re here to make sure you have the systems and strategies needed to succeed. 

We work with nonprofit leaders who are incredibly smart, resourceful, and passionate about changing the world. They should be spending their time driving impact—not stressing over grant reporting issues. That’s why we care about helping nonprofits get their financial house in order—because when your finances are strong, your mission can thrive. 

Your Mission Deserves Better. Let’s Talk. 

If your current system feels like an outdated compass leading you in circles, it’s time for an upgrade. With the right financial tools in place, your nonprofit can move from merely surviving grant management to thriving—without the stress, compliance headaches, or financial uncertainty. Let’s talk about how BPM and Sage Intacct can help you stay on course, stay compliant, and stay funded — allowing you to focus on what truly matters: making an impact. 

(And if you ever need a good Naked and Afraid recap, my husband’s always ready to share his professional analysis.)