The impact that nonprofits deliver are irrefutably powerful. Any nonprofit strives to maximize effectiveness and efficiency in order to direct every ounce of effort and every single cent toward their mission and their cause.
These impacts mean so much to so many people — they are the sources of “good” that feed communities and keep them vital. The impacts might be immediate, such as a food bank or a course that delivers English classes to newcomers. Or they might be “bigger picture” effort with long-term effects.
Let’s look at how social impact is defined and how delivering on a mission can be enhanced and amplified by improving collaboration at the finance team level and across an entire organization.
What is social impact?
Every nonprofit seeks to make an impact. Defining or outlining how this will be done is an ongoing concern. As well, social impact is becoming an integral part of corporate philanthropy and brand identity.
Universities Canada — the advocacy group for Canadian universities — defines social impact as “the positive outcomes of initiatives that tackle social, economic, environmental and cultural challenges faced by people, organizations and communities.”
While delivering solutions that meet these criteria may be the tangible and noble goal of many nonprofits, monitoring and measuring the results can be challenging. But this is absolutely necessary in order to assess success and to improve in areas that are underperforming.
How finance team collaboration improves and accelerates social impact for nonprofits
Collaboration is the key to success — and efficient collaboration within a nonprofit has many benefits. It makes working together fun, for one thing. And people who are having fun, do it faster, more creatively and with more impact.
The key to effective collaboration involves embracing technology. Finance transformation using cloud-based financial management tools has been proven to amplify results at nonprofits and lead to greater success in many arenas.
Here are three ways finance transformation is effective for nonprofits.
1. Informed decision-making leads to better resource deployment
Leaders make better decisions when they have all the facts — that are up-to-date, accurate and presented in a clear and contextual manner. Modern cloud-based finance tools allow for easy, real-time analysis of data, which equip the finance team with everything they need to provide to stakeholders such as the CFO, CEO or Board.
2. Strong internal communications keeps the team focused
When each individual member of a nonprofit can easily and securely access the data they need, they can more effectively execute their roles. With modern and integrated cloud-based tools, staff can share data and commentary with the right people at the right time — even across departments.
3. Finance efficiency leads to mission focus and maximized impact
An efficient organization is able to maximize the deployment of resources and money to the impacts that matter rather than squander them because of friction created through outmoded operations and administrative tasks. Efficiency is achieved through integration of systems and automation of mundane activities, so the team can focus on delivering services and solutions.
The takeaway: Collaboration equals social impact
Nonprofits that adopt modern financial management tools see immediate positive outcomes across the board. For nonprofits looking to amplify their social impacts, embracing digitization should be seen as a strategic imperative.
To learn more about Sage, the #1 cloud financial management platform that lets you pursue your mission more efficiently, visit Sage Intacct for Nonprofits here.
