One of the biggest concerns for all nonprofits is how to show donors their contributions are being used appropriately. That being the case, there are many different ways nonprofits can use financial reporting software to gain the trust of their donors and the public in general.
Thanks to the internet and social media, nonprofits and charities have greater opportunities than ever to fund raise and reach further and further out to new target groups. This is a definite plus.
On the flip side, all of this exposure can result in negative reviews and commentaries that end up generating more hits or views than any positive news the organization generates. This can lead to a distortion in the way the public perceives the organization’s operating and stewardship capabilities.
One way to combat this – as demonstrated by the top many charities and nonprofits – is to incorporate the use of financial reporting software to gain trust. With highly effective and streamlined software programs designed specifically for multi-entity or multi-location nonprofits, reports can be easily and openly provided to donors and stakeholders.
This will not only further a comprehensive understanding of the organization’s financial status but also track donations ensuring there are no questions about how funding is being used and applied.
Working with others
One of the worst things that can happen to a nonprofit is to partner with another organization only to later discover they do not have a good reputation or have been linked to shady business practices. The right software can eliminate any issues in this area by having the organization and the partner sync their accounting files as a form of full disclosure to both groups’ supporters and stakeholders.
This not only helps verify there are no fraud issues going forward but it also gives both organizations the ability to view retroactive records to spot any irregularities, discrepancies or reporting practices that are unacceptable.
Tracking specific donations
Another important way that nonprofits can use financial reporting software to gain trust is to provide up-to-the-minute reports on the use of donations to their donors and stakeholders. The right software will be customizable, update automatically and offer unlimited free logins to make it easy to show financial specifics to donors.
Additionally, using financial reporting software to perform daily syncing allows the leaders of multi-location organizations to have immediate access to any information on any possible errors, omissions or irregularities.
This limits any possible illegal or fraudulent activity on a daily basis which allows the nonprofit to address the issue immediately and limit the possibility of long-term issues that are going to decrease trust.