Overcoming Nonprofit Sector Challenges in the New Year

Leaders in the nonprofit sector are likely tendering their strategies for 2017 and need to be aware of some of the challenges they face while doing so. The American economy is, by many measures, resurgent going into the new year, meaning more opportunities to increase donations. However, nonprofits must optimize their operations and processes to take full advantage of a healthier financial landscape, and this begins with understanding the potential impediments facing the sector.

Let’s look at some of the obstacles and trends that are expected to affect nonprofits through the next 12 months.

The talent gap has begun to hit the nonprofit sector.

According to the news provider, nonprofits were most negatively impacted by turnover in 2016, which subsequently puts them behind the eight ball when trying to maintain a fully staffed workforce. Citing data from tax advisory firm Marks Paneth, the website explained that nearly two-thirds of nonprofits surveyed could not gain control of employee churn in the past year. This issue might only accelerate as time goes on.

Skills shortage enters the nonprofit arena

The Nonprofit Times recently reported that organizations are indeed facing increased levels of demand and support thanks to a stronger economy, but that they are also struggling to keep up because of an inability to find and hire employees with the right skills. The talent gap has been a major problem for a range of industries throughout the past few years, as positions are left vacant because prospective members of the hiring pool have not received relevant education and training.

Staffing strategies will need to be prioritized heading into the new year. Keep in mind that certain tasks that would go otherwise uncovered because of workforce issues can often be automated today, especially if they are in the accounting department. Donation, workflow, and records management processes are well-suited to today’s software and automation tools.

Taking the next step toward higher donations

Forbes contributor and Open to Hope Foundation Founder Dr. Gloria Horsley recently published a blog post regarding her perspectives on the new year. She affirmed that nonprofits would need to become a bit more focused on technology, especially when it comes to how those solutions impact donor relationships, in the near future. For one, Dr. Horsley pointed out that marketing technologies play a vital role in attracting prospective constituents but that nonprofits need to keep a very “human” element within their advertising efforts.

Another important technology to consider, the author wrote, is mobility, which she believes can help to improve user experiences both internally and externally. For example, Dr. Horsley stated that the use of mobile solutions for a more seamless donor experience should become commonplace, as consumers increasingly prefer to use their smartphones for many payment-related activities.

Optimizing accounting departments

Nonprofits need to remain highly fleet-footed to compete in this increasingly crowded space. Optimal operations in the accounting department can go a long way toward achieving maximum agility. To modernize their accounting processes, nonprofits can leverage solutions that automate record, workflow, and donation management tasks. Additionally, deploying an invoice and donation management system to streamline accounts payable and receivable will have a positive impact on the average nonprofit.

To learn how PairSoft can help your business capture, integrate and automate your business processes, feel free to watch our personalized demonstration or visit our case studies page to read about our clients’ success stories.