With a landscape that is ever changing, it is important to look to the future in order to be prepared for what is coming next. As a part of their mission to help non-profits with financial, accounting, and software solutions, Abila has put out their predictions for non-profit finance and accounting in 2017. Let’s take a look at what the experts from Abila see as the most important trends for this year.
Issues With Funding Instability
It is expected that the non-profit sector will experience funding instability in 2017 and beyond. Grantors are expected to focus their funding on mobilization instead of intervention – essentially going for an approach that is preventative instead of responding to situations after they occur.
With a high potential for grant reductions in the future, organizations will have to look to funding diversification in order to mitigate the problem. Abila also recommends that non-profits should plan for a reduction in services in case funding comes up short. While this is a worst-case scenario, it is important to have these plans in place in order to lessen the impact of a potential funding shortfall.
Structural Staffing Changes will be Needed for Non-Profits
The Fair Labor Standards Act is also expected to cause much uncertainty in the non-profit sector. With new rules for overtime and wages, many non-profits are expected to make changes to the structure of their workforce and the classification of employees. In an effort to save money, some may look to make adjustments to compensation and there could be an increased push toward using part-time labor over full-time employees.
Before making these types of adjustments to the workforce, a non-profit needs to make sure that they understand the new rules, and they have to take the effort to analyze the potential impact of structural changes.
Non-Profits Will Consider Clustering
For many organizations, the response to potential funding shortfalls will be to ally themselves with other non-profits that have a similar mission or serve a common demographic. Some of these organizations will also look to shift toward specialization, instead of branching out into new areas.
Clustering can be a good option for non-profits that are looking to save resources and cut down on overhead. If you can find a likeminded organization that works in the same area, you could cooperate on events, share space, and possibly have crossover in staffing.
Non-Profits Will Use Technologies to Gain Efficiencies
With the rules, regulations and processes of the non-profit world getting more complex with every year, more organizations are going to look toward technologies that can help to streamline and automate various tasks. Cloud solutions can be used to allow employees to work remotely, and a range of compliance processes can be automated through the use of software applications.
In this goal, it is important for non-profits to review their investment in software solutions. Consider whether there are ways that you could save money by investing a little more in technology solutions, and consider whether there are ways that you could improve upon various processes by using software.
For-Profit CFOs are Moving to Non-Profit
Recent years have seen an increase in for-profit professionals moving to the non-profit sector. As this trend continues, we can expect to see a greater focus on financial performance and shift toward more data-driven solutions.
Many non-profits have people in key financial positions that have little to no financial training. As professionals come from the for-profit sector, non-profits will be able to be a little more selective when hiring people to fill these positions.
As 2017 continues, there are going to be some big changes. Many of these are going to require complex solutions, and these organizations are going to need help if they want to respond effectively. SYGNVS has been providing these solutions to businesses, government agencies and non-profits for more than 40 years. Contact us today to learn more about how we can make sure that your organization is ready for what the future holds!