Abila Predicts Key Nonprofit Accounting Trends for 2015
Data visualization, non-financial reporting and entrepreneurial modeling are key
January 7, 2015 – AUSTIN, Texas –Abila, the leading provider of software and services to nonprofits and associations, today shared its predictions that will have the biggest impact on nonprofit accounting in 2015: Presenting data visually will play an important role; finding ways to share non-financial data will be important to showcase the work an organization is doing; nonprofits adopting entrepreneurial and business models will continue to rise in prevalence; increased integration between accounting and fundraising systems will be essential; and compliance with Affordable Care Act rules and regulations will be necessary.
“The accounting discipline for nonprofit organizations continues to evolve into a more strategic role,” said Erika McNichol, senior product marketing manager for Abila MIP Fund Accounting. “The tracking of dollars and understanding the impact an organization is having toward its mission is critical. There are opportunities in 2015 for organizations to accelerate the strategic role of accounting, and those that do will reap the benefits and see a greater degree of success.”
Key Nonprofit Accounting Predictions for 2015:
- Data Visualization: Presenting an organization’s financial story and success visually will be key in 2015. Board members and supporters want to be able to quickly and easily consume and understand data an organization is presenting to showcase how they are accomplishing their mission and insight into how funds are being used.
- Non-financial Reporting: The ability to report on impact beyond financial measures is a must. Younger generations expect greater transparency and accountability from the organizations they support. Nonprofits need to show the journey of a dollar toward supporting a mission–from reporting on a project that is happening to tracking activity related, to the project, to how the dollar donated had an impact on the project.
- Entrepreneurial Modeling for Nonprofits: Nonprofits that will be successful in the future will go beyond just raising dollars to sustain the mission and now will look at how to grow the organization. Organizations will look at new and creative ways to generate revenue, from renting out space in their own building to selling products related to the mission. This thinking was initiated during the economic downturn, but will continue to gain steam and require the ability to track and manage new revenue sources in 2015.
- System Integration: Increased integration between different systems–such as accounting and fundraising–will be essential to improve data quality and efficiency.
- Affordable Care Act Compliance: 2015 will be unique for organizations to ensure payroll and HR systems are aligned to accommodate changes brought about by the Affordable Care Act. This is particularly a factor for mid-size and larger organizations.
“2015 will be a time of opportunity for many organizations,” said McNichol. “The changing demographics of the supporter base, as well as greater scrutiny from supporters and board members will give organizations an opportunity to showcase the great work they are doing to make a difference in the world. Organizations that seize the opportunity will have success.”
Abila is the leading provider of software and services to associations and nonprofit organizations that help them make better decisions, execute with greater precision, increase engagement, and generate more revenue. With Abila solutions association and nonprofit professionals can use data and personal insight to make better financial and strategic decisions, enhance member and donor engagement and value, operate more efficiently and effectively, and increase revenue to better activate their mission. Abila combines decades of industry insight with technology know-how to serve more than 8,000 customers across North America. For more information, please visit www.abila.com.