3 reasons you need to optimize your funding allocation
Expectations of tech are on the rise, and often the tech we’re using isn’t meeting them. This reduces your ability to deliver impact, and what you can achieve as funding availability continues to shrink.
So what are the 3 biggest headaches tech are causing you, and how can removing them help you optimize your funding allocation?
1. Optimizing funding allocation: why does it matter?
Research shows that many nonprofits are in urgent need of modernization. Their use of outdated processes and legacy software is hindering their efficiency. Trying to manage these systems in the face of increasing operational complexity and a considerable productivity challenge is becoming too much for many of them.
To find a better way, we need to first understand how your systems stop your people from achieving what they need to with the funding they have.
2. Repeating the same mistakes
According to research, workers lose one-third of their time a year to admin, completing tedious administrative or repetitive tasks that your systems should automate as much as possible. This means your people have less time to focus on your mission. And are wasting valuable funds doing tasks they don’t need to over and over again.
3. Productivity ceiling
Lost productivity is costing those working in service industries more than $5 trillion a year. And this wasted time spent on admin has contributed to near historic low productivity growth in the US and Western Europe. This has often been caused by outdated technology that is no longer able to cope with the evolving modern workplace.
Outdated systems are out of excuses
Outdated systems impact more than just productivity levels. These systems limit how nonprofits can manage all aspects of their organization. Leaving many using ill-equipped or extremely cumbersome processes to do even the simplest tasks. The systems they use for efficiency are actually causing inefficiency.
How can nonprofits optimize funding allocation?
You can address increased competition for funding, satisfy rising donor expectations, and meet the increasing need to demonstrate impact – if you have the right systems. But to make your digital transformation journey a success, you will need to invest in ERP technologies that optimize your project grant funding and management.
Using leading grant management tools, you will meet audit requirements and donor reporting demands and recover more of their costs against grants to free up precious, unrestricted funding to grow their organizations. Furthermore, by managing your grants better, you can develop stronger donor relationships, which will ultimately generate more money to help you drive impact.
Doing this frees your people from the burden of repetitive and unnecessary admin tasks. Allowing them to focus more of their time and attention on work that matters to your nonprofit.
How do you achieve optimized funding allocation through digital transformation?
The most critical step is realizing that outdated legacy systems need to be replaced. They were designed for the needs of yesterday’s organizations and create barriers to effective digital transformation, improved productivity, and successful delivery of your mission.
There are already solutions for hurdling the barriers that outdated technology systems create, and they are already commonplace. Forward-thinking nonprofits use these systems to manage complexity, engage donors, and improve productivity while making the lives of their people and those they serve better. And it’s done, partly, by reducing — or eradicating — low-value tasks to create space for your people to do more work that really matters.
Meaning you can transform work to be more meaningful through self-driving and adaptive software that intelligently automates administrative tasks, like check grant restrictions and accounting for program expenses. This elevates engagement and helps you attract and retain the best people — all working to make your funding allocation as efficient and impactful as possible.