How ERP Systems Benefit Nonprofits with Remote Employees in 2024

Five nonprofit team members look at their nonprofit ERP system to gather data on how to help fundraise for their events.

The role of ERP systems within nonprofits is not just confined to a software solution. It's a comprehensive tool, tailored specifically for the unique needs of charitable organizations. Whether it's project management, asset management, customer relationship management (CRM), or financial management, ERP systems bring all these functions into a single system. This results in enhanced operational efficiency, particularly beneficial to nonprofits with remote employees.

The ERP software market, which experienced a 9% growth rate in 2019, is projected to exceed $49.5 billion by 2025. A significant portion of this growth is expected to come from administrative ERP, encompassing financial management. More and more nonprofit organizations are adopting ERP systems, recognizing their potential benefits and cost savings, especially in managing remote teams efficiently.

How Enterprise Resource Planning Software Streamlines Business Processes

ERP software comes to the rescue of nonprofits, helping them streamline their business processes and reach maximum efficiency. Whether it's procurement, project accounting, or donor management, an ERP system brings all these functions under one umbrella, eliminating the need for multiple programs.

For instance, Goodwill Industries, a renowned non-profit organization, implemented an ERP solution to manage its diverse operations across multiple locations. The result? Improved efficiency, better visibility into operations, and significant cost savings.

Financial Management and Reporting with ERP

Robust financial modules provided by nonprofit ERP software enable tracking and reporting on income, expenses, budget, and overall financial performance. They also assist with expense tracking, fund accounting, and grant management, offering real-time visibility into financial workflows and enabling nonprofits to make sound financial planning decisions.

A case in point is the American Cancer Society, which leveraged ERP software to streamline its financial workflows. This led to increased transparency, improved financial reporting, and enhanced ability to track expenses and manage funds.

Enhancing Customer Relationship Management (CRM)

Integration of CRM with ERP systems can take donor management to another level, fostering stronger donor relationships. Additionally, features like case management and program management can further aid nonprofits in managing their interactions with donors and beneficiaries.

Take the example of Oxfam, an international non-profit organization, which used an ERP system to improve its donor management process. The result was improved donor relationships, increased donations, and streamlined operations.

Human Capital Management in ERP Systems

Many ERP solutions come bundled with a Human Capital Management (HCM) solution. This allows nonprofits to manage their human resources more effectively, tracking time spent on more projects, and ensuring regulatory requirements are met.

How ERP Systems Benefit Nonprofit Organizations Working Remotely

Working remotely has become a popular choice for many nonprofit organizations, and cloud-based ERP systems have played a crucial role in enabling this transition. Regardless of size, industry, or budget, implementing a cloud-based ERP system can greatly enhance the efficiency and organization of nonprofit operations while allowing work to be done remotely. Below are some of the reasons why nonprofit organizations choose to work remotely and the benefits they can gain from using an ERP system in a remote work environment.

Reasons Nonprofit Organizations Choose Remote Work

Nonprofit organizations have various motivations for opting to work remotely. Some of these reasons include:

Budget Constraints

Limited resources often prevent nonprofit organizations from renting commercial spaces.

Access to Talent

When the required skilled employees are not readily available in close proximity, remote work allows organizations to assemble teams without the need for a physical office.

Improved Productivity

By providing employees with flexibility and independence, remote work can lead to increased productivity and job satisfaction.

Health Crisis

Situations like the COVID-19 pandemic make it difficult for employees to commute to the office, making remote work a viable alternative.

Benefits of Remote Work for Nonprofit Organizations

Implementing a cloud-based ERP system offers several advantages for nonprofit organizations working remotely.

Time Savings

Working from an office often involves time wasted on commuting and other unnecessary activities. With a cloud-based ERP system in place, employees can focus more on important tasks without these time-consuming distractions.

Cost Reduction

Nonprofit organizations must keep costs down to ensure long-term success. Remote work eliminates expenses such as fuel, utilities, transportation, lunch, and rent, resulting in substantial savings.

Enhanced Flexibility

Remote work provides employees with greater comfort and flexibility, leading to increased job satisfaction and improved efficiency.

Using an ERP System and Nonprofit ERP Software for Remote Work

Contrary to popular belief, enterprise resource planning (ERP) software is not exclusive to major corporations. Nonprofit organizations can also benefit significantly from the flexibility and remote capabilities offered by ERP systems.

Implementing these systems is a worthwhile investment for nonprofits seeking continued success.

Here's how ERP software can help nonprofit organizations work remotely:

Efficient Fund Management

Dynamic fund management is crucial for nonprofit organizations. An ERP system designed for nonprofits helps organize financial data, including investment expenses and grants, providing a precise view of the organization's financial situation.

Streamlined Grant Management

Managing grants efficiently is essential for nonprofit organizations' ongoing operations. When working remotely, it becomes challenging to share relevant information among employees.

However, incorporating an ERP system allows for real-time flexibility, enabling employees to access and share important documents easily.

Accessible Anywhere

Accessibility is a vital aspect of ERP software implementation for nonprofit organizations. With an ERP system in place, employees can access the management system from anywhere in the world, removing geographic and time barriers while maintaining efficiency and security.

Choosing the Right Software - ERP for Non Profits

As we move into 2024, it's clear that ERP for nonprofits will continue to play a vital role in the nonprofit industry. With its ability to streamline business processes, enhance financial management, improve donor relationships, and increase efficiency, the right ERP system is indeed the key to success for any nonprofit organization.

Ready to learn more? Download our guide today to learn how Sparkrock 365 can help increase your nonprofits' efficiency.

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With Sparkrock 365, you'll have the tools to manage your finances and workforce more efficiently so you can focus on what you do best. Go from paper-based processes to intelligent online workflows, and access the data you need to make a real difference in your community.
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