Focus on Nonprofit Software: Integration, Implementation and Intrinsic Value
By Scott H. Cytron, ABC
Doing more with less is the mandate for most organizations today. Sources of funding are tighter, government spending on many organizations is curtailed and there is more competition for existing dollars from private and public sectors. The result is a heavier reliance on technology to manage and streamline the business, while extending its efficiency and effectiveness with raising funds.
Nonprofit software evolved from the need to handle functions like fund accounting, encumbrances and fundraising that are not adequately handled by traditional for-profit software. Software companies, large and small, reside in this space. Individuals like Dan Cooperstock of Canada write and distribute nonprofit software. More well-known offerings from software behemoths like Intuit (QuickBooks Nonprofit Edition) and Best Software (MIP Fund Accounting) round out sector offerings and are fully integrated packages. However, the vast majority of software in this space is offered by firms that specialize in nonprofit software. Many of these firms, such as Campagne Associates and SofterWare, Inc. have fundraising modules that interface with popular accounting packages. Some vendors, such as Araize Inc. and Blackbaud, Inc., offer their own integrated fund accounting packages, along with their fundraising modules.
Technology doesn’t stand still. The Internet, a virtual infant only a decade ago, has matured and revolutionized communication and solicitation. Kintera Inc., a company that claims to have more than 15,000 customers, is an example of a provider that manages marketing, communications, programs, services and fundraising through Web- hosted offerings. Recognizing the importance of having a complete solution for customers, Kintera announced in April at its National Users Conference the integration of the Kintera Sphere Software platform with FundWare (acquired from Intuit in December) and Microsoft Business Solutions–Great Plains software. Kintera developed and released “Export to Accounting” to support this integration. Kintera SphereSoftware modules include fundraising, content managed Web site, CRM and Kintera Fundware. Some features in the fundraising module include donation forms, multi-level donation forms, dynamic ask levels, multiple giving options, bookkeeping and reporting, matching gifts, soft credits and hard credits, tribute and memorial cards, and donor management system compatibility.
Here are just a few of the packages in detail. Accompanying this story is a full listing of 45 packages gleaned from research conducted over the Internet.
Blackbaud
Headquartered in Charleston, S.C., and with operations in Canada, Scotland and Australia, has provided software and related services designed specifically for nonprofit organizations for more than 25 years. Its Raiser’s Edge software supports traditional and diversified fundraising methods, automates administrative processes, and provides insightful reports. Functions included in Raiser’s Edge include Contact Management, Operational Management, Relationship Cultivation, Diverse Fundraising Methods, Communication about Organizational Effectiveness, and Data Security. The Financial Edge is the company’s comprehensive financial management solution designed specifically for nonprofit organizations.
Blackbaud can be customized with the selection of various modules that include General Ledger, Accounting Forms, Accounts Payable, Accounting Queue, Accounts Receivable, Advanced Budget Management, Advanced Security, Allocation Management, Budget Management, Cash Management, Cash Receipts, Consolidation Management, Electronic Funds Transfer, eRequisitions, Fixed Assets, Payroll, Point of Sale, Project, Grant and Endowment Management, Purchase Orders, and integration with the Raiser’s Edge. Tightly integrated with the Raiser’s Edge and the Financial Edge is Information Edge, a tool that provides a holistic view of constituent, financial, and program activities to better monitor mission performance and share insights at all levels of the organization.
SofterWare
This privately held company in Fort Washington, Penn. was founded in 1981, and claims a stable of clients of 10,000 strong. This company provides a traditional PC/network solution, as well as a Web-browser version of its DonorPerfect software that can either be ASP-hosted or installed on a company’s network. Its core strength is its ability to store all constituent information in one database. This allows agencies to target constituents with various messages, as well as enable everyone to assist in maintaining accurate information, avoid duplicate mailings, and have a single history of contacts and transactions.
DonorPerfect provides the tools for tracking and managing direct mail, capital campaigns, grants, annual giving, telethons, major donor cultivation, endowments, planned giving, and special events. The software allows the entry, recognition and management of gifts, pledges, soft credits, matching gifts, in-kind donations, memberships, credit card payments, bank drafts and online donations. While the package has many pre-designed reports with drill-down capabilities, it also includes a customer report writer to modify and create reports.
Best Software
Best Software is a software giant with more than 2.3 million organizations in North America using its software. It acquired MIP in 2001. Today, the company claims more than 7,000 organizations use its MIP not-for-profit software. Three versions of the software exist to serve different sizes of customers. The Intro version targets smaller nonprofits with annual budgets of $1M or less, Pro is for mid-sized organizations, while Advantage focuses on large non-profit organizations to help them maintain FASB compliance and demonstrate financial credibility. MIP Fund Accounting addresses the specific needs of nonprofit organizations that need to track and report on multiple funds across many budget periods. MIP’s fund accounting software helps nonprofit organizations meet their nonprofit-specific reporting requirements with Built-in, FASB-Compliant Reporting
Nonprofits can't afford to jeopardize crucial funding by failing to follow stringent, nonprofit-specific reporting requirements. A flexible, built-in report writer helps create reports that meet the varying requirements of funding sources, internal management and boards. The MIP Fundraising software also has various flavors depending on organization size and requirements. It handles prospect and donor tracking; manages events, volunteers, and members; gift processing; communications; and reporting. CRM and reporting capabilities are expanded as you move from the Paradigm version to the Rainbow version, and the Millennium edition is Web-based that runs on Internet or intranet applications, and can be used to manage campaigns and events, track donors and create reports.
Intuit QuickBooks
As with Best Software, Intuit offers multiple versions of its QuickBooks Nonprofit software. The Premier version supports up to five users, while the Enterprise Solutions supports up to 10 simultaneous users. Eight reports specific to nonprofits are included. The packages also generate the Statement of Functional Expenses – 990 Form, as well as personalized thank-you letters, pledge forms and receipts. Templates can be created for the documents and envelopes just once in Microsoft Word and then used for selected contacts from QuickBooks.
One new feature with the most recent release is the ability to generate pledge acknowledgement letters. Donor information and amounts are entered into the QuickBooks pledge form before clicking a button to send the information to an acknowledgement letter template created in Word. Detailed information, such as the pledge amount, can be included with no typing. One other nonprofit specific feature is the Unified Chart of Accounts (UCOA) included in the package.
Choices, Choices
Nonprofit organizations should not feel like they must “make do” with software created for “For Profit” entities. A multitude of packages exist specifically for the nonprofit space that range from the traditional PC based application to those that run on the Web. Identify the functions and features that your organizations need. With that information, you will be equipped to seek the solution that maximizes your efficiency and effectiveness.
Nonprofit Software
990 Accountant, Inc.
AccuFund, Inc/Accounting Suite
ACS Technologies
Advanced Data Systems
Araize, Inc./FastFund Nonprofit Software
Auction Systems
B2PCommerce Corp/NonprofitBooks Office
Best Software/MIP Fund Accounting
Blackbaud, Inc./Financial Edge/The Raiser's Edge/The Information Edge
Campagne Associates
Certain Software, Inc.
Church Community Builder
Cougar Mountain Software/FUND Suite
Crescendo Interactive
CYMA Systems Inc./CYMA Not-For-Profit-Edition
Dan Cooperstock
Data Pro Inc.
Donor 2
Donor Strategies, Inc.
DonorExpress
Easy-Ware Corporation
eTapestry.com
Executive Data Systems, Inc./Fund Accounting and Donor Records
FUND E-Z Development Corp.
GOLDEN FUTURES FOUNDATION
Helix Ltd.
Herlick Data Systems
Hunter Systems
Intuit/QuickBooks Nonprofit Edition
Kintera, Inc./FundWare
Kintera, Inc./Sphere Software
Melissa Data Corp.
Metafile Information System Inc.
Peopleware, Inc.
PG Calc Incorporated
Public-Sector Solutions
RuffaloCODY
Serenic Software
SofterWare, Inc./DonorPerfect
SofTrek
Target Software, Inc.
Telosa Software, Inc.
TMA Resources, Inc.
TowerCare Technologies
Volunteer2
About Author:
Scott H. Cytron, ABC, is an accredited communications and public relations consultant working in the accounting, healthcare, high-tech and finance industries. Co-author of AICPA’s 2004 Top Technologies, he can be reached at scott@cytronandcompany.com or through his Web site, http://www.cytronandcompany.com .
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