5 Nonprofit Accounting Trends for 2015
To get a handle on what’s in store for 2015, NonProfit PRO rounded up some of the nonprofit industry’s finest, who were kind enough to share their nonprofit trends for 2015. Here are five accounting trends.
Erika McNichol, senior product manager, Abila
1. 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.
2. 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.
3. 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 buildings to selling products related to the mission. This thinking was initiated during the economic downturn but will continue to gain steam and will require the ability to track and manage new revenue sources in 2015.
4. System integration: Increased integration between different systems — such as accounting and fundraising — will be essential to improve data quality and efficiency.
5. 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 midsize and larger organizations.