Growth, collaboration, and a concentration on fraud and data security will be impactful nonprofit accounting trends in 2016, according to nonprofit software provider Abila.
The Nonprofit Finance & Accounting Study conducted by Abila, provider of software and services to nonprofits, associations and government entities, revealed that 70 percent of nonprofit organizations expect to grow in the next three years, with the consolidation between organizations with similar missions one expected catalyst.
For the study, Abila surveyed more than 350 nonprofit finance and accounting professionals representing organizations across a range of industries and with annual revenue ranging between $1 million and $50 million-plus.
Nonprofit finance teams also reported a strong trend to smaller, leaner finance teams, which the study suggests will require better succession planning to ensure future stability.
Abila also found collaboration between departments—especially between fundraising and accounting—will be necessary to move organizations from tactical to more strategic thinking and to create stronger integration between technology and software systems, especially fundraising and fund accounting.
Organizations will also seek out for-profit partnerships with corporations, according to the study, mutually benefiting companies wanting to boost their social profile and nonprofits needing new revenue streams.
In the meantime, fraud and data security continue to be major issues for nonprofits, with Abila expecting key countermeasures and purpose-specific technology to help organizations prevent and alleviate these threats.
“Dollars and people are the key themes for nonprofit accounting going into 2016,” stated Dan Murphy, product manager for Abila MIP Fund Accounting. “Growth of the organization, whether through new funding sources or revenue-generating partnerships, is going to be essential. Additionally, building strong, lean teams with an eye on succession planning is going to be top-of-mind for many organizations, as well. Nonprofits that can find the right balance of collaboration, growth, and personnel are going to be well positioned for success now and in the future.”
Murphy spoke more about the study and 2016 nonprofit trends in an Abila video interview.
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