How Donor Management Software For Nonprofits Can Help Ensure Transparency

By Sanford P. Thonne

There are many people that are passionate about issues that are close to their hearts and a number of them take steps to provide services that they deem to be important. In such cases the law makes provision for the founding of a very special type of company that is able to implore the public, other businesses and government agencies to support their cause. Working with donated funds makes the use of donor management software for nonprofits a very high priority.

Many people that are passionate about specific causes have no management training and even less financial management experience. This has often resulted in accusations of financial misconduct and irresponsible spending. The result is often sadly the closure of facilities and services that set out originally with noble aims but that were discredited because they were unable to properly manage the funds placed in their care.

Another contributing factor that often leads to financial mismanagement and even theft is the fact that these organizations are often dependent upon the services of volunteers. This means that there are often more than one individual that is involved in the receipt, recording and spending of funds. When funds cannot be accounted for, it is often very difficult to pinpoint the responsible person.

The laws regulating the fundraising efforts of these organizations are very strict. Working with public money is an awesome responsibility and it is imperative that proper financial management systems are implemented and maintained. If they cannot do this, they risk losing their credibility and their sources of funding.

Special computer programs have been developed to help non profit organizations to comply with all the strict financial management requirements placed upon them. These programs can help to keep track of donations, to manage donor databases and to provide information in almost any format at the click of a button. In most cases the programs are user friendly and fully supported by the suppliers.

The selection of a specific program should be approached with some circumspect. The software should comply with all the legislation that governs the management of donated funds and it should make provision for multiple users. Care should be taken to use a supplier that will be able to make adaptions and to make sure that the program is updated on a regular basis.

Donor management software for nonprofits can go a long way in helping charity organizations to not only manage their finances, but to prove to their donor base that they are responsible and careful with the funds placed in their care. Any organization unable to do this faces the risk of losing the support of their supporters and finding themselves unable to continue valuable and necessary services.

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