It’s important that nonprofits not only spend responsibly but at least save 10% of donated funds. Without saved funds, raising more funds becomes an uphill scramble. Saved funds can also go towards paying for unforeseen expenses such as maintenance costs. The more charity organizations save the greater the chances of survival.
Saving funds and spending responsibly are like siamese twins, it’s impossible to do the one without doing the other well. How do you know that your organization spends money responsibly? Here are five signs:
- At least 66.6% of all donations go towards servicing programs.
- Administration costs do not always exceed donations.
- Your organization has replaced a paper-based system with an electronic one.
- All charity programs have a plan.
- A well-run nonprofit organization is transparent.
When nonprofits use electronic PO systems such as Procurementexpress.com, a lot is achievable in just a few minutes. The Accounting director from Thomas Mountain Ranch LLC, Tricia Napolitano had this to say about Procurementexpress.com, “My team need to make PO requests when I’m away. Our paper based system takes days for me to see the PO’s and sign off. Procurementexpress.com, allows me to approve PO’s while on the road. Our bookkeeper gets records of everything, and I have instant view of the budgets. Simple, we setup our entire team and we’re up and running in a few minutes. Fast, 1 click approval or rejections to any PO is fantastic.”
Spending responsibly is possible only when nonprofits emulate Napolitano’s organization and try Procurementexpress.com. In this blog, I’ll show you how Procurementexpress.com can save you money and time.
Tweet this: A budget is a tool that guides nonprofits to spend donated funds in line with the organizational objectives.
Total control of budgeted funds
Nonprofits can’t spend funds responsibly without using a budget. A budget is a tool that guides nonprofits to spend donated funds in line with the organizational objectives. When nonprofits use PO systems such as Procurementexpress.com budgeting seems as easy as ABC. Here’s why:
- A budget is set up with a single approver, multiple approvers or single/multiple required approvers in the case of PO routing.
- A nonprofit leader can adjust a budget anytime or anywhere.
- A budget is archived or locked to prevent unnecessary expenditures.
This efficient software gives charity leaders total control over donated funds. Procurementexpress.com allows nonprofit leaders to grant access only to a few trusted individuals.
Budgeting is as easy as ABC
According to Nonprofit Accounting basics, a good budgeting process allows nonprofit leaders to adhere and implement organization’s objectives. There are many reasons why budgets don’t work for nonprofits. Let’s look at these obvious reasons:
- Charity organizations fail to restrict the waste of funds because they still use paper-based systems.
- Lack of monitoring of funds creates opportunities for theft.
- A budget doesn’t help unless it is properly implemented by management.
Procurementexpress.com makes budgeting seem as easy as ABC because the software is user-friendly. This is what Senior Manager from Ngee Ann, Hsien Yong has to say about Procurementexpress.com: “We have been waiting for someone to come along to develop this software. It’s easy to setup, simple to use and allows companies to keep track of their expenditure. We’ve been very happy and just want people to know about this great software.”
Accountability seems natural
Donors trust nonprofit organizations that are always accountable with their funds. They trust organizations with transparent financial policies for these three important reasons:
- Such organizations are honest in their applications for more funds.
- They use sound financial management policies that all finance employees have to adhere to.
- All their purchases are closely monitored by an efficient purchase order system.
Procurementexpress.com allows nonprofits to grow their programs and continue to do good. Any duplications of invoices or discrepancies are addressed just in real-time. Fraudsters do not stand a chance to steal charity funds as the software gives charity CFOs and COOs a total control over purchases. Accountability seems as natural as breathing!
Don’t let budgeting outsmart you. Sign up for a free trial today. Procurementexpress.com’s team is available 24/7 just to make sure that, you can budget like a pro. If you’d like more info about Procurementexpress.com (an automated purchase control system), please contact: [email protected]
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