Nonprofit organizations benefit significantly from outsourcing their finance and human resource needs. Since nonprofits depend heavily on grants and donors to fund their missions, funds for overhead costs can be scarce. This can also make recruiting and retaining efficient talent difficult.
Outsourcing bookkeeping services provides access to the latest software and business practices that nonprofits are not usually equipped to adopt or implement. These tools increase the quality, security and efficiency of finance and HR services. Outsourced finance firms offer more streamlined procedures because efficiency is how they make a profit. A win-win. Outsourcing firms also provide these extra benefits at a fraction of the cost of recruiting and retaining an employee.
Consultants also provide nonprofits with an extra layer of financial security by creating internal controls. They reduce the risk of sensitive knowledge being taken from your organization when an employee leaves or is terminated. Additionally, they reduce the risk of costly penalties for errors in various types of legal reporting by providing their clients with the latest federal and state regulations in regards to their finance and HR practices.
In conclusion, outsourcing a nonprofit’s finance needs allows them to focus on their sole purpose while maximizing their limited funding.
- A Study Conducted by the Management Assistance Group In Partnership with the Eugene and Agnes E. Meyer Foundation; Outsourcing Back-Office Services in Small Nonprofits
- Nonprofit Coordinating Committee of New York: A Nonprofit Guide to Outsourcing, October 2012