Management Reporting vs Compliance Reporting
Nonprofit organizations are well-versed in the reporting process. Showing transparency and sharing information with the board of directors, the membership, funders and granting agencies requires a lot of communication and detailed reports. There is a difference between preparing management reports and compliance reports and it starts with presentation.
Reliable data and detailed reports are a priority for nonprofit organizations and are used in a number of different ways. Nonprofits may be subject to industry or regulatory compliance obligations, must comply with the reporting terms of grant agreements, and need to illustrate to the board of directors and internal stakeholders whether and how programs and services are supporting the mission. This is the point at which data and reporting can get confusing since the management team and outside partners each require different types of information in a variety of formats. The best way to differentiate data, and its purpose, starts with technology.
Manage Data and Strengthen Reporting with Modern Nonprofit Management Solutions
Modern financial management solutions offer a more efficient way to capture, analyze and report on the data being generated by nonprofit organizations on a daily basis. A single, integrated solution can manage financial operations including a variety of income sources, such as membership fees, grant funding, program or services income, donations and other funding sources. Budgets can also be established for each individual grant program, as well as the nonprofit organization as a whole. These solutions provide your management team with a simple, yet powerful, way to understand and present data through customizable dashboards and reporting features.
Dashboards can be tailored to the unique needs of each your team. For example, a manager can monitor a specific grant to ensure milestones are being met and budgets are being adhered to. Other managers can follow key performance indicators (KPIs) to determine whether certain programs or services are meeting targets. Armed with real-time data, your team can prepare financial, compliance, regulatory and operational reporting for the board of directors, organization leadership, funders, regulatory agencies and the public.
Preparing the management reports needed to run a successful nonprofit organization is different from preparing the compliance reports requested by regulatory agencies. Different reports require different data, yet all of this data, including both financial and non-financial performance data, is necessary for your nonprofit to achieve strategic goals and your nonprofit’s mission. Contact JMT Consulting Group for guidance with deploying the technology to support the complicated reporting process and provide the visibility needed to deliver on the mission.
By JMT Consulting Group, a national provider of technology and services to the nonprofit sector.