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Efficient Integration Strategies for Fundraising and Finance Optimization

Learn how to seamlessly integrate fundraising and finance operations for improved efficiency, data integrity, and donor stewardship. Discover levels of integration, key success factors, and strategies to bridge the gap between finance and development requirements.

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Efficient Integration Strategies for Fundraising and Finance Optimization

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  1. Dan Barney Integration:fundraising and finance

  2. Overview Environmental Scan Levels of Integration Keys to Success

  3. Environmental Scan Too Frequently Motivations to Integrate

  4. Too Frequently… • “Every effort has been made to include all donors…”- The phone call - The lost donor • The Board Meeting Snafu • The Unanswerable Questions • Inefficient Process – Multiple Copies, Multiple Entries, Human Error

  5. Motivations to Integrate • Efficiency • Time Savings • Data Integrity • Donor Stewardship • Accountability • Peace of Mind • Everybody is Talking About It

  6. Levels of Integration None Annual Scramble Periodic Reconciliation Subsidiary Ledger Electronic Integration

  7. Levels of Integration: None Finance Development

  8. Levels of Integration: Annual Scramble

  9. Levels of Integration: Periodic Reconciliation • Generate a report of charitable giving from Accounting from the 1st of the month to the last day of the month – sort in chronological order. Include name, gift amount, check number, and general ledger. • Generate a report from Raiser’s Edge of all gifts received from the 1st of the month to the last day of the month – sort in chronological order. Include name, gift amount, check number, and fund description. • Cross reference the two reports to ensure that all gifts are entered into each system with the same date, for the same donor and for the same purpose (general ledger/fund).

  10. Levels of Integration: Subsidiary Ledger • Remains Manual • Raiser’s Edge is the Control using Gift Entry Validation Report and Batch Reporting • Development is First Point of Entry • Coding Aligns (Sample of MIP Integration): - RE Campaign = GL Fund - RE Fund = Program- RE Constituent Code = GL Account #- RE Gift Attribute = Department- RE Gift Attribute = Location- RE Gift Attribute = Restriction- RE Gift Attribute = Commitment? • Reconciliation is Weekly on Detail and Monthly on Summary by All Configurations

  11. Levels of Integration: Electronic Integration-Financial Edge • Setup interface on the Configuration page in The Raiser's Edge. • Add Gifts to The Raiser’s Edge - The GL post status is Not Posted- A value should be entered in the GL post date field (deposit date for cash or cash equivalents)- The batch is committed to add the gifts to the constituent records. • Post Gifts to General Ledger in Administration creating an open Journal Entry batch in The Financial Edge. • On the Journal Entry page in Financial Edge, the journal entry batch is reviewed and posted.

  12. Levels of Integration: Electronic Integration-MIP

  13. Levels of Integration: Electronic Integration-Other • Define Transactions to be Integrated • Generate RE Control Report • Export Data from RE • Prepare Date for Import • Import Data into Accounting Package • Review Transactions in Accounting • Generate Accounting Control Report • Reconcile RE and Accounting Data • Post in Both Systems if Reconciled

  14. Keys to Success Requirements Bridging the Gap Transactional Anomalies Definitions When/How to Integrate Possible Results (Be Realistic) Maintaining Development Reporting Integrity

  15. Requirements • Finance Must Embrace • Development Must Be Empathetic • Leadership Must Empower • Consensus on Level of Integration • Disparity Must Be Finite and Explainable • Codes in Systems Must Coincide • Continuous Communication – Changes Cannot Be Made in a Vacuum

  16. Bridging the Gap • Cash versus Accrual • Donor Relations versus GAAP • Subjective versus Objective

  17. Transactional Anomalies • Gifts in Kind: Entered in RE may not be entered in Accounting. • Pledges: Entered in RE but may not be tracked in Accounting unless considered receivables (proof of pledge – magnitude of pledge) • Matching Gifts: Show as pledges in RE but may not be tracked in Accounting unless treated as receivables.

  18. Definitions • ReceivablesUnconditional Promises to Pay • CommitmentsWill pay “if”… • Year-End Close • Current Year Revenue • Accruing Year-End Receivables (Fee for Service Contracts)

  19. When/How to Integrate Establish Consensus Create Testing Environments Make Resources Available Designate Project Lead(s) Determine Unique Transactions for Test Establish Controls (Reports/Reconciliations) Embrace Healthy Conversation Test, Test, Test Go Live With Goal of Continuous Improvement Communicate

  20. Possible Results • Increased Efficiency • Time Savings • Improved Data Integrity • Donor Stewardship • Accountability • Territorialism • Posturing • Debate, Discussion, Compromise

  21. Maintaining Reporting Integrity Utilize Queries for Finance Reconciliation Continue Tracking Gifts-in-Kind, Matching Gifts and Soft/Small Pledges Tailor Coding to Match Finance Use Gift Attributes to Capture Discrepancies

  22. Dan Barney Barney & Associates dan@barneyacs.com www.barneyacs.com 216.338.6072

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