Nonprofit organizations have fundamentally different financial and budget information needs than their for-profit counterparts. But many nonprofits can struggle with developing and implementing processes to gather data and gain the necessary insights for effective budgeting, reporting and projections.
People’s Action Institute is a nonprofit organization founded in 2016 with the merger of powerful national organizations. The organization focuses on creating positive change in society, supporting efforts ranging from finance reform to community reinvestment.
But in conjunction with hiring a new chief financial officer, People’s Action conducted an infrastructure review that signaled the need for several modifications within the budgeting and financial reporting process. For example, the budget process was controlled by operations instead of finance. As in many nonprofit organizations, budgeting and forecasting was largely created and maintained manually within spreadsheets, limiting tracking capabilities and creating potential challenges with accuracy and visibility.
Further, People’s Action is almost 100% grant funded, and grants were tracked from an actuals perspective, without an effective process for predicting grant revenue. In addition, the organization wanted to budget for detailed travel and meeting expenses as well as real-time actuals moving forward to have a better understanding of their financial position throughout the year.
Warren Corprew, People’s Action’s incoming CFO, quickly recognized the need to revamp the existing financial reporting, budgeting and forecasting structure. “I knew there were some systemic changes that needed to be made,” he says.
The finance function evolves
People’s Action is a complex, multi-entity organization, with a 501(c)(3) organization, a 501(c)(4) organization and a political action committee. Corprew worked with RSM US LLP on a successful Workday Adaptive Planning implementation at a previous organization and knew that the enterprise performance management solution would be a good fit for People’s Action’s reporting, budgeting and forecasting needs.
From the start, RSM focused on an implementation that would serve the nonprofit’s specific needs. With Workday Adaptive Planning, the RSM team established budgeting and forecasting processes with the required integration to move People’s Action’s costs between entities and view consolidated financials and other necessary data. Managers and designated budget managers can now own and input data and report on it themselves. People closest to the work can now confidently manage and share key data.