While 2021 didn’t deliver as much of a reprieve from the coronavirus pandemic as we had hoped, the year was a testament to strength and perseverance. Nonprofits everywhere further adjusted how they raised funds, held meetings, attended conventions, and connected with their members. The importance of things like long-term planning, emergency funds, and financial dashboards came to the forefront. Not to mention we all became a bit more familiar with Zoom.
Hopefully this year will allow for more peace, health, success, and in-person gatherings.
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Here are a few financial resolutions for you and your nonprofit to keep in mind in 2022.
Diversify Your Funding Sources
When it comes to funding, the last two years have taught us to expect the unexpected. Your nonprofit should take advantage of multiple funding options rather than be reliant on just one or two main streams.
Consider new ideas for funding sources, such as:
- applying for government contracts and grants
- creating an e-commerce store
- hosting virtual parties, and
- inquiring about corporate sponsors.
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Monitor Your Internal Control Systems
Your internal control system (ICS) should be well designed and functioning to help your organization mitigate shortcomings and thrive in the new year. One essential aspect of a successful internal control system is monitoring. Monitoring ensures that everything is operating smoothly when it comes to your internal controls system.
In 2022, your nonprofit should make this a priority. Department heads and managers in your organization should be regularly providing feedback and communicating in a timely manner to the board and others who can take corrective action. A regularly monitored ICS will increase the effectiveness of your nonprofit and also reduce costs when it comes to things like audits and financial reporting.
Utilize RFPs to Help Your Organization Succeed
The last two years have taught us that asking for help should be looked at as a positive thing—not a sign of weakness. In 2022, if your organization is struggling with providing quality services or achieving your goals, you should consider a request for proposal (RFP).
RFPs help organizations outsource things like projects or services they don’t have time for or the resources to do in-house.
Creating a quality RFP using best practices can increase your ROI and further your nonprofit’s reputation as an organization that delivers the best services possible. Don’t struggle to keep your head above water by tackling something that could be outsourced. 2022 should be the year your nonprofit focuses on its mission and its members.
[Related: Fundraising in a Soft Economy]
Leave Your Accounting to a Non-Profit Focused Firm
Jacobson Jarvis is ready to help you with all of your not-for-profit financing and accounting needs in the new year. Jacobson Jarvis provides unmatched quality of work and customer service for the entire non-profit community. Contact us today to get started.