In this post, we explore why internal controls shouldn’t be limited to audit season. We share practical ways nonprofits can keep safeguards active year-round, how leadership sets the tone for accountability, and how simple process checks can protect your mission from everyday risks. Running a nonprofit involves juggling many priorities. You must advance your mission, support your team, engage donors, and keep operations on track. Amid these responsibilities, one crucial area often fades into the background: the health of your internal controls. These systems and safeguards protect your organization’s finances, data, and reputation. Internal controls are not just compliance tools. They serve as your nonprofit’s year-round safety system. Think of them as the financial seatbelt that prevents small oversights from escalating into mission-threatening risks. When internal controls are only revisited during audit season, vulnerabilities can go unnoticed. This oversight can erode your organization’s credibility. By integrating internal controls into your organization’s everyday culture, you strengthen accountability. This builds trust with your board and donors, ensuring your mission remains protected throughout the year. Turn Nonprofit Internal Controls into a Living System An internal control review, sometimes called an internal control assessment, provides a proactive look at how your policies and processes perform under real-world conditions. It asks a simple question: Are our financial safeguards working the way we think they are? Tools like an internal control questionnaire (ICQ) or checklist can guide this process. They serve as structured reviews rather than one-time audit tasks. Benefits of a Well-Designed ICQ A well-designed ICQ helps your team: Confirm that policies are followed consistently. Identify new risks as technology or personnel change. Ensure financial procedures align with your mission and compliance requirements. Some organizations create their own questionnaires, while others collaborate with outside experts for an objective view. Either way, this review transforms internal controls from static documents into living management tools. Looking for a practical way to evaluate your current safeguards? Read our earlier post on What You Need to Know About Internal Control Questionnaires for Nonprofits . It outlines the steps and considerations nonprofits can use to review their financial controls with confidence. The Year-Round Internal Controls Cycle Financial safeguards that protect your mission New Risks Demand Stronger Controls Fraud prevention is only part of the story. Today’s nonprofits face new types of exposure that require stronger, more dynamic systems. Cybersecurity threats : Cloud platforms, email access, and donor systems make nonprofits attractive targets for phishing and ransomware. One compromised account can expose donor or financial data. Human error : When teams are small, one missed step—a forgotten approval or skipped reconciliation—can create ripple effects that impact board reports and funder confidence. Data loss : Storing financial files on a single device or relying on outdated backups increases vulnerability. Cloud-based accounting and shared document controls can reduce that risk. According to the Association of Certified Fraud Examiners, nonprofits lose an average of 5% of annual revenue to fraud, often due to weak or outdated internal controls. A comprehensive internal control checklist can help measure readiness for these scenarios and pinpoint where stronger guardrails are needed. Leadership is the Key to Strong Controls Sustainable internal controls depend on leadership, not just forms and policies. Building a culture of accountability requires visible commitment from the top . Make it a leadership priority : When executives and board members emphasize controls as mission-critical, everyone follows suit. Review regularly : Annual audits are not enough. Include internal control discussions in leadership meetings and policy reviews throughout the year. Empower, not burden, your staff : Simplify control processes so they’re realistic for small teams and seen as part of good stewardship, not red tape. Expand your capacity with outsourcing : For many nonprofits, separating accounting duties internally can be challenging. Outsourced accounting services provide the benefit of a full team’s expertise without adding permanent staff. Protecting Your Mission Starts with Financial Discipline Strong internal controls don’t just prevent fraud—they safeguard your organization’s reputation, data, and donor confidence. In a world of increasing complexity, they are one of the most practical ways to protect what your mission stands for. Vault’s Outsourced Accounting Services team works exclusively with nonprofits and associations. They bring hands-on experience to identify control gaps and design tailored solutions that fit your structure and budget. If you’re not ready to outsource your full accounting function, start with an internal control assessment. This proactive step confirms whether your systems are current, effective, and aligned with your organization’s goals. Protect your mission by protecting your financial foundation. Contact Vault to schedule an internal control review and gain confidence that your safeguards are as strong as your mission.

In this post, we explore how AI fits into nonprofit finance workflows; beyond the hype. We share real insights from our accounting team, practical use cases, and what AI can’t replace. Integrate Technology Across Your Organization In nonprofit finance, every hour counts. Between tight reporting deadlines, complex grant requirements, and ongoing board prep, finance leaders are constantly being asked to do more with the same resources. It’s no surprise many are wondering: “ Is there a smarter way to get it all done?” That curiosity is what’s prompting many in nonprofit finance to explore where AI might fit. While artificial intelligence isn’t new, its role in nonprofit settings is still emerging. More CFOs, controllers, and operations leaders are exploring how AI might help lighten the load, and when it’s better to tread lightly.   Here’s the bottom line: AI won’t (and shouldn’t) replace the people behind your numbers . But when used wisely, it can help your team focus on what matters: strategy, accuracy, and stewardship. Where AI in Nonprofit Finance Can Help Most nonprofits aren’t using AI to handle audits or reconciliations. But it’s beginning to prove useful in the background, automating small, time-consuming tasks that can quietly drain hours.   Finance teams are starting to test AI for: Drafting requests or response letters to regulatory agencies Review industry language and best practices for policy generation Assisting with budget forecasting using non-sensitive data to spot trends Summarizing meeting notes or internal updates Drafting internal documents using non-sensitive data Researching nonprofit financial trends Generating dummy data for training Creating onboarding checklists for new hires These tasks may seem minor, but they do add up. Saving even a few hours each week can reduce burnout, improve workflows, and give people more time to focus on the work that matters. Why More Finance Teams Are Paying Attention AI in nonprofit finance isn’t about jumping on a trend; it’s about meeting real, growing demands. In a recent Gartner survey ( 2025 Finance Executive Priorities Survey ) of over 250 CFOs, data, metrics, and analytics topped the list of finance priorities for 2025. As CFOs take on broader responsibilities across their organizations, many are shifting their focus from basic automation to more advanced, intentional uses of AI.   Gartner also highlighted a concern that resonates closely with many teams: the talent gap. Most CFOs said their teams are falling 50–75% short of where they’d like to be when it comes to digital skills.   For lean nonprofit teams, that’s a big deal. Exploring how AI can support behind-the-scenes work isn’t just about saving time; it can be a practical way to stretch capacity without needing to grow headcount. Be Smart About Data One of the most important questions to ask is: Is our data safe?   That’s a critical and responsible concern. Finance teams regularly handle sensitive donor data, payroll, and compliance information. Before trying any AI tool, ask:   Where is the data being stored, and is it secure? Is it encrypted or anonymized? Can it be used locally, or is it cloud-only? Do its terms match your organization’s privacy standards and donor expectations?   At Vault, we believe it’s not just about what a tool can do; it’s about how  it does it. The tools you use should reflect your values and protect your clients and stakeholders. A Practical Place to Start You don’t have to overhaul your systems to benefit from AI. Start small. Choose one or two time-consuming tasks that don’t involve sensitive data. Then:   Test AI on non-sensitive, time-heavy tasks Choose tools with transparent data policies Involve IT, legal, and finance early Avoid tools that are “trendy” and don’t solve a real need Establish clear AI usage guidelines for your team   This isn’t about doing everything at once: it’s about finding a few smart ways to make your team’s day more efficient, one step at a time. People First. Tech Second. AI tools can be helpful, but they are just that: tools.  They can’t replace your team’s experience, judgment, or deep understanding of your organization and subject matter.  However, when used with care, these resources can be a valuable asset.   Whether it’s drafting a report, creating a checklist, or saving an hour a week, AI in nonprofit finance has the potential to support your mission in small but valuable ways. Need a Hand Streamlining Your Financial Operations?   Vault provides outsourced accounting services built specifically for nonprofits and associations. If you’re looking to strengthen your financial foundation or add capacity to your team,   contact us   today.    Disclaimer: This blog is for informational purposes only. Vault does not promote or recommend AI tools for organizations that are not comfortable using them. Each organization should evaluate what’s right based on its operations, data standards, and values. References: Gartner. 2025 Finance Executive Priorities Survey . Summary: Survey of 250+ CFOs identifying top priorities, including data, analytics, and the shift from traditional automation to AI.   Further Reading: Bain Capital Ventures, AI and the Office of the CFO in 2025 BCG, How Finance Leaders Can Get ROI from AI McKinsey, The State of AI in 2025

Benchmarking Research in Manufacturing Trade Associations: Key Findings & Best Practices The National Association of Manufacturers ’ (NAM) Council of Manufacturing Associations (CMA)  recently conducted a comprehensive benchmarking survey focused on research activities within manufacturing trade associations. This detailed report shares the full results of the survey, covering topics such as research staffing, budgeting, funding sources, revenue impact, and other critical metrics. It also includes actionable best practices and insights from a wide range of association executives, providing valuable context on how peers are structuring and investing in their research functions. Whether you’re leading a manufacturing trade group, overseeing a research or data team, or guiding strategic planning, this report offers a clear picture of where your organization stands and where there may be opportunities to grow. Research Benchmarking Report Highlights If you have any questions regarding this report, please contact Mike Hayes at Vault Consulting, mhayes@vaultconsulting.com , or Shonzia Thompson at CMA, sthompson@nam.org .

Among professional services, gender equality is far from universal reality.    Women’s Equality Day is celebrated on August 26th to commemorate the ratification by Congress of the 19th Amendment, ensuring the right to vote for all Americans, regardless of sex. The 19th Amendment was passed by Congress in 1920, following a peaceful civil rights movement by women across the nation that began at the Seneca Falls Convention in 1848. While the right to vote granted equal political status to women and men, the fight to eradicate gender disparity in the professional and social spheres of American society continues today. Although women’s access to education, jobs, and financial freedom has improved in the past century, in the professional world, they continue to face sexual harassment, pregnancy discrimination, and unequal pay compared to male counterparts. Disparity is greater among women of color, who are confronted with two-fold discrimination based on both sex and gender. Women have not yet achieved the full rights and privileges, legal and institutional, of men in America. Women’s Equality Day should be spent by looking backwards, in celebration improving equality and in acknowledgement of the determined women that brought this progress to fruition. It should also, however, look forward to the goal of complete representation of women in every business and industry, to squelching the wage gap, and to promoting women as professional leaders. The fight for gender equality rages on. Particularly in the corporate sphere, particularly in mathematics-based professions, and particularly to achieve equal representation of women in leadership. According to the 2021 Women in the Workplace report by McKinsey, while women make up 52% of entry-level employees across industries, their representation drops at every successive managerial level to just 24% of employees at the C-suite level of companies.( source ) In the accounting and data science industries, gender disparity is even more pronounced than the average American workplace. While women now comprise more than half (62% in 2019) of the accounting and auditing workforce in America, they only represent 23% of partners in CPA firms. ( source ) In data analytics, women have not gained as much representation as in the accounting industry, due partially to pronounced gaps that emerge at the collegiate education level. Only 26% of data science and analytics jobs in America are held by women. ( source ) Implicit workplace bias also leads to a lack of hiring and prevents managers from rewarding women appropriately with promotion opportunities for their contributions to firms. It is time to recognize excellent women and to value their contributions to the accounting and analytics fields in equal measure to their male counterparts. Take a moment today, to commend and support the women in your personal and professional organizations. Consider how you might empower the women on your team to achieve their full potential impact. In accounting and research, Women’s Equality Day should be dedicated to celebrating the women that we work among and to recommitting to accomplishing fair and equal treatment and opportunities for women in our industry.

As the nonprofit workforce ages, organizations must take proactive steps to preserve institutional knowledge and prepare for leadership transitions. This on-demand webinar explores strategic succession planning and knowledge transfer methods tailored for the unique needs of mission-driven teams. In this session, expert speakers walk through how nonprofit organizations can maintain operational continuity, retain expertise, and build internal leadership capacity as the “silver tsunami” of retirements approaches. Webinar Recording: Key Takeaways:   Understand the impact of the “silver tsunami”  on nonprofit operations, leadership stability, and long-term sustainability. Learn actionable succession planning strategies  to identify future leaders and ensure smooth transitions. Explore knowledge transfer methods  using documentation, video interviews, and mentorship models to capture critical institutional memory. Get tips on developing internal talent pipelines  and using advisory roles to retain outgoing leaders’ wisdom. Gain confidence in initiating sensitive conversations  about retirement, transition planning, and organizational needs. Discover ways to honor and celebrate retiring staff members  while preparing your team for change. Who Should Watch? This webinar is ideal for: Nonprofit executive directors and CEOs HR professionals and operations leads Board members involved in governance and talent planning Anyone responsible for long-term organizational strategy and leadership continuity Don’t miss this essential nonprofit leadership webinar —packed with practical tools, real-world examples, and forward-thinking strategies to help your organization thrive through workforce transitions.

As is the case for any type of organization, growth can bring new challenges to nonprofit financial management. As nonprofits secure more diverse types of revenue, from grants, donations, and new offerings, they may find they face growing donor expectations and an even greater need to stay abreast of the trends that may impact their future funding.   Growth is not always a constant on which nonprofits can rely. Nonprofits may discover that economic headwinds suddenly hamper their access to funding. There will be routine hurdles to overcome. The ability to weather these ups and downs often comes down to a combination of good governance and knowledgeable forecasting. Both of these areas can be enhanced by delivering appropriate accounting transparency that gives your board and donors the insight they need to support your work through whatever challenges may come. Financial Literacy Leads to Good Governance When helmed by financially literate leaders and directors, nonprofits tend to be better positioned to navigate funding ebbs and flows. Your accounting staff can play a key role in ensuring that board members, organizational leaders, and department heads have access to data that keeps them informed and focused on advancing the mission. Not every board member or department head comes into their position able to read a financial statement. However, this financial literacy can benefit these and other organizational leaders. Board members charged with fiduciary responsibility over an organization should be able to look at a financial statement and tell at a glance if the nonprofit is in cash trouble or if they are on track to meet a budget. Department heads should be able to tell from financial statements how their department is performing and use this information to make course corrections as needed. This financial literacy is important, but it shouldn’t be assumed that all nonprofit stakeholders have the same level of insight into nonprofit financial management. Attracted to your cause by their passion for the mission, your board members may not be fluent in the language of balance sheets. As a result, nonprofits should consider asking their accountant, accounting service provider, or auditors to provide some guidance on how to read financial statements and how to look at variances against the budget.  With strong financial governance, nonprofits may also find they can more readily step back and evaluate programs that are not moving in the right direction. Rather than simply pulling back on programs that don’t drive revenue, boards and leaders who trust their financial positions may be more likely to adopt programs that show signs of value, even if they are not financially self-sustaining. Prepare to Meet Evolving Donor Expectations  Nonprofits’ financial leaders aren’t the only ones who have greater access to more data than ever. Your donors are also accustomed to being able to instantly retrieve the data they want. This easy access has led many financial contributors to have higher expectations for detailed, on-demand financial reporting. Organizations may find their donors are no longer satisfied with financial reporting that provides data in a vacuum. Two-line income statements will prompt questions or lead to mistrust. The same goes for a highly detailed financial statement that can hide information among the minutiae. Your donors, members, and other stakeholders want transparency in reporting. To meet this expectation, nonprofit leaders will want to have tools and processes in place to promptly account for funding use. Whether you’re tracking grant funds or donations, nonprofits are expected to be able to quickly explain the impact of funds on specific programs. Having proper accounting systems within your nonprofit financial management system will help you deliver the timely, transparent reporting contributors expect.  Watch the Financial Headwinds  Well-informed accountants aren’t just watching their own financials – they’re also watching economic signals around them.  When your industry is suffering, your nonprofit may have to spend from reserves. This can be easy for some organizations and tough for others. To prepare to weather these challenges, nonprofits should be able to leverage data and trends to predict what’s coming and prepare to strategically adjust their programming, offerings, or budget. By keeping an eye on the economy, and tuning in to what their board, members, and financial contributors are facing in other roles, your accountant can deliver stronger forecasting. Work with an Expert in Nonprofit Financial Management Adapting your accounting practices is never simple, but it’s essential for staying ahead. Whether you need extra support or a trusted partner to lead a full-scale transformation of your nonprofit’s financial management, Vault is here to guide you. Contact us today   to learn more!

Nonprofit accounting faces a range of challenges today – and many organizations are finding they can best solve these challenges by creating a plan for accounting professional development. While technology is freeing accountants to take a greater role in forecasting and strategy over conventional number crunching, it’s also opening organizations up to new risks. This shift in responsibilities and risk means that many organizations, nonprofits included, have to adapt their hiring practices to recruit for new skill sets. In many cases, organizations are adopting remote and hybrid work approaches to find the right candidate.  By prioritizing training and targeting accounting professional development, nonprofits can better position their accounting professionals for success. With the right approach, nonprofits can attract skilled accountants and help employees adapt to meet evolving needs. Professional Development Attracts Top Talent When budgets get tight, professional education is often one of the first items nonprofits cut. Before making these cuts, nonprofits must consider whether pulling back on education could have a more costly long-term impact on recruitment, retention, or the ability to keep up with accounting demands.  Opportunities for structured professional development have become a priority for employees in all roles. In fact, a 2022  McKinsey study  found that the lack of career development and opportunities for advancement were the most common reasons employees quit. Research indicates that the newest generation of workers in particular value training. Adobe’s Future Workforce study  found Gen Z’s top priorities are the ability to perform meaningful work from an employer that provides training in job-related hard skills. Nonprofits are particularly well suited to delivering this balance of purposeful employment and on-the-job training.  This training isn’t just limited to those roles working in the field. Your accountant is also looking for opportunities to expand their skills and expertise. This desire for training can give nonprofits an opportunity to retain these essential employees and strengthen the skills they need in-house. Training is Taking a Tech Focus Many nonprofits offer paid coursework or certificates as part of their non-wage compensation package. However, organizations should also consider thinking bigger about the types of accounting professional development they offer. For example, accountants may benefit from technology training that allows them to support organizations that increasingly rely on digital solutions. With the right training, accountants can better leverage software to enhance their efficiency or sharpen their ability to analyze the data available to them. This training not only makes these employees feel vested but can provide them with skill sets that add tremendous value to your organization.  While technology-based training will be increasingly important, it’s not the only area from which your accounting staff may benefit from training. Key players among your accounting staff may benefit from leadership development that prepares them to grow in their careers while advancing your organization. This training can include the development of the soft skills needed for effective communication and collaboration. Training to Support a Changing Workforce As a result of the accountant shortage, many organizations are making changes in their hiring practices. Nonprofits may find that their leaders need training on how to manage a changing workforce. Organizations that adopt remote and hybrid work approaches in order to pull from a broader pool of accountant candidates will need new skill sets to remotely manage these professionals. To keep these remote and hybrid workers engaged, nonprofit managers may find they need to become more intentional in how they check in and communicate with these employees. That can mean scheduling regular meetings, reviews, and even social interactions with employees to help them feel like a part of the team.  Nonprofits recruiting entry-level applicants may find their teams benefit from training on how to support members of Gen Z. Small changes, such as providing more frequent performance reviews or more personalized training, can help engage the youngest members of the modern workforce.  Managers may also benefit from training on how to help multiple generations work effectively together. This training can help nonprofits adopt communication strategies that foster engagement across their entire workforce and prepare their accounting staff to excel. Get Help with Your Accounting Professional Development The right approach to accounting professional development has an impact on your organization well beyond recruitment and retention. Regular professional development can give your accounting team the expertise needed to keep up with evolving requirements and best practices, and weather future challenges. If your nonprofit is still building out its professional development plan, or your accounting function, Vault Consulting can help. Our team brings the expertise and tailored support to strengthen your financial operations and position your organization for sustainable growth. C ontact us   to learn how we can support your nonprofit’s accounting needs.

Employers have been hearing about the “silver tsunami” for decades, a term coined to describe the increasing number of adults reaching retirement age. Those employers that haven’t yet been impacted by a retiring workforce won’t be insulated for much longer. Between 2024 and 2030, approximately 30 million Americans will turn age 65. This cohort represents the youngest, largest, and last group of Baby Boomers to reach retirement age.  As many employers have already found, the large numbers of this retiring workforce can lead to a tremendous loss in knowledge for organizations that aren’t prepared. Associations in particular face the potential for a deep loss of knowledge and of the vast network of connections that form the foundation of any strong association.  Yet nonprofits may be tempted to put off preparations for managing the challenges that come with their professionals’ retirement. Finding the right candidate who can bring both leadership and a wealth of industry contacts can be a daunting challenge. In addition, this process can be costly, ranging from the cost of knowledge documentation strategies to the expense of headhunters.   However, it’s important for nonprofits to start having conversations around and making plans for retirement today. Proactive succession planning and knowledge transfer strategies will be essential for nonprofits to maintain their expertise and effectiveness as Baby Boomers retire.   4 Strategies for Nonprofit Succession Planning While the succession planning process can seem daunting, there are clear places to begin. Below are four strategies that can help nonprofits begin preparing for a change. 1. Start documenting and preserving institutional knowledge. The number one thing for nonprofits to begin to do today is begin documenting institutional knowledge using multiple media strategies. Video, in particular, can be useful for training and guiding the implementation of new systems. When paired with a written format, nonprofits can better deliver information for all types of learners.  As you consider various strategies for preserving knowledge, it will be important to consider differences in learning for younger generations moving into senior roles.  2. Reexamine your business continuity planning. A business continuity plan outlines the steps an organization should follow in the event of a business disruption. In essence, the biggest difference between these plans is that succession is planned, whereas a business continuity plan addresses unexpected risks. As a result, nonprofits may find that an organization-wide continuity plan can help fill some of the gaps that a formal succession plan would address. Developing this plan can spur conversations at the executive level about cross-training and other strategies for ensuring organizational continuity and future growth.    3. Prioritize internal staff development. The best-case scenario for succession is to have an internal team member step into a new role. These team members already have much of the knowledge regarding nonprofit’s goals and needs. To help prepare these team members, nonprofits should consider investments in leadership training and related professional development to equip employees for more management responsibilities.   4. Consider advisory roles. Transitions don’t have to be abrupt. For example, nonprofit leaders can continue to deliver valuable insight through advisory roles or through service on the board of directors. In this way, incoming leaders can build up their connections and industry knowledge while still having access to a powerful resource. These can be part-time roles that enable team members to transition gradually and nonprofits to balance investment in staff development. Of course, none of these strategies can be implemented if your nonprofit’s team members aren’t willing to discuss the possibility of a transition.  Beginning Conversations Around Succession   Conversations about change can be difficult for everyone involved. Yet it is essential to have these conversations early on to ensure a smooth transition for everyone involved. That said, it may not be appropriate to ask directly about retirement. Instead, consider beginning this dialogue by talking about succession planning and redundancy across roles. This opens up the broad conversation about documenting processes and connections and creates a space where professionals may feel comfortable bringing up the possibility of retirement.   Conversations about retiree benefits can provide a similar segue. HR teams may consider hosting sessions on Medicare or other retirement benefits to encourage staff to begin thinking about what retirement might look like for them.   Having these conversations early is important to ensure that staff and the nonprofit at large are appropriately prepared for change. However, nonprofits should also consider honoring retiring staff with a celebration that provides clear finality and a positive sendoff.   It’s normal for retiring professionals facing a new chapter to have some trepidation about what comes next. As we move closer to retirement, it’s tempting to think that any replacement will not be able to provide the level of contacts or service, or expertise we did. And that may well be true. Instead, the next professional to fill this role will bring their own strengths to the role. Early and frequent discussions about knowledge transfer can help make that clear, but so too can a celebration of a leader’s legacy that honors their singular contributions.  These conversations can be challenging to start, but they are important to prepare nonprofits for the future. Fortunately, nonprofits aren’t alone when it comes to facing these tough conversations. Vault Consulting can advise nonprofits on strategies for ensuring a seamless transition into their next chapter. To learn more about our HR services , contact us to connect with one of our experts.

Advocacy is an essential benefit that associations can provide for their members, yet the complex policy environment can make it challenging for associations to have their message heard by decision-makers. With so many voices vying for attention, it’s essential that associations bring a strategy to their advocacy efforts that allows them to be heard above the noise. For many associations, research provides this advocacy edge. By bringing objective data into the discussion, associations can back claims with proof points, significantly enhancing the effectiveness and credibility of their advocacy efforts. With a clear strategy for data collection and analysis, associations can effectively leverage research among various stakeholder groups to influence policy to align with their mission. Research Can Build a Case for Advocacy To build a strong case for capping the price of insulin, a prominent health advocacy organization connected with a third-party consultant to secure input from insulin users. The survey was distributed using a strategy that ensured results would mirror the general population and represent nationwide insulin users. Among other things, the survey asked respondents to share whether they had ever had to make a choice between paying for insulin over other necessities. With this data, the organization was able to quantify the hardship rising drug prices placed on insulin users. It provided the proof needed to show lawmakers that the rising costs of insulin were causing users to forgo purchasing this life-saving medication. With research, the organization's leaders proved able to effectively advocate for the changes that would ultimately drive state and federal legislation to cap insulin out-of-pocket payments for vulnerable populations. Quick Insight Can Lead to Lasting Impact Research doesn’t necessarily have to be extensive to drive action. In fact, brevity can help increase your response rate  and rapidly turn data into action. Speed was an essential element of research for our client when it learned that Congress wanted companies in their industry to stop doing business with certain foreign contract partners. The organization knew it needed to speak up for its members, but had less than a month to get the data needed to protect their interests. For fast results, they contracted with a third-party consultant to craft approximately a dozen questions to get to the heart of members' concerns. The data collected from members provided insight into the challenges the industry faced in replacing their manufacturing sources and the potential impact this would have on consumers. The member survey found that 79% of survey respondents held at least one contract or product with manufacturers from the country in question. Survey respondents shared that they would need up to eight years to switch manufacturing partners in order to minimize the impact on U.S. consumers. This combination of research and advocacy helped shape the organization's testimony before the House of Representatives Small Business Committee, and the recommendations adopted in subsequent legislation. It also provides proof that surveys don't need to be exhaustive in order to glean valuable insight. Research Can Prioritize Strategic Action In shaping the research needed to advance advocacy, associations should begin with their end goal in mind. This goal will shape questions asked to uncover the information that will drive action. Yet when the end goal is particularly large, an association may need to prioritize a range of actions. Member research  can help associations better understand their members’ priorities, concerns, and willingness to take action. This insight can prioritize action and help tailor future advocacy efforts to deliver the maximum value to members. For example, when two health-focused organizations partnered to tackle childhood obesity, they needed to first identify the strategies most likely to drive action among their target constituents. With insight from the general population, the organizations could then take specific strategies to decision-makers with evidence that the general population would support action. Adopt Research and Advocacy Best Practices Research and member insights are powerful tools for strengthening advocacy efforts. When leveraged appropriately, the research your organization conducts to members’ benefit  can also be used to support speaking points, adapted for use in trade or consumer media, and otherwise used to magnify your message. However, in shaping this research, associations must carefully design surveys to ensure they reliably represent the target population and reflect constituents’ concerns. A consultant can help maximize the chance of securing statistically significant and appropriately useful data from a representative group. If you’re ready to take action on the issues that matter to your members, Vault can help secure the data you need to build your case. The first step to achieving your advocacy goals is to contact us  today.

Grant and donor funding is the lifeblood of many nonprofit organizations. Yet too many nonprofits are lacking the strong financial management foundation that gives donors confidence that funds will be used effectively and in keeping with all program requirements.   Professional financial management isn't just about keeping books. It can be a strategic asset that directly enables fundraising success. Professional financial management establishes the foundation of accounting expertise, proven systems, and credibility needed for nonprofits to secure and maintain funding relationships. With the right approach, this “cost center” can play a central role in supporting future fundraising.   The Complexity of Donor Requirements  With more competition  than ever for limited donor funding, nonprofits must be able to demonstrate their ability to manage complex financial requirements even with limited resources. Donors want to see a history and pattern of solid financial management that gives them confidence in a nonprofit's ability to meet strict reporting requirements.   And those requirements can get incredibly strict as donors work to ensure their money will go towards the critical deliverables of the projects they support. Some donors may want reporting that provides the total number of hours worked on a project while others may request to see timesheets for funded projects. Many donors have stringent restrictions on the amount of overhead that can be charged to contracts. It’s no longer uncommon to see a donor limit overhead on a contract to no more than 20%.   Tracking and reporting these various expenses demands keen attention to detail and the resources to manage a number of moving pieces. But managing these pieces well can deliver a powerful return. For one organization, providing detailed, reliable monthly reports for an exacting donor – a donor that set limits on benefits and overhead rates, as well as strict budget parameters – gave the donor confidence that the organization could manage a second award. Following an initial award of $500,000, the organization was gifted an additional $2 million.  Implement Controls, Policies, and Procedures  Strengthening your organization’s financial management may seem daunting, but it can ultimately serve as an effective way to reduce costs and gain new revenue streams for your nonprofit . That’s because solid financial management strategies can reduce organizational risk and increase efficiency.   The first step of good financial management is to implement strong internal controls . Even with limited resources, organizations can put in place internal controls that ensure proper use of funds, prevent fraud, and reduce the risk of unintentional errors. An   internal controls questionnaire  can help nonprofits better evaluate opportunities to strengthen their controls.   The next step is to create policies and procedures – and a system for ensuring that they are followed. Many awards come with layers of parameters that organizations may have to follow. It’s important to have a plan in place for how your organization will ensure compliance. But it’s also important to ensure that everyone responsible for the use, management, and tracking of funds understands these policies. It’s this last step that too often gets overlooked.  For one organization, lack of processes meant that key compliance information was never delivered to the grant manager. As a result, the grant manager was not providing the required information to the funder. The cost of that oversight amounted to $6 million.   Invest in Solutions for Reliable Tracking  No one knows better than a nonprofit leader that time is money. Automating processes  can help you recoup both. When evaluating your existing financial management processes, consider opportunities to shift from manual processes to automated systems. A number of solutions may already exist in your accounting software that reduces the need for paper documentation and increases your ability to move data across systems.   When it comes to tracking donor funding, however, it’s important to implement a system that tracks that money separately from your nonprofit’s other revenue streams. This is important for any award, but particularly for awards that bring an organization’s total federal funding for the year to more than $1 million, as this limit triggers the Office of Management and Budget (OMB)  threshold for a single audit  (formerly known as an A-133 audit). This audit puts an organization’s federal awards under a magnifying glass. If your organization’s accounting software does not allow you to track funds separately from the rest of your spending, consider working with a professional financial management firm.   Play to Your Administrative Strengths   It’s also important to recognize that the donor pool contributing to your organization can impact how you should structure your internal controls, processes, procedures, and reporting structure. For example, organizations with a few large donors may face more stringent reporting requirements, while organizations with many small donors may need to track a greater multitude of varying reporting requirements. Each comes with their own administrative burden that may require different strengths from your team.  When nonprofit organizations outsource financial management to a professional firm like Vault, they gain the strength of a dynamic team. Vault can help organizations with limited resources strengthen their internal controls and financial knowledge and more effectively compete for funding. To learn more about professional financial management and how to create new revenue streams for nonprofits , contact Vault Consulting .

Research is often positioned as a central part of a trade association’s   value proposition . After all, associations are in a unique position to collect industry intelligence on behalf of their members and provide unbiased output that can help members grow their businesses or plan their next moves. However, many of these same associations struggle to transform the information they collect into a form that provides strategic value for their members.  Why the disconnect? Often, it’s due to a lack of a clear framework for turning data into action. Successful associations don't just collect data – they follow a clear roadmap for turning research insights into strategic action plans that drive measurable member success and industry advancement.  Creating a Framework for Association Research    As an objective third party, associations are in an excellent position to capture data from their members. Members often prove more willing to share sensitive company data with associations as an independent third party that can compile a trove of industry data into reporting that helps inform decision-making.   Yet, associations that start by collecting as much data as possible, with the hope that the value will emerge over time, can quickly find themselves overwhelmed and lacking member support. To ensure your association is collecting data with a purpose, it’s important to put a framework in place to shape your research strategy and focus on data of most interest to your members. With this framework in place, associations can strategically expand their data collection and reporting over time.   With this strategic planning for associations’  research, members will gain clear value by considering the following steps:  1. Prioritize Member-driven Research Effective research is usually driven by members and rarely by association leaders and third-party researchers. Your members know their industry best, so they should be involved in determining what data points will be most useful to secure.   2. Connect Research to Your Strategic Plan At a high level, the most effective association research is driven by – and integral to – the association’s strategic plan and member needs. The association’s mission and values can help guide the types of data that you deliver to inform members’ decision-making. Especially when starting a new research initiative, it is key to have a multi-year plan that outlines how the research can grow, how members can use it to help run their businesses, and how it can promote the overall industry.     3. Put Member Advocates to Work As members speak up about the data that would be of most use to them, encourage those same individuals to get involved in shaping the research direction. A group of member advocates can help launch research programs and maintain value through periodic committee reviews.  4. Start with the End in Mind  Research can (and typically should) be leveraged in a number of ways. It can provide an industry pulse , help demonstrate data trends over time, support benchmarking, drive advocacy , and expand awareness of key issues. Identifying the many ways in which data could ultimately be utilized can shape the amount and level of data collected.  5. Create an Environment that Encourages Member Participation The success of your research depends on members’ participation. Having antitrust guidelines and other legal guardrails in place can encourage engagement by providing members with assurance that their data is safe. Inviting a third party to manage sensitive data is an added step that can give companies confidence that participating in the program will not risk the confidentiality of their data.   6. Keep Reviewing Research Needs As members’ needs change, research programs may need to change as well. For example, programs may need to expand to gather different types of data as new product types hit the industry. In addition, programs launched to provide data on the North American market may expand over time as member companies reach global audiences. To ensure research does not become stale over time, it’s important to establish a timeline for periodic reviews. In order to see this timeline is met, it is important to establish a group, whether a research committee or board-level group, that holds responsibility for this evaluation.  Look Forward to Shaping Strategic Planning    While it is important not to get lost in granular data, strategic planning for associations should also include considerations for curating research data that members may need in the future. Historical data that provides insight into how an industry responded to unusual market conditions in the past can inform decision-making. But getting that value may mean structuring research today with the faith that it may prove fruitful years in the future.    For example, when Vault Consulting began working with Battery Council International (BCI) to collect data on automotive and industrial battery shipments, that data centered on lead batteries, as that solution comprised the majority of the market. However, the association   added lithium-ion battery categories to its shipment reports in 2023 in anticipation of market shifts. While few members had data available in this category, it was already clear that this product marked a new direction for this industry. Including opportunities to provide new product types early would help establish historical data that could, in time, prove valuable in identifying trends. Moreover, collecting this data provided an opportunity to engage lithium battery manufacturers and help expand the value of the association to a new audience.   In this case, association leadership recognized that this information would not likely be ready to publish immediately. However, BCI understood that building a strategic framework to collect new data as this industry sector grew would provide insights that appeal to current and prospective members and help establish their association as a proactive thought leader in an emerging area.   Having faith that granular data will provide value in the future requires solid insight into one’s industry and a forward-thinking mindset. It also benefits from having a partner who can help structure research in a way that maximizes value today and tomorrow. This is an area where Vault Consulting excels. To learn more about how we’re helping associations leverage their research to better serve their members, contact us today to get started!

Financial and accounting systems are central to the success of associations, but they can also present a variety of challenges. If your association is considering accounting automation, you face several choices. In this post, we’ll talk about some of the major trends we’re seeing at our association clients, and ways these trends could inform your decision-making.   1. Reducing or Eliminating the Need for Paper Documentation One of the most significant trends in accounting automation is reducing the need to physically handle documents and manually enter data. The accounts payable function — and specifically, online bill payment — is a good example of accounting automation in action. Although your bank can provide a partial solution to online bill payment, often the related documentation doesn’t automatically transfer to your own accounting software. More effective solutions tend to create their own lifecycle for bill management and payment. These solutions may feature automated approval processes and audit trails as they generate payments, and often sync directly with your accounting software. Staff in operating units can gain greater visibility into their own budgets, and drill down into specific payments whenever they need to.   These solutions can also deliver significant benefits before, during, and following audits. Traditionally, accounting professionals needed to physically track down documents in disparate locations, provide them to the audit team, and refile them afterward. Inevitably, some documents would go missing, leading to frustration and errors. However, when accounting automation solutions are implemented, it’s potentially much easier to locate and share documents needed for audits — and eliminate the need to refile them. Another potential benefit is that you no longer need to dedicate space for document storage, whether onsite or elsewhere.   2. Maintaining Systems that Talk to Each Other  A related trend in accounting automation is ensuring that different systems within the organization can talk with each other. With team members working remotely and collaborating virtually, increasing the risks of double-entry and other types of human error.   Association management may assume that effective integration requires little more than choosing a good accounting software platform and then pushing a button. In reality, it’s a complicated, time- and resource-consuming process, with many moving parts. That said, the benefits can also be significant. For example, many of our clients have reported that with tighter integration between their accounting software and other systems, their internal customers feel an increased sense of ownership over their financials, with greater control and faster answers to their questions.  3. Selecting Systems that Can Grow with Your Organization  For organizations whose accounting systems are older or less flexible, updating their systems and reporting tools to reflect such changes can be very difficult.  If your organization faces such decisions, it’s important to know that some software manufacturers effectively “lockdown” their systems so that users cannot make the kinds of fundamental changes just mentioned, while others are more flexible, and even encourage third-party software providers to introduce products to make their systems more functional.   4. Moving to Cloud-based and SaaS Systems  Another related decision associations face is whether to move to cloud-based and/or Software as a Service (SaaS) systems. While we’ve seen this trend for a number of years, it is becoming increasingly acute, especially in the area of data security. In the past, many associations could afford to have systems that lagged behind their software providers’ most recent build. But with the increasing risks of hacking and ransomware attacks, keeping one’s system current is more important than ever. Cloud-based and SaaS systems address this need by ensuring that an association’s security profile is always as up-to-date as possible.   It’s also helpful to understand that there is a continuum of SaaS models. On the simpler end, there are products such as QuickBooks Online; on the more robust and flexible end, there are systems such as Sage Intacct that may be better suited to the task.  5. Using Training to Ensure that Your Systems are Being Utilized to Their Potential  In our experience, many associations have barely scratched the surface in terms of what their people can do with their accounting technology — and the solution can often be found in training. Many of the best accounting software providers have scaled back or eliminated their training offerings. Fortunately, a robust ecosystem of third-party training providers can fill in this critical gap.    When selecting a provider with expertise in your particular accounting system, one helpful approach can be to join a relevant user group, which can be readily found through ASAE, or through various CPA organizations. We’ve also seen associations save money by taking part in group training; although the training is not customized, it does come at reduced costs that can make it a more sustainable solution.   Good Luck on Your Journey  Not every association will place the same emphasis on these various trends in accounting automation, but keeping them in mind as you review your options can be a strategic plus. In essence, using the limitations and challenges presented by the pandemic to guide the development of your accounting system can be an effective way of making lemonade out of lemons.   Best of luck as you plan your organization’s future technology profile! If we can assist in any way, please don’t hesitate to reach out. Contact us  at Vault Consulting anytime, and we’d be happy to help.