How Does an ERP System Benefit Nonprofit Organizations?


Even nonprofits need to run in benefit to bring in any sort of change to the world! They need to stay organized, manageable, connected, resourceful, and well-funded. Fortunately, now they have information technology to back all their moves and take accounts of databases, funds, donations, events, members and volunteers, etc. Many people still do not know that nonprofits could also benefit if they start relying on enterprise software technologies. Here are top benefits that can be realized by using an ERP for nonprofit organizations.

What are the Benefits of using an ERP for Nonprofits?

All the needs of a nonprofit organization could be taken care of quite efficiently with an ERP adopted as a ready-made solution or through an ERP software development service provider. Benefits of relying on ERP are as follows.

Swift Funds Management

A nonprofit organization receives fund from multiple sources. These funds need to be managed as per the given compliance. ERP is just a boon for this purpose. The software can help NGOs to transparently manage their funds and ensure that transactions adhere to reporting guidelines and laws of the land. The ERP will then be used to separate out several different funds for different projects and campaigns. Stakeholders and employees can access reports online at any time from their own mobile devices. The ERP system will reduce human-caused error in budgeting.

Better Grant management

NGOs receive funds via a variety of grants, which have also to be managed. Better management of money-matters help in increasing productivity and focusing more on the core work areas. With better grant management solution added to an ERP, NGOs would not need to hire dedicated grants manager or writers particularly if doing so isn’t possible because of the budget constraints. In long, a grant management solution in ERP will help an NGO receive more grants in the future. In result, the NGO will be able to contribute to more social welfare activities.

Better Fundraising Campaigns

ERP software can help a nonprofit in its fundraising campaigns. It can build and maintain connections with donors by understanding their donation behaviors. With this data in hand, there would only be need of carrying out targeted fundraising campaigns.

Membership Tracking

There are different membership models adopted by NGOs. This can be rolling membership that continues a year from the data of payment. This can also be an annual membership that starts from 1 Jan and ends on December 31, regardless of the fact when the payment is actually made. With these sorts of memberships, it’s hard for nonprofits to keep tabs on, but an ERP can take care of it quite efficiently. It can also inform members that their membership is about to end.

Donor, Volunteer, or Contact Relations

Nonprofits need volunteers, donors, and contact-relations. An ERP helps NGOs to keep this information in the same system where the information of members and fundraisings are also stored. This will ease the work of employees of NGOs. They will not have to check things between systems that, of course, affect their productivity levels.

Accurate Reporting Capabilities

ERP introduces high level reporting capabilities on funds, donors, collections, etc. By reporting, nonprofits prove their worth in the society and bring in transparency to all their activities. Generating reports manually would take from weeks to months, but with ERP, it’s just the matter of a minute or two. Even all stakeholders would be able to have the real-time reflection of each and every activity being carried out in an NGO.

Marketing, Project and Event Management

Typically, nonprofits survive on donations. With marketing, they can expand their reach and intense their fundraising campaigns. With system like ERP, employees become capable of managing projects and events aimed at raising funds. ERP can also assist in marketing campaigns based on email, social medial and contacts and save valuable time.



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