As the demands on non-profit organizations continue to grow, outsourcing can provide several benefits for these organizations. Outsourcing can allow non-profits (NPOs) to save money, reduce administrative burdens, and access specialized skills and expertise. It can give them access to specialized knowledge and services they would not otherwise have while freeing up their resources to focus on their core mission.
In this blog, we will discuss why non-profit organizations should consider outsourcing and some potential benefits they can gain. We will also look at some of the most common outsourcing services non-profits are turning to and how to find the right service provider for their organization.
Why Should Non-Profit Organisations Consider Outsourcing?
As a Non-Profit Organisation, you must have a lot on your plate. Since you must be working for a noble cause, there must be a lot of investments by people from around the world. To handle the data efficiently, outsourcing has been considered one of the most impeccable ways to alleviate costs.
As per a report by Statista, the outsourcing business was evaluated to be roughly $92.5 billion in 2019. Furthermore, the number is predicted to increase to $410.2 billion by 2027.
Here are some reasons you need top-notch outsourcing to run your NPO at maximum profit.
1. Reduce Labour Costs
If you have been running your NPO for several years, you would know how tedious the work gets as the business grows. When the bookkeeping management rises to a point when you need to hire a bookkeeper, that’s when you should consider outsourcing your finance and accounting department.
Your NPO can forego the excruciating calculations of your expenditures and incomes by seeking outsourcing which would cost you lesser than hiring and training a full-time employee. It will also eliminate the additional cost of setting up a management and human resources department for full-time employees.
2. Flexibility to Adapt to Evolving Needs
As an NPO, your team will be skilled in a particular domain, and chances are that they will need more knowledge about finance and accounting. Thus, your organization can avoid losses if your existing staff is updated with the latest trends and technology in the finance domain. Thus, to get the best, it would help if you outsource your work at a part-time cost and not hire a permanent employee to whom you’ll have to provide full-fledged training.
This way, your organization will be flexible and adapt to the evolving needs of the finance industry without making a huge investment. Thus, you can access competent accountants, which would require more work to achieve with in-house employees.
3. Release Priceless Resources
Not only would you save bucks by outsourcing, but you’ll also get quality time by working with a professional agency to handle and streamline your bookkeeping procedures. As a non-profit organization, you’ll have to adhere to the social cause that you’re working for while keeping in mind certain tracking and reporting criteria for topics like:
- Programme service costs
- Administrative and fundraising costs
- Income from grants
All these requirements lead to a need for more resources, and they approach their daily bookkeeping duties in a disorganized manner. This inevitably results in accounting delays and inadequate record-keeping, making it challenging to support revenues and expenses.
Things to Keep in Mind While Outsourcing
- Establish clear communication protocols: Make sure you have a clear and consistent way to communicate with your outsourced team, including setting expectations for response times, preferred communication methods, etc.
- Set expectations: Ensure you have a clear understanding of what is expected from your outsourced team, including timelines, deliverables, and any other requirements.
- Have a contract: Make sure you have a clear, legally binding contract outlining the terms and conditions of the outsourcing project.
- Monitor progress: Monitor the progress of the outsourced team regularly, including any potential issues or problems that may arise.
- Quality assurance: Ensure that any deliverables or services the outsourced team provides are high quality and meet your standards.
- Feedback: Provide regular feedback to the outsourced team and ensure their performance is up to par.
- Security: Ensure that any data or information shared with the outsourced team is secure and that measures are in place to protect it.
To Sum Up
Non-profit organizations often need more resources and expertise to handle specific tasks. Outsourcing can help them fill these gaps. Outsourcing can also help non-profits save money by reducing costs for hiring, training, and managing staff. Finally, outsourcing can provide greater flexibility and faster turnaround times for tasks that require specialized skills or knowledge.
ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs. For more information please reach out to us at firstname.lastname@example.org or call us at 908-359-2600.