Embracing technological innovation in accounting and finance in the nonprofit sector, especially as it lags behind other industries in adopting these tools. Nonprofits can reduce errors, mitigate fraud, and make more strategic decisions, ensuring their long-term sustainability. Host Julia Patrick interviews Ben Hays, manager at YPTC, during Nonprofit Power Week, on the evolving role of technology as a financial tool in the nonprofit sector. The conversation points to how data and technology are transforming financial processes, creating new efficiencies, and providing nonprofit organizations with the insights they need to thrive.
Ben begins by boasting about the value of data, noting that it is “like gold” for nonprofits. He outlines a three-step process crucial for leveraging data: gathering it, applying ETL (Extract, Transform, Load) methods to manage it, and finally delivering the information to decision-makers in an accessible format. He encourages nonprofits to embrace technology rather than fear it, underscoring how automation can streamline mundane tasks and allow the staff to focus on strategic analysis.
He also touches on the increasing role of artificial intelligence (AI) in financial processes. AI, he explains, can automate repetitive tasks like invoice processing and provide insightful financial analysis. By comparing financial trends with similar organizations, nonprofits can identify opportunities for growth and efficiency. However, he cautions against blind reliance on AI: “You need to have some lens of skepticism when you get something back from AI, and ask for its sources.”, which helps ensure the reliability and accuracy of the AI-generated insights. The lively chat also digs into the importance of data visualization, particularly for presenting financial data in a clear, concise manner to stakeholders who may not have a financial background.
How Tech Is Nonprofit’s True Financial Tool from American Nonprofit Academy on Vimeo