Does your Not-for-Profit organization need an ERP System?

An ERP solution is the best tool for your organization while looking at managing donor records, performing audits, creating reports, managing pledges collection or establishing transparency around your operations.

The nature of a not-for-profit institution is to not chase profit and use the revenue to serve its mission. You most likely are not thinking about investing in IT as other commercial businesses, as you see that money better spent on other bits and bobs. But there is something that is true, you still need to operate like a for-profit organization to maximize how you best drive your mission.

The third sector has two different realities that might make investing in an IT solution a little bit challenging. The first one is that the expectations are changing rapidly, and organizations need to adapt to meet the demand, and the second one is that the budgets are shrinking.


children in need
ngo water

With the right Enterprise Resource Planning (ERP), nonprofit organizations can stop wasting time on tedious and time-consuming tasks. An ERP system is the best tool for your organization when looking at managing donor records, performing audits, creating reports, managing pledges collection or establishing transparency around your operations. It can also turn out to be very cost-effective, since you can run it on cloud instead of on-premise, saving you the need of hardware purchasing or having dedicated IT employees. You should always look for a scalable solution that can accommodate your requirements.


There are three key benefits of using a cloud ERP solution for a not-for-profit organization:

1. Accountability

For NGOs, it is crucial to justify budgets and expenses. It is the way of securing more funding from grantors and other stakeholders, as they are very interested in how and where the money is spent.

An enterprise resource planning software will help you improve your real-time financial reporting greatly, allowing you to meet the stakeholders’ demand for accountability. This is the right tool to centralize documents in a single archive or tracking grant expenditure.

2. Transparency

Having a single version of truth when seeing your financials will give your organization accurate data to better reporting and informed decision-making. Stringent requirements on internal and external reporting, make manual reporting no longer sufficient for this.

An ERP solution can automatically generate reports giving you accuracy in a timely manner, so you can have peace of mind that transparency will be achieved.

3. Get more for less and become more efficient

Your NGO has a very tight financial budget and due to the uniqueness of the sector, you encounter more management needs.  Your budget can also be very limited, but you can overcome these difficulties by going for a solution that is lighter on your budget or even get a grant to fund this.

Once you acquire an ERP solution, you will have more control of your money and your resources. Your new system will support your finance function by streamlining administrative processes, automating work flows and freeing staff to focus on what matter most. This will allow you to be more efficient with an impact on the bottom line, so you can invest in helping your public.


As we said at the start of this article, the lack of a profit does not mean that your non-for-profit institution can be less focused on its finances. Choosing the right ERP solution can help your organization run more efficiently, be more appealing to donors, and in general, focus more on your mission and do more good.


Want to know more about how Arribatec can help with your cloud ERP? Get in touch!

Unit4 ERP developer4U
brooke cagle g1Kr4Ozfoac unsplash

Want to have a solid Unit4 partner on your team?

More news from Arribatec ^

teamwork business woman accounting concept financial office

Accounting Software vs ERP: What’s the difference?

If you’re not familiar with the industry terms, it’s easy to think that Accounting Software and ERP are interchangeable. However, if you’re in discussion to implement a new system into your business then you need to know that they’re very different things.

Read More