![]() CommunicationĬommunication between fundraising and accounting teams can be a challenge. For example, when a donor steps up to make an unexpectedly large gift for something that wasn’t in the budget or plan for the year, it can throw a curveball to the accounting team. These priorities can come into conflict when fundraising activities don’t align with the standard financial goals. Fundraising focuses on generating revenue and support for the organization, while accounting prioritizes financial reporting, compliance, and risk management. Prioritiesįundraising and accounting have different priorities. Accounting prefers clear, predictable patterns that help with building budgets. In a capital campaign, for example, donors’ commitments often span more than one year. Fundraising timelines are driven by seasonal appeals, the timing of special campaigns, and donor preferences. Timelinesįundraising and accounting inherently work on different timelines.įundraising often requires quick action to respond to opportunities or donor wishes, while accounting requires careful and deliberate planning. Here are 5 common conflicts between fundraising and accounting that nonprofits may encounter during major campaigns (or even just amid day-to-day operations): 1. We’ll explore these common pitfalls and steps you can take to avoid them from the start. Fundraising is focused on bringing in donations, while accounting is focused on managing and tracking the use of those funds.ĭuring a lengthy or high-stakes fundraising project, then, it’s no surprise that conflicts may arise that jeopardize your organization’s ability to keep moving forward in an organized way. Nonprofit Management For Executive Directors For Board Membersįundraising and accounting are two essential functions of any nonprofit organization, but they can often come into conflict with each other.
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