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Benchmarking, Outsourcing & Automating: The Benefits for Not-for-Profit Organizations

Andy Powell

May 20 2022

3 min read

Not-for-profit organizations are always evolving to meet the needs of their communities and the people they serve. This can only be accomplished when employees are successful and processes are effective. Often overlooked, a few key components that can support not-for-profit leaders in these efforts include organizational benchmarking, outsourcing and automating. But, what do these things mean?

Organizational Benchmarking

Organizational benchmarking is purposefully comparing your organization’s processes and performance metrics to that of other not-for-profits. In the benchmarking process, you typically measure dimensions that relate to quality, time and cost. You can then, once data is collected, analyze it to see where your organization stacks up against others in the industry. As a result of the comparisons, you might uncover areas that need more evaluation or certain areas you could improve. The next step is an adjustment of your processes and policies.

A few examples of benchmark indicators include:

Revenue by source
Expense by function
Number of constituents served
Employees per function

Outsourcing

For one-time projects or assignments that require a niche expert, organizations can look to outsource the resource. Outsourcing provides a specific role that fits into your large-scale goals and processes. Further, certain functions – think, marketing, IT management and customer service – can be outsourced.

Outsourcing entails reviewing the components of a process that can include:

Technology Infrastructure
Labor
Process Workflows

There’s plenty of advantages to taking certain responsibilities or processes out-of-house and bringing in an outsourced element. Oftentimes, not-for-profits are faced with a limited pool of talent, and a contracted position can fill in the gaps in a more intricate, involved temporary role. Organizations can also leverage outsourced functions to meet competitive and financial pressures or to increase efficiencies. Utilizing an outsourced role also offers access to new ideas and solutions you might not have thought of on your own.

Robotic Process Automation (RPA)

While robotic process automation (RPA) is an investment at the start, the longevity and efficiencies of automating processes and manual tasks pays dividends when continuously leveraged. RPA can give time back to your valued team by automating routine tasks and simplifying processes. Automation performs best when project steps don’t vary much and the information is received and given in a similar nature each time. This can include data entry, report automation, billing and more.

Each solution listed above offers different advantages to organizations. Whether you implement one, all or are just curious to learn more about how they can support your not-for-profit organization, our industry experts can answer any questions you have. Contact us if you have any questions, and we’ll be in touch.

This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.

About the Author

Andy Powell

Andy Powell, CPA, has extensive experience providing CFO, assurance, and management consulting services to government contractors and a wide variety of not-for-profit organizations, including associations and public charities. He has a rich background in indirect cost rate determination, the DCAA audit process and compliance under the FAR.