The NonProfit Times - January 1, 2008 - (Page 18)

SPECIAL REPORT APIs Continued from page 17 cial software systems in use, it is very common to see Microsoft Excel spreadsheets that mediate data between two systems. Reasons can be “we’ve always done it that way” to “so and so wanted it that way and we’ve never bothered to change.” From a business process perspective re-keying the data multiple times can introduce errors and slow down the process. However, these worksheets or other intermediary systems serve an important psychological function: the keeper of the spreadsheet is now in control of the process in terms of when things happen and what other people in the organization know.Automating the flow of information, say from an online event registration system into the main fundraising database, can be very threatening and create significant resistance. In addition to determining all of the places duplicate data reside, take a look at who uses that information for their job. 2. Whack-a-mole error correction. While one of the benefits (Above) More than 9,000 children with chronic illnesses and developmental disabilities cross the La Rabida Children's Hospital lobby each year, which has received money from the Albert Pick, Jr. Fund. This specialty hospital has been designed with the child's total well being in mind. (Left) La Rabida's outpatient visits numbered nearly 35,000 last year. The hospital provides a wide range of outpatient services from physician exams to physical, occupational and speech therapies. of integration is reduced errors by eliminating rework, mistakes will still exist. Understanding where errors come from will help in establishing procedures for ongoing detection and correction. Donors can misspell their own names, give a new or different address, or a second email. Too much automation and these errors can become duplicate records and dilute the overall accuracy of the fundraising system. Internal data sources can also produce errors. Holly Scheuble, director of product management, accounting product lines at Kintera in San Diego, Calif., provides an example on how staff will try to circumvent the system to get things done.“If you have budgets flowing through the system and a setup that won’t allow you to go over budget,they’ll go searching for another line item that will allow an expense. It’s important to set up the system to be realistic and to train staff.” 3. Judgment call. Automation doesn’t eliminate human involvement, it just changes it. Based on process flow and error opportunities, decide who needs to be judge and gatekeeper of information. Establishing reviews and approvals of information as it moves from one process to the next prevents problems from escalating and keeps things moving. Regardless of the system you end up with there will be an ongoing need for review and approval as financial data are collected, classified, and moved to the next area. According to Blackbaud’s Payne, “There is a risk to trusting the data too much, but that can be offset by having appropriate reviews. The process be18 comes to review and approve instead of entry, review, and approve.” Sage’s McClain added: “Communication is big. People are looking for different pieces of information from the same transaction -- it’s important for everyone to understand what they need -- the case manager wants information about the client, while the accounting office may be more interested in reporting against an outcome to a funder.” The keeper of the spreadsheet is now in 4. Capability and opportunity. Once you have a map of how fi- control of the process in terms of when things happen and what other people in the organization know. JANUARY 1, 2008 nancial information flows through the organization, along with the review and approval points, you can go back to the systems that store and transform the data. Look at the various source and accounting systems and identify their capacity to share data with other systems. Examine the software for import and export functions, third party synchronization, APIs, or even full-system integration. Work the problem from both ends -from the standpoint of the source system to the accounting system and again from what the accounting system can accept. In many instances there will be multiple ways to accomplish a particular task. Blackbaud’s Payne stressed, “Controls in the source system are the most important thing.” The second most important thing is the method by which those systems are transferred to the general ledger. Third in the list is a review step before doing the final posting. Just because a capability exists doesn’t mean you have to use it. A www.nptimes.com common example is donor name and address information: it usually makes more sense to manage the detail about individual donors in the fundraising database and the summary information about money deposited by date and fund in the accounting system -particularly when the list of donors can run into the thousands. For Jon Biedermann, vice president at DonorPerfect Fundraising in Horsham, Pa.,“It’s best to have detail information in one place so that you can avoid the situation we call MVOT or Multiple Versions Of the Truth.”While the fundraising system could synchronize on an individual level, Biedermann explained, it can also post a summary of gifts directly to the general ledger. Repeated data can be a requirement, as it was with the APF. Evaluate the risks and benefits of duplication and select the option that minimizes redundancy. 5. Representing yourself. Integration can be a tumultuous undertaking. Some staff won’t care; others will be worried about a loss of control or feel exposed to scrutiny before they’re ready. The technologies available today can be quite complex and will often require additional staff or outside consultants. Be cautious about allowing the technology to drive decision making -a new feature or what worked at another organization may not be appropriate for yours. Assigning an internal staff person to act as the facilitator can be crucial to making business-based decisions that value flexibility and the realities of the organization. The position can be called an internal consultant or project manager; the essential skills required include a knowledge of how the organization works and the ability to present new ideas in a non-threatening way. From a technical standpoint they don’t have to know how to do it, but they do need to be able to tell when it’s done. THE NONPROFIT TIMES http://www.nptimes.com

Table of Contents Feed for the Digital Edition of The NonProfit Times - January 1, 2008

The NonProfit Times - January 1, 2008 Expenses Continue To Put Stress On Nonprofit Budgets Insuring Donors’ Goodwill Volunteers On Firing Line Contents Who...When...Where...How...What? Red Cross Audit Comes Up Clean Exit Doors Rear And Aft Calendar A Fresh Look Special Report: Accounting APIs Opportunity Is Knocking Middle Management Barrier Memorial NPT Jobs Resource Directory

The NonProfit Times - January 1, 2008

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