PANEL DISCUSSION2019 Accountable Impact Study: Operational Excellence for Sustainable GrowthMODERATOR: John Cashman, Senior Principal Account Executive, Blackbaud

PANELISTS:Tony Boor, Chief Financial Officer, Blackbaud

Traci Drake, Chief Philanthropy Executive, Fred Hutchinson Cancer Research Center

Paul Preziotti, Principal, Johnson Lambert LLP

What Does Accountable Impact Mean to You?

#accountableimpact

#bbcon

1,096 TOTAL SURVEY RESPONSES

2%ADVOCACY

10%ARTS AND CULTURE

5%COMMUNITY

DEVELOPMENT

30%EDUCATION

17%FAMILY AND HUMAN

SERVICES

14%HEALTHCARE,

MEDICAL RESEARCH

5%PHILANTHROPY, VOLUNTEERISM, GRANTMAKING

9%RELIGIOUS,

FAITH-BASED

8%OTHER

INDUSTRY

90%

10%

North America

Europe

LOCATION

5%ADMINISTRATIVE

4%CROSS-FUNCTIONAL

9%DATABASE

MANAGEMENT

33%DEVELOPMENT

36%FINANCE

3%GRANTS

3%MARKETING 5%

PROGRAMS2%

OTHER

FUNCTION

21%EXECUTIVE LEADERSHIP

46%FULL-TIME STAFF

1%VOLUNTEER

6%PART-TIME STAFF

25%MANAGEMENT

1%OTHER

SENIORITY

1. AccountabilityNonprofit organizations that met benchmark achievements across all eight measured accounting sub-competencies were +29% more likely to rank as “high-growth pacesetters”

2. Impact FocusNonprofit organizations with impact focus advantages within seven studied operational areas were +27% more likely to rank as “high-growth pacesetters”

Fund AccountingFinancial Reporting

Cash Management

Credit Management

Operational Costing

Program Costing

Budgeting

Spending Efficiency

Program Design

Outcomes Tracking

Funding Requests

Service Delivery

Cost Assessment

Outputs Tracking

Funder Reporting

PEOPLE

TECHNOLOGY

PROCESS

Fund AccountingFinancial Reporting

Cash Management

Credit Management

Operational Costing

Program Costing

Budgeting

Spending Efficiency

Program Design

Outcomes Tracking

Funding Requests

Service Delivery

Cost Assessment

Outputs Tracking

Funder Reporting

ACCOUNTABILITY IMPACT-FOCUS

Fund AccountingFinancial Reporting

Cash Management

Credit Management

Operational Costing

Program Costing

Budgeting

Spending Efficiency

Positive operating margin and net assets in most recent reporting period

Actual expenses within 5% of budget in most recent reporting period

Healthy credit rating and strong vendor relationships

Consider overhead ratio to be “healthy”

Can accurately attribute expenses and comply with funder requirements

Enough operating reserves to cover at least 3 months of expenses

Consistently able to meet budgeted program costs in compliance with funding requirements

Can consistently reduce wasteful spending and improve vendor terms

ACCOUNTABILITY

KEY FINDINGResults stem from resources.

274%more likely to achieve all

measured accounting benchmarks

Respondents with full enablement across all eight accounting sub-

competencies were

312%More likely to report a competitive advantage in each of those areas

Respondents with full enablement across all seven operational

categories were

KEY FINDINGOrganizations that invest in people, processes, and technology dedicated to financial management and impact-focus are more likely to experience growth.

24%more likely to report having grown

revenue and services last year

Organizations that achieved accountability benchmarks within each accounting category were

37%more likely to report having grown both revenue and services last year

Organizations with an impact focus-based advantage within each

operational category were

KEY FINDING Respondents

tended to report higher level of

confidence in their financial

management personnel than

their technology.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Financial Reporting

Budgeting

Credit Management

Program Costing

Cash Management

Fund Accounting

Operational Costing

Spending Efficiency

Technology

Process

People

All Three

KEY FINDING Respondents

tended to report higher level of

confidence in their impact-focused processes than

their technology.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Program Design

Funding Requests

Service Delivery

Outputs Tracking

Outcomes Tracking

Cost Assessment

Funder Reporting

Technology

Process

People

All Three

57%Government Grants

REPORTED REVENUE

82%Foundation Grants

66%Corporate Grants

85%Major Gifts

39%Other

90%RECEIVE GRANT

FUNDING

25%RECEIVE AND AWARD

GRANT FUNDING

30%AWARD GRANT

FUNDING

22%HAVE RECEIVED A

GRANT AWARD LARGER THAN $1M IN THE LAST 12 MONTHS

KEY FINDING Social good organizations are under-resourced to

improve spending efficiency.

21%more likely to report having

increased revenue and services last year

44%of respondents reported

adequate people, processes, and technology for ensuring

efficient spending

61%of respondents reported an ability to consistently reduce

wasteful spending

KEY FINDING Social good organizations are under-resourced

to discuss outcomes in funding requests.

54%of respondents reported adequate people, processes, and technology

to support effective inclusion of outputs and outcomes information

in their funding requests

In today’s [competitive] landscape, no organization can afford to have its finance

and development teamsworking in silos. When these two teams

work as true partners, they have the potential to significantly accelerate

the organization’s ability to achieve its mission more efficiently and effectively.

BLACKBAUD INSTITUTE

FINANCIAL MANAGEMENT TOOLKIT

Download the 2019 Accountable

Impact Study to learn more.

hi.blackbaud.com/accountable-impact