As a nonprofit, your technology should serve your mission by connecting your data and ensuring the right people have access to the right information when they need it. Implementing an Enterprise Resource Planning (ERP) system can be a powerful step toward this alignment, but selecting and implementing the right solution requires careful consideration.
By understanding your current operations, staying informed about the options, and placing your people at the center of technology, your nonprofit can implement an ERP that brings the insights and clarity needed to drive your mission forward.
How Does an ERP System Work?
An ERP system consolidates your data onto a single platform of truth, connecting key functions across your organization. This eliminates data silos and provides a clear view of how different areas of your business (finance, inventory, HR) might interact.
For example, a nonprofit can leverage ERP to align its performance with its funding sources and link program outcomes with financial data. By centralizing key information, an ERP system enables more informed and strategic decision-making, providing a level of insight that can strengthen relationships with funders and stakeholders.
Begin by Aligning Your People
Whether your focus is improving financial transparency, boosting donor retention, or enhancing program reporting, alignment with your people is essential for laying the foundation for success. Before you start, identify exactly who you are serving, both internally and externally, and determine what system information is most valuable to your stakeholders. Make an effort to understand your team’s day-to-day workflows, set strategic, achievable goals, and secure early buy-in from leadership.
Assess Your Current Operations to Build a Strong ERP Framework
Before selecting an ERP, assess your current operations by reviewing legacy systems, documenting inefficiencies, and understanding how data flows (or doesn’t flow) through your organization.
This assessment period presents an opportunity to evaluate which of your existing workflows require adaptation. Experiment with adjusting to the ERP’s capabilities, rather than trying to over-customize the software to fit outdated practices. In most cases, configuration, rather than customization, proves to be the more sustainable and cost-effective approach.
Narrow Down Your Options
Once you’ve clarified your needs and goals, you can begin searching for the right ERP software. Your vendor choice should be based on how well the platform aligns with your workflows, reporting needs, and plans for future growth.
Different nonprofit sectors might have specific requirements, for example:
- Healthcare and education nonprofits may need a system that supports robust HR tracking, clinical notetaking, compliance management, or accreditation reporting.
- Fundraising-driven organizations might benefit from ERPs that integrate well with donor CRMs, offer detailed segmentation, and connect seamlessly with fundraising platforms.
- Community-based organizations may seek features that simplify case management and support outreach efforts.
The goal is to select a system that reflects your work style and helps you improve it. Along with functional fit, consider:
- Scalability: Will the system grow with your organization as your needs evolve?
- Support & Vendor Experience: Does the provider understand the nonprofit sector and your industry, and offer strong client support?
- Cloud Accessibility: Is the system cloud-native, making it easier to manage and access remotely?
- Cost and Licensing: Are the pricing models sustainable over time, and do they include hidden costs, such as training or upgrades?
Before and After Rollout
A successful ERP implementation relies on clean, accurate data, so thorough data cleansing is essential before migration. Before rollout, eliminate duplicates, outdated information, and inconsistencies that could disrupt operations later. Test functionality early and often, so your team can address technical issues and avoid disruptions after go-live. Include User Acceptance Testing in your project plan to verify that staff and volunteers can navigate the new platform.
After going live, regularly gather user feedback to fine-tune performance and address any growing pains. This phase also creates an opportunity to streamline data through a structured Extract, Transform, and Load (ETL) process, preparing the data for reporting and analysis. With the proper setup, you can achieve more transparent financial reporting, stronger donor management, and clearer insights into your organization’s impact, all of which align with your mission.
How We Can Help
Each organization is unique, and there is no “one-size-fits-all” when it comes to the technology that will best suit it.
Our Grassi nonprofit and technology advisors can work closely with you to identify the ERP solution that best aligns with your organization’s unique needs, enabling you to advance your mission more effectively. For more information on how we can help you select and implement technology that fits your needs, contact us or reach out to a Grassi advisor today.
