RSMUS.comNonprofit organizations put the needs of others above their own, working towards a mission of betterment, be it their communities, the planet, or whichever significant goal they’ve set upon themselves. While these organizations focus on the needs of others, it is vital that they aren’t held back by their own operational needs. There are 32 different types of nonprofit organizations, each coming with their own requirements regarding items such as financial reporting, automation, or grant management. To build on that, no two organizations are identical—they have personalized needs. Finding the right software to meet all those needs and support them is crucial for succeeding in their mission.
Luckily, Microsoft Dynamics 365 offers two great ERP (Enterprise Resource Planning) solutions to achieve this: Business Central and Finance & Supply Chain. Built on the foundations of decades of previous iterations, these two software have been finely tuned to handle the needs of any nonprofit. Some common problems that this industry is facing include a heavy reliance on manual processes, limited government funding, attracting/retaining talent, strict financial reporting, and budgeting. These problems are all interconnected. The reliance on manual processes makes financial reporting take longer, which in turn leads to burnout of talent from managing these stressful manual processes. Taking that one step further, with limited government funding, budgets tend to be very tight. Resources are being wasted on the lengthy time that it takes to complete these manual processes when staff could be spending their time more effectively elsewhere. Microsoft’s two Dynamics solutions look to lift the burdens of nonprofits, ensuring accurate and accessible real-time data. This relieves stress and gives valuable time back for focusing on making an impact. Let your financial software work for you, so you can work for others.
Business Central is a fantastic fit for small to mid-sized organizations, combining intuitive simplicity with powerful functionality. Its user-friendly interface makes onboarding and training team members straightforward, especially for organizations looking to transition from previous Microsoft solutions like Dynamics GP, SL, and NAV (Great Plains, Solomon, and Navision). Data is securely stored on the cloud, making it accessible for remote collaboration, and the system is capable of processing thousands of records daily—more than enough capacity for most nonprofits. Another valuable element is the quick implementation time, which ensures minimal disruption to operations and keeps organizations focus where it needs to be. Nonprofits, more than anyone, must be cost-conscious; they have an obligation to allocate resources efficiently. Business Central is a cost-effective solution that can handle all your basic processes, and with the help of extensions, can be scaled as new needs arise in the future.
Microsoft understands that not all organizations fit into the Business Central framework, which is where Finance and Supply Chain steps in to fill those gaps. Designed with larger organizations in mind, F&SC addresses more complex needs, such as managing multiple legal entities or transacting across countries. While BC can handle most basic processes, it often relies on extensions for more complicated scenarios; F&SC does not have that limitation. Out of the box, F&SC offers a vast array of reporting and analytics capabilities, including features specifically for grant management—a major necessity for many nonprofits. Advanced warehousing features also reduce the need for separate software, centralizing essential information. Overall, F&SC provides significant flexibility with customizations and can accommodate even the most complex organizational needs.
Choosing the right software solution can feel overwhelming, but breaking it down can help. Start by looking at your current processes and identifying what features are truly necessary for your organization. It’s important to consider how your data is stored—whether you’re fully in the cloud or need a combination of cloud and on-premises solutions. Only F&SC can connect to on-premises databases, which might be crucial for some organizations. If you’re currently using Dynamics GP, SL, or NAV, then Business Central (BC) is a natural choice, while organizations using Microsoft Dynamics AX should consider F&SC instead. Microsoft understands the financial position that most nonprofits are in and provides discounted pricing options. While Business Central (BC) is often the more budget-friendly option, F&SC’s advanced features could save you money in the long run by eliminating the need for extra software. Don’t forget about the implementation timeline—BC usually takes 3 to 9 months, while F&SC can extend from 6 to 18 months, with a bit more training involved. Weighing these points carefully can guide you to a decision that feels right for your organization.
As trusted Microsoft Partners, RSM is here to advise you. If you’re interested in learning more about which of these solutions is the right fit your organization, please reach out to Directors Patrick.OConnor@rsmus.com and Jeff.Stevens@rsmus.com
