With annual accounts in the public domain, conversations and word can quickly gain momentum expressing opinions on organisations’ financials. As a result, your charity may be in a position which is vulnerable to scrutiny, and with charities being heavily reliant on donations to continue their mission, it’s crucial to be prepared at all times.
Social media has changed the landscape for charities and subsequently means the ability for information online to quickly influence an existing or prospective donors’ decision to donate is profound. Unfortunately, this can rapidly become detrimental to organisations striving to help those causes in need where it can prove difficult to set the record straight to your audience.
It’s recently been reported that only 50% of the profits from the sale of red noses are donated to Comic Relief – this has gained momentum over the past two weeks and has resulted in people “boycotting” the movement by painting their nose red instead. This is a prime example of how information online can rapidly snowball in the absence of information to support and explain the reasoning behind the reported headline.
Thankfully, there are ways around this through the use of technology. Similarly, to SMEs and even larger corporate organisations, charities must report on their income and expenditure through accurate tracking and reporting of data. This is often completed through software, such as a financial management system, to ensure data accuracy is high and tracking is efficient. By presenting this data, you enable people to make their own decisions on the accurate overview of your charity, meaning distortion is avoided.
With that said, online forums and social media can be extremely beneficial to charities if used in the right way. If you have a plan in place to deal with new levels of reporting and ensure you have data transparency, these platforms can be used to effectively spread the word about insightful and powerful changes your charity is making. Not only is the reach more influential than ever, but the interaction these channels bring you with your donors creates an advantageous relationship for all parties, stimulating interest, growth and success.
Through PS Financials’ advanced financial management software, designed with charities in mind, you can record data and pull in-depth reports accurately and in real-time, ensuring you always have the most up-to-date figures available at your fingertips. Its functionality powers you with the ability to show accurate evidence of your charity’s success and demonstrate how truly valuable your donors are to you.