A new survey report entitled Non-Profit 2013 Financial Outlook, Reporting, & Systems reveals the results of a September 2012 survey of non-profit organizations and associations in the Washington, DC region. The survey, conducted by Brittenford Systems and Veris Consulting, provides non-profit executives and boards with valuable insights on the financial outlook and the top priorities and challenges facing nonprofits in 2013. The survey report has detailed summaries and graphs on these aspects including financial and business outlook, financial reporting practices, and financial systems.

1. SURVEYREPORT
Non-Profit 2013 Financial
Outlook, Reporting & Systems

2. 1 NON-PROFIT 2013 FINANCIAL OUTLOOK, REPORTING AND SYSTEMS
Non-Profit 2013 Financial Outlook,
Reporting and Systems
Executive Summary
A survey of non-profit organizations and associations in the Washington, DC region
was conducted in September of 2012, to determine an outlook for 2013, including:
• Financial and Business Outlook
• Financial Reporting Practices
• Financial Systems
The results provide non-profit executives with insights into the financial outlook,
priorities, and challenges that face non-profits in 2013.
Key findings of the non-profit survey include a majority (71%) of those surveyed
expecting growth in 2013 (vs. 2012), and only 5% contracting. The top three
financial priorities for 2013 include rethinking revenue model and income
generation strategies, improving program results and metrics, and expanding
fundraising and development.
In terms of financial reporting practices, only 22% present financial and
operational metrics to management and the Board through a dashboard. Key
findings regarding financial systems include 50% of respondents use some cloud
services and intend to use more in the future, and 62% are not considering
upgrading or replacing any business systems.
There are a variety of financial challenges that non-profits will face in 2013. The top
financial challenges for 2013 include the lack of revenue stream consistency, new
non-due revenue streams, expanding fundraising and revenue, maintaining programs
with fewer resources, and diversifying revenue and identifying new sources.
The majority of survey respondents were from membership & trade associations
(62%), and charitable non-profits (35%). All sizes of non-profits were represented:
35% with annual revenues of $1 - $4.99 million, 22% with revenues of both $5 –
9.99 million and $25 million or more, 15% with revenues of $10 – 24.99 million,
and less than 7% with revenues less than $1 million. Almost half (49%) have 11-50
employees. And finally, the majority of participants were non-profit CFOs, Execu-
tive Directors, or CEOs.
Included in this survey report are detailed summaries and charts for each survey
question, categorized by Financial Outlook, Financial Reporting, and Financial
Systems. For reference, survey respondent demographics are provided at the end of
the report. The survey was conducted by Veris Consulting and Brittenford Systems.

3. 2 NON-PROFIT 2013 FINANCIAL OUTLOOK, REPORTING AND SYSTEMS
Non-Profit 2013 Financial Outlook
QUESTION:
How would you describe your growth outlook for 2013?
The growth outlook is optimistic with 71% planning to grow in 2013. The majority
of respondents (58%) indicated that they expect a 1-9% revenue growth in 2013,
over 2012. 24% expect a 0% growth over 2012. 13% expect 10-20% revenue
growth in 2013. Only 5% predict a year of contracting revenue, or negative
growth over 2012.
1-9% growth over 2012
0% growth over 2012
10-20% growth over 2012
Negative growth over 2012
QUESTION:
Overall, what are your hiring plans for 2013?
The hiring outlook is stable with the majority maintaining FT staff and hiring 1-3 FT
staff, and a very small portion planning to decrease FT staff. 59% of those surveyed
indicated that they would maintain their full time staff and not make any additions.
On the other hand, 27% intend to hire 1-2 full time staff, and 13% expect to hire 3
or more full time staff. Only 1% plan to decrease full time staff in 2013.
Plan to maintain FT staff
Plan to hire 1-2 FT staff
Plan to hire 3+ FT staff
Plan to decrease FT staff
58.23%
59.49%
26.58%
12.66%
1 .27%
24.05%
12.66%
5.06%

4. 3 NON-PROFIT 2013 FINANCIAL OUTLOOK, REPORTING AND SYSTEMS
QUESTION:
What are your top three financial priorities for 2013?
The top 3 financial priorities for 2013 include rethinking revenue models & income
generation strategies (47%), improving program results & metrics (44%), and expanding
fundraising and development (42%). Automating fiscal controls & systems (9%) and
improving the accuracy of financial reporting (8%) are not a top priority for the
majority of respondents.
Other priorities include launching a fundraising campaign, growing non-dues
revenue, increasing investment in staff salaries and benefits, and purchasing and
implementing new AMS.
Rethink revenue model & income generation strategies
Implement new financial management system
Implement operational efficiencies
Improve program results & metrics
Automate fiscal controls & systems
Manage reserves & investments
Expand fundraising & development
Improve accuracy of financial reporting
Improve business process automation
Reduce operational costs
Other
Access financing to grow operations
Improve cash flow
46.84%
44.3%
41.77%
35.44%
31.65%
17.72%
17.72%
12.66%
8.86%
8.86%
7.6%
6.33%
5.06%

5. 4 NON-PROFIT 2013 FINANCIAL OUTLOOK, REPORTING AND SYSTEMS
QUESTION:
What financial strategies has your non-profit utilized in 2012?
In 2012, the top three financial strategies for non-profits included diversifying
revenue sources (51%), increasing the budget over 2011 (49%), and reducing
overhead expenses (44%).
Other strategies utilized by non-profits in 2012 include cultivating current
donors, increasing funding of reserve accounts, and a strategic move to use
reserves for operations.
Diversify revenue sources
Share resources with complimentary organization
Adopt new cost-saving measures
Increase budget over 2011
Leverage capital financing
Layoff staff or reduce salaries
Increase capital investments
Reduce overhead expenses
Other
Increase use of volunteers
Continue or reinstitute staff hiring
Merge with complimentary organization
Outsource
50.63%
49.37%
44.3%
34.18%
31.65%
26.58%
22.79%
16.46%
11.39%
5.06%
5.06%
3.8%
1 .27%

6. 5 NON-PROFIT 2013 FINANCIAL OUTLOOK, REPORTING AND SYSTEMS
Non-Profit Financial Reporting
QUESTION:
What reports are typically included in management & board reports?
Financial statements (statement of activities, statement of financial position, etc.)
are included in management and board reports 95% of the time. Actual vs. budget or
prior year comparisons are included 94% of the time. On the other hand, dashboard,
key operational metrics, and key financial metrics are included in management
and board reports less frequently. Dashboards are included 27% of the time, key
operational metrics 39%, and key financial metrics 43%.
Respondents also indicated other reports including: treasurer’s report, cash flow
summary, membership information, investment portfolio, 3 year projections, and
the best estimates of revenues, expenses, and cash flow for the year.
Financial Statements (Statement of Activites, Statement of Financial Position, etc.)
Dashboard
Actual vs. Budget or Prior Year Comparisons
Other
Key Financial Metrics (key financial metrics not included in Financial statements)
Key Operational Metrics
94.94%
93.67%
43.04%
39.24%
26.58%
6.33%

7. 6 NON-PROFIT 2013 FINANCIAL OUTLOOK, REPORTING AND SYSTEMS
QUESTION:
How are the management and board reports distributed?
Management and board reports are typically distributed through email and hardcopy
packets. 77% of respondents indicated they used email while 56% use hardcopy
packets. Direct access to management/financial systems are only used 5% of the time.
Other distribution methods included intranet sites, WorkZone, web posting,
electronically, SharePoint Team Sites, secure webportal, Webex then email, board
effect, and power points presented on monthly calls.
Email
Direct access to management/financial systems
Hardcopy packets
Other
Dashboard
77.22%
55.7%
12.66%
7.6%
5.06%
Monthly
Quarterly
Other
Upon request
55.7%
34.18%
7.6%
2.53%
QUESTION:
How frequently are the management and board reports distributed?
Management and board reports are most often distributed monthly (56%), with
quarterly (34%) and upon request (3%) following behind.
Other frequencies indicated included 3 times/year, different schedules based on
user needs, daily quarterly, and differences in frequencies depending on type
(management or board).

8. 7 NON-PROFIT 2013 FINANCIAL OUTLOOK, REPORTING AND SYSTEMS
Non-Profit Financial Systems
QUESTION:
Which statement best describes your current approach
to cloud computing?
Half of respondents use some cloud services and intend to use more in the future,
while 29% do not use cloud services and do not plan to in the upcoming year, and
19% do not use cloud services but are exploring some options and plan to use it in
the upcoming year. However,2%donotknowwhatcloudcomputingmeans.
We use some cloud services now and will use more in the future
We do not use cloud services, and do not plan to in the upcoming year
We do not use cloud services but are exploring some options and plan to use
We don’t know what cloud computing means
49.37%
29.11%
18.99%
2.53%

9. 8 NON-PROFIT 2013 FINANCIAL OUTLOOK, REPORTING AND SYSTEMS
QUESTION:
Within the next 12-18 months, are you considering upgrading
or replacing the following business systems?
Currently, 62% of those surveyed are not considering upgrading or replacing any
business systems. Of those planning to upgrade or replace their business systems,
18% are considering association or membership management, 16% accounting or
financial management as well as document management, 10% business process
management, and 9% grant management.
We have no plans to upgrade or replace any business systems
Association or Membership Management
Accounting or Financial Management
Business Process Management
Document Management
Grant Management
62.03%
17.72%
16.46%
15.19%
10.13%
8.86%

10. 9 NON-PROFIT 2013 FINANCIAL OUTLOOK, REPORTING AND SYSTEMS
Survey Demographics
QUESTION:
Which best describes your organization’s type?
63% of respondents indicated their organization is a 501(c)(3), 32% a 501(c)(6),
and 5% a 501(c)(4).
501 (c)(3) 501 (c)(6) 501 (c)(4)
QUESTION:
Which best describes your organization’s annual revenue?
35% of those surveyed belong to organization’s that have annual revenues of
$1-4.99 million, 22% have revenues of $5-9.99 million and also over $25 million.
Only 6% have revenues less than $1 million.
$1-4.99 million $5-9.99 million Over $25 million
Less than $1 million
$10-24.99 million
63.29%
31.65%
5.06%
35.44%
21.52%
21.52%
15.19%
6.33%

11. 10 NON-PROFIT 2013 FINANCIAL OUTLOOK, REPORTING AND SYSTEMS
QUESTION:
Which best describes your organization’s number of FT employees?
25% belong to organizations with 21-50 employees, 24% 11-20 employees, 16%
have over 100 employees, 14% 6-10 employees, 13% 51-100 employees, and 8%
have 1-5 employees.
21-50 employees
11-20 employees
Over 100 employes 51-100 employees
6-10 employees 1-5 employees
25.32%
24.05%
16.46%
13.92%
12.66%
7.6%
QUESTION:
Which best describes your role within your organization?
The majority of respondents are non-profit CFOs/Financial VPs or non-profit
Executive Directors, Presidents, or CEOs, with 42% and 39% respectively.
10% are considered non-profit COOs and 5% are non-profit Controllers.
Non-profit CFO or Financial VP
Non-profit Executive Director, President /CEO
Non-profit COO Other
Non-profit Controller
41.77%
39.24%
10.13%
5.06%
3.8%

12. 11 NON-PROFIT 2013 FINANCIAL OUTLOOK, REPORTING AND SYSTEMS
About Brittenford
Brittenford Systems is a technology services firm that implements and supports
financial and CRM software systems including Microsoft Dynamics GP, Dynamics
SL, Dynamics CRM, and the cloud-based Intacct financial management system.
Brittenford Systems also offers CIO Advisory Services, Microsoft Dynamics
training and staffing, cloud engineering services, and application development.
For more information on Brittenford Systems, please visit www.brittenford.com,
or call 703-860-6945.
About Veris
Veris Consulting specializes in outsourced financial management and survey research
for nonprofits and social enterprises. Our Outsourced Accounting and Financial
Management Practice draws upon specialized expertise to improve bottom line
results and enable nonprofits to grow revenue and control costs. We provide
objective, hands-on consultation through interim CFO services, outsourced
accounting, financial assessments, and executive search—helping nonprofits take
control of their finances and advance their missions. Our Survey Research Practice
delivers valuable insights through benchmarking, compensation and satisfaction
surveys as well industry trends and business intelligence studies. For more
information visit www.verisconsulting.com.