The survey report provides non-profit executives and boards with valuable insights on the financial outlook and the top priorities and challenges facing nonprofits in 2013. Also, the report has detailed summaries and graphs on these aspects including financial and business outlook, financial reporting practices, and financial systems.

1. Non-Profit 2013
Financial Outlook,
Reporting & Systems
Survey Report | December 2012

2. 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-dues 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, Executive 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.
1 Non- Profit 2013 Financial Outlook, Reporting and Systems

3. 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.
58.23%
24.05%
12.66%
5.06%
1-9% growth over 2012 10-20% growth over 2012
0% 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.
59.49%
26.58%
12.66%
1 .27%
Plan to maintain FT staff Plan to hire 3+ FT staff
Plan to hire 1-2 FT staff Plan to decrease FT staff
2 Non- Profit 2013 Financial Outlook, Reporting and Systems

4. QUESTION:
What are your top three financial priorities for 2013?
The top 3 financial priorities for 2013 include rethinking revenue models and income
generation strategies (47%), improving program results and metrics (44%), and
expanding fundraising and development (42%). Automating fiscal controls and
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.
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%
Rethink revenue model & income generation strategies Improve business process automation
Improve program results & metrics Improve cash flow
Expand fundraising & development Implement new financial management system
Reduce operational costs Automate fiscal controls & systems
Implement operational efficiencies Improve accuracy of financial reporting
Manage reserves & investments Other
Access financing to grow operations
3 Non- Profit 2013 Financial Outlook, Reporting and Systems

5. 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.
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%
Diversify revenue sources Increase use of volunteers
Increase budget over 2011 Outsource
Reduce overhead expenses Share resources with complimentary organization
Continue or reinstitute staff hiring
Layoff staff or reduce salaries
Adopt new cost-saving measures Leverage capital financing
Increase capital investments Other
Merge with complimentary organization
4 Non- Profit 2013 Financial Outlook, Reporting and Systems

6. 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.
94.94%
93.67%
43.04%
39.24%
26.58%
6.33%
Financial Statements (Statement of Activites, Statement of Financial Position, etc.)
Actual vs. Budget or Prior Year Comparisons
Key Financial Metrics (key financial metrics not included in Financial statements)
Key Operational Metrics
Dashboard
Other
5 Non- Profit 2013 Financial Outlook, Reporting and Systems

7. 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.
77.22%
55.7%
12.66%
7.6%
5.06%
Email Other
Hardcopy packets Dashboard
Direct access to management/financial systems
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).
55.7%
34.18%
7.6%
2.53%
Monthly Other
Quarterly Upon request
6 Non- Profit 2013 Financial Outlook, Reporting and Systems

8. 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% do not know what cloud computing means.
49.37%
29.11%
18.99%
2.53%
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
7 Non- Profit 2013 Financial Outlook, Reporting and Systems

9. 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.
62.03%
17.72%
16.46%
15.19%
10.13%
8.86%
We have no plans to upgrade or replace any business systems
Association or Membership Management
Accounting or Financial Management
Document Management
Business Process Management
Grant Management
8 Non- Profit 2013 Financial Outlook, Reporting and Systems

10. 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).
63.29%
31.65%
5.06%
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.
35.44%
21.52%
21.52%
15.19%
6.33%
$1-4.99 million $5-9.99 million Over $25 million $10-24.99 million
Less than $1 million
9 Non- Profit 2013 Financial Outlook, Reporting and Systems

11. 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.
25.32%
24.05%
16.46%
13.92%
12.66%
7.6%
21-50 employees Over 100 employes 51-100 employees
11-20 employees 6-10 employees 1-5 employees
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.
41.77%
39.24%
10.13%
5.06%
3.8%
Non-profit CFO or Financial VP Non-profit COO Other
Non-profit Executive Director, President /CEO Non-profit Controller
10 Non- Profit 2013 Financial Outlook, Reporting and Systems

12. 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.
11 Non- Profit 2013 Financial Outlook, Reporting and Systems