non profit contract management software

Why Adopt Contract Management Software For Nonprofits?

Is your nonprofit organization spending a significant part of daily activities on contract management? Well, if so, contract management software for nonprofits can be a problem solver. Nonprofit organizations can utilize nonprofit contract management software to improve contract management operations and eliminate associated challenges.

Role of Contract Management in Nonprofit Organizations

In nonprofit organizations, nearly all transactions are carried out through contracts. Whether you hire employees or volunteers, you need to offer them a contract. Similarly, people supplying goods to the organization will require a written contract. In some cases, donations, pledges, grants, and other commitments might also need you to prepare a contract.

Similarly, if you need help from professionals like lawyers, doctors, etc., the contracts become an integral part of your dealings. Thus, contract management is a process you cannot ignore in a nonprofit organization.

Nonprofit Contract Management Challenges

Below are the main challenges to expect in nonprofit organizations regarding contract management:

Limited Resources – Whether employees or monetary funds, a nonprofit organization has limited resources, making it harder to manage its operations.

Maintenance of Transparency – The nonprofit organization is exempt from taxes. Thus, your organization will have to undergo an audit and require transparent transactions and contracts.

Unique Objectives – As a nonprofit organization, your goals differ from those of commercial organizations. So, that makes contract management a bit more technical for your organization.

Managing Risk – While entering a contract, your nonprofit organization is always prone to risk. The problems in the contract terms, non-compliance, and other issues enhance the risk for the organization. It can be in the form of hefty financial fines or reputational damage.

Report Generation and Management – Your nonprofit organization needs to generate excessive contract reports to maintain records, update the stakeholders, and indicate final delivery.

 Contract Management in Nonprofit Organizations

Why Adopt Contract Management Software for Nonprofits?

Adopting contract management software for nonprofits can increase automation in your organization, requiring fewer resources to work on the contracts. Moreover, the contracts’ maintenance, completion, and record management become more manageable.

Besides, you can also collaborate better with different stakeholders. The specific challenges nonprofit faces concerning contract management can also be eliminated using contract management software.

How can Non Profit Contract Management Software be Helpful for NPOs?

All the challenges attached to manual contract management can be handled through non profit contract management. Here are a few ways in which non-profit contract management solutions can help your non-profit organization.

1. Streamlining Various Teams’ and Departments’ Supplier Agreements and Contracts

Your nonprofit organization could use multiple formats for different people involved in the contract with the help of contract management software. It is common for nonprofit organizations to rely on manual contract management. But the hassle that comes along and the chances of errors are significantly increased.

With non-profit contract management solutions, you can streamline the contracts pursued by different departments of your organization with considerable ease.

2. Enhancing Collaboration and Efficiency across the Enterprise

One of the significant challenges that you can overcome with non profit contract management software is the lack of cooperation. Using a centralized program for maintaining your contracts lets all the parties involved know the suitable format to deal with the particular stakeholder and the contract’s progress. All of it enhances collaboration and efficiency throughout the organization or enterprise.

3. Maintaining Contract Transparency While Adhering to Federal Standards

As the nonprofit organization enjoys multiple benefits like tax exemptions, grants, refunds, etc., maintaining the federal standards and rules becomes highly essential. Managing these standards gets tricky and can often put the NPO in trouble. Contract management software for nonprofits can streamline your contract process and keep the necessary record.

4. Creating a Systematic Approach to Contract Administration

Finalizing terms, reading the contract, signing it, and then executing are multiple phases of the contract. You don’t have to handle each stage manually when you have the non profit contract management software for your help.

5. Staying on Top of Expiring Contracts and Milestones

Keeping track of all your contracts manually or using Excel sheets is not possible if you have multiple contracts. It means your NPO might be losing opportunities or exposing itself to litigation. An efficient contract management software for NPO can automatically track the expiry and essential milestones, keeping you at the top of everything.

nonprofit contract management milestones

6. Securing Information by Segmenting Contract Access by Role, Team, or Department

Not every contract could be shared with everyone in the organization. Besides, there can be volunteers working with you who must not have access to sensitive information. When contract management is manual, it is difficult to hide such sensitive information from other users. But automated software surely helps you set restrictions, limiting access by role, team, or department.

7. Integrating with Other Nonprofit Applications

A manual contract management process cannot be connected with other applications, thus requiring you to do everything manually. Contract management software for NPOs can let you integrate multiple apps more quickly and efficiently.

How to choose a nonprofit contract management solution?

Below are a few factors and functionality that nonprofit contract management solutions must have. Ensure that your selected non profit contract management solution has these features.

User-friendly – While you have limited resources, you can’t hire a specific professional or train your employees rigorously. So, the software must be easy to use.

Maintain Track of Milestones, Contract Expiry, and Deadlines – In an NPO, your team entering a contract might not be there with you at the time of execution, so your contract management solution must keep track of the essential contract variables.

Tracks important KPIs – Apart from the entire management part, the contract management solution must also track the important KPIs so you can readily get the performance report and adjust accordingly.

Provides accessibility control – Your contract management solution must be easily shareable with the stakeholders. However, you must also be able to limit access.

Summing Up

Adopting contract management software for nonprofits can increase efficiency, reduce the chances of errors and limit the risk involved during the contract. Specialized nonprofit contract management software can allow tracking the critical KPIs. Also, it can let you focus on what is more important for your organization instead of dealing with the contract paperwork.

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