“I thought it would be easier by now.”
That’s what a nonprofit executive shared with me recently. She had been with her organization since its founding more than 12 years ago. With an established reputation, a dedicated team, and a track record of making a meaningful impact in the community, she expected the day-to-day operations to feel less overwhelming.
Like so many leaders in the nonprofit space, she’s come to realize that doing good doesn’t mitigate operational demands. In fact, growth often brings greater complexity – especially when your mission depends on your ability to do more with less.
The Intersection of Passion and Process
Nonprofits are driven by purpose, but fulfilling that purpose requires navigating complex operational demands – managing funding, people, compliance, and reporting.
The challenge for nonprofit leaders is balancing their passion for the mission with the structure needed to support it. Without the right system in place, even the most dedicated teams can struggle to keep up.
A comprehensive human capital management (HCM) system helps connect the dots – giving leaders the tools they need to align people, programs, and funding with the mission they’re working so hard to advance.
Beyond the Basics: Tracking the Full Picture
As nonprofits grow, so does their organizational complexity. Staff and volunteers often split their time across departments, locations, and programs. Leadership needs visibility across projects, grants, and departments – not just for compliance, but to make smarter, more strategic decisions. It’s essential for nonprofits to track the right data, in the right ways, across the full scope of their operations.
Employee Time
Grant management remains one of the most demanding operational challenges facing nonprofits. Tracking and allocating employee time across multiple funding sources is a tedious and error-prone process, especially when spreadsheets or disconnected platforms are involved. Employees may be funded by a blend of grants, general fund dollars, and program-specific allocations, so accuracy is critical – and it starts with tools that are both robust and intuitive to use.
Without accurate time tracking, compliance suffers, and so does your eligibility for future funding. A mobile, user-friendly system makes it easy for employees to log time accurately while staying focused on the mission.
DEI Data
Today, many grants require detailed reporting on the composition of your workforce, by gender, race, ethnicity, role, and leadership level. For nonprofits, this data may be difficult to assemble, leading to missed deadlines or incomplete applications.
But DEI reporting isn’t just about meeting external requirements – it can also be a powerful internal tool. With a system that tracks workforce composition in real time, nonprofit leaders can assess how well their hiring and advancement practices align with their organizational values.
Labor Expenses
Labor is the largest expense for most nonprofits, and yet many don’t have real-time visibility into how staffing decisions impact their budget. Compensation increases are often made without full context – based on spreadsheets or disconnected data – leading to budget overruns or compliance risk.
An integrated HCM system brings all the necessary data together, combining compensation planning with performance management, salary history, and grant funding. With this level of insight, leaders can manage labor costs responsibly.
Volunteer Records
Volunteers are essential to nonprofit operations but often lack the same tracking systems as employees. Tasks like verifying background checks, managing compliance training, and tracking volunteer hours are often handled manually, creating critical gaps.
In one case, a large religious organization required volunteers to complete and annually renew safety training. When tracked manually, things slipped through the cracks, creating potential liability.
A centralized platform that automates compliance reminders, stores certifications, and tracks hours by volunteer helps safeguard your organization while supporting volunteer engagement and appreciation.
Multi-function Tracking
As operations expand, so does the need to simultaneously track multiple functions. A flexible HCM system that separates department tracking from grant tracking allows organizations to:
- Maintain a clear picture of operational performance, even when grants expire
- Manage and report seamlessly across all functional and funding areas
- Access real-time data via dashboards and embedded reporting
This level of insight enables nonprofit leaders to address issues before they escalate and make more informed, mission-aligned decisions.
How HCM Systems Drive Retention
Investing in an HCM system may feel like a luxury for mission-driven organizations – but in reality, it’s one of the smartest long-term investments you can make.
While nonprofits may not always match the salaries of their for-profit counterparts, they often provide a richer sense of purpose, a more supportive culture, and better overall benefits. Communicating this value to employees is key, and that’s where a comprehensive HCM system plays a critical role.
With tools like total compensation statements, embedded training and onboarding videos, mobile self-service, and employee feedback surveys, a strong HCM platform does more than streamline HR – it becomes a tool for retention and engagement.
Ultimately, the right HCM system reduces administrative burden, improves compliance, and helps you do more with the resources you have.
Connect with CBIZ Human Capital Management to Learn More
Without the right tools, even the most dedicated nonprofit leaders risk being buried under inefficiencies and missed opportunities. You didn’t take this role to manage spreadsheets, chase down timecards, or piece together DEI reports from disparate systems. You started it to make a difference. With the right support, you can stay focused on your mission.
Connect with CBIZ to explore how our human capital management solutions can help align your people, processes, and purpose.
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