Non-profit organizations rely on donations & charity to function properly. They cannot afford unnecessary expenses and they face too many obstacles regularly. Moreover, they have very limited resources.
But like any other organization they also have assets and equipment and to keep them maintained, they need non-profit asset management. They would not want to raise their burden by manual asset tracking because it will not provide accurate information.
But first, let clear the basics!
What Is Asset Management Software?
Asset management software lets you control, manage, and monitor assets efficiently. This software assist organizations keep their asset secured as it provides the real-time location.
Moreover, it also keeps asset performance-optimized. It provides you asset information all the time such as where the asset is located, what is the status, and so on! Overall, this software offers a holistic and strategic approach to handle fixed assets.
How Asset Management Provide Advantages to Non-Profit Organizations?
It can be an overwhelming task for non-profit organizations to manage assets and as we told above that they have very limited resources.
Until a few years ago, the software was so complicated that an organization needs to train its employees but non-profit organizations do not have time to train its employees.
But nowadays the software is evolved, it is simple to use and no training is required to be given. Meanwhile, these are some extra benefits.
Let us move on to major non-profit asset management software advantages provides.
1. Eliminating Human Error
According to the National Retail Federation report, " Shrink cost responding retailers about 1.33% of sales, on average, in 2017.”
Human error can result in misleading asset tracking and as we know non-profit organizations cannot afford to waste resources. Previously organizations were using a spreadsheet which was a traditional way for tracking assets but it can be used only used when you have very limited assets.
Non-profit Asset tracking software keeps assets record up to date without compromising on accuracy. This software eliminates the improper usage of a spreadsheet.
2. Better Inventory Management
Inventory management may not look like a tough task but in reality, it is very complicated. Inventory management is all about maintaining a balance between overstock or low stock.
However, a lot of organizations are not able to balance. But with asset tracking software you can get all reports and details which help you find that perfect balance.
Furthermore, this software enables you to set inventory levels. Means, when the inventory below goes below the defined level then it automatically alerts and notifies the responsible person about the same. After that, the person starts the inventory refilling process.
3. Avoiding Asset Misplacement
Asset theft, loss, and misplacement are a few of the important reasons for organizations behind implementing asset tracking software, and non-profit organizations are no different. When equipment is not found then employee's time is wasted and productivity is killed.
But asset tracking software keep track of each time and employees do not have to find it. This software has the check-in & check-out feature through which team members can know who has the asset and when it will be returned. Moreover, it increases asset visibility and decreases the chances of asset theft.
4. Proper Asset Allocation
We know that a non-profit organization organizes events from time to time to raise funds and charities. An organization can organize multiple events on one day. Those events must be well managed for example all mics and speakers should work fine otherwise people get distracted.
Most importantly you would not want one equipment is assigned to two different events occurring on the same day & time and this software ensures that no data duplicity occurs.
That is why smart planning and asset tracking software is required. When you have an asset tracking system in place then it will automatically inform you that the equipment is already allotted to another event. Therefore, you will be able to manage spare equipment.
5. Scheduling Maintenance
If maintenance is not done on time then it can increase downtime of assets and equipment. Similarly, if maintenance is not given on time then it impacts the asset life, chances are asset life is decreased and it is not good for non-profit organizations.
Sometimes employees forget when was the last maintenance done so this issue is eliminated when you have asset tracking software. Because it automatically alerts the team for the maintenance so no one has to remember when it will need maintenance. This software also enables you to set a timer after which it notifies, for example, one month, two months, or quarterly year basis.
Moreover, one of the main features of this software is preventive & predictive maintenance in which potential issue is detected before asset breakdown occurred and controlled.
According to Statista, “It is expected that the global predictive maintenance market will reach around 23.5 billion U.S. dollars by 2024. The market is expected to grow at a compound annual growth rate of almost 40 percent between 2018 and 2024.”
A charity-based organization does not have too many resources & they do not have too much money to spend. For them, productivity and complete utilization of resources are necessary. That is exactly why they need non-profit asset management software. It can assist these types of organization to run efficiently and manage assets efficiently.
Asset management allows you to keep your assets organized. It identifies ghost assets and very helpful in internal audits which lets you know if there are any errors in asset verification and process.
Asset management is very helpful in preparing for external audits and keep organization compliance and follows all legal rules and regulations. It can keep your account record clean and transparent which makes your organization trustworthy.
Frequently asked Questions (FAQs)
1. What is a non-profit organization?
A non-profit organization is also known as a non-business entity and they are dedicated to charitable causes. However, they need money as they have volunteers and employees to keep running the organization. So, to fulfill that they require charity and donations.
2. How asset tracking is done?
Asset tracking is done with the help of barcode tags, RFID labels, and several other technologies that are there for effective asset tracking. These asset tags or labels have a unique identification number, these tags are stuck to the asset through which asset tracking is done.
3. Will this software be beneficial for small size non-profit organizations?
Keeping all types of records up to date & generating donor support is essential for all size non-profit organizations. This software can keep all donor lists & information in one place. Hence, this software is useful for all the size of organizations.