The people who make decisions in accounting make it based on three categories. First, people who manage a business, second, the external people of a business who have a direct financial interest to a business, and third the people and organizations that have an indirect effect on a business. This applies to nonprofit organizations as well, those that take in donated money to help a certain cause.
This is the reason why it’s important for people who handle finance to have an able helper. In the case of nonprofit organizations, they need someone or something to help with donor management especially when donations start pouring in. A donor manager would help these organizations handle and manage finances effective and improve operational effectiveness.
Management refers to the group of people who are in charge for operating a business and for measuring up to the profitability and liquidity goals. If a business is extremely large, then the management will most often require more than one person, and the people are hired to perform their job. Managers need to answer important questions such as what was the company’s net income, and if they have a substantial rate of return. Does the company have enough assets, and which products bring in the most money? When making a decision, managers usually follow a systematic approach. Even though larger businesses require a more concrete analysis, they follow a similar pattern to small businesses.
If an organization, both nonprofit and otherwise, has a good accounting system, all the money that comes in and comes out would be well accounted for. On top of that, it would be easier to track donors, donations, and the beneficiaries of the donations. Sometimes, a donor manager can even take advantage of the power of the Internet to make a certain nonprofit organization known; thus, opening the way for more donors who would further whatever cause the organization is supporting.