Foundations Benefit from Back Office Outsourcing Too
Outsourcing has been defined as the process of contracting out a business process which an organization may have previously performed internally. Back office outsourcing is one sector of outsourcing that focuses on providing back office services to companies. Its job functions are more specific; thus, it requires people with the specialty for the job.
For years, companies benefited in contracting their business processes to third-party service providers, mainly in making part of the operations cost-efficient.
But companies are not the only ones who have benefit-ted from the industry. Professionals and independent business owners have also turned to the services to help them with their growing number of tasks. Even foundations and non-profit organizations have acquired the services. Yes, you heard it right.
Non-profit organizations and foundations are devoted to spreading their charitable purposes by donating funds and giving support to other organizations, or providing a source of funding for its own purposes through fund-raisers. This organization is owned by a group of people, all of them spreading their charitable purposes.
There are also private foundations that are typically owned by an individual or a family.
The number of foundations have doubled to 80, 000, with thousands more that are newly formed each year. According to Foundation Centre, a leading philanthropy source in US, about 70 percent have assets of less than $1 million.
Despite the differences among these kinds of organizations, they all have the same sentiment when it comes to running their organizations; doing their activities for charitable causes and running their administrative functions are two factors that can’t go well together for the people behind these groups.
In the past decades, administrative tasks expenditures costs these foundations millions of dollars, all spent for infrastructure, staffing and other fees needed to run the back office.
But with the arrival of back office outsourcing, many headaches and heartaches were saved from the foundations, especially the smaller ones.
When non-profit organizations outsource their back office functions, they can save between 25 to 45 percent of their budgets intended for administrative functions.
These non-profit organizations are already deluged with their need to raise money, support their programs, and increase awareness of their cause, that most of the time, the idea of handling all the back office functions is an additional burden to their backs. The main reason foundations outsource is to take away the headache of these people and focus on their philanthropic activities.
One founder shares the benefits she experiences with back office outsourcing. Suzanne Skees is the founder of The Skees Family Foundation with $2.3 million in assets. She relates the time before she acquired the outsourcing of back office services; most of her time was spent doing administrative tasks. Now, she has more time spent reviewing requests for donations, consulting and advising NGOs for start-ups.
And it’s not only the back office outsourcing that’s giving benefit to these foundations, but also software companies, in matters of automation of the processes.
Efficiency is definitely the key as to why these foundations have been outsourcing some of their functions or taking advantage of back office services. It has given ease and on-time delivery of the needed output from the back office, and it has given foundations a more organized back office process with less people, less time, less cost, but better yields. Surely, outsourcing back office services can cater to a wide variety of audience.
For years, companies benefited in contracting their business processes to third-party service providers, mainly in making part of the operations cost-efficient.
But companies are not the only ones who have benefit-ted from the industry. Professionals and independent business owners have also turned to the services to help them with their growing number of tasks. Even foundations and non-profit organizations have acquired the services. Yes, you heard it right.
Non-profit organizations and foundations are devoted to spreading their charitable purposes by donating funds and giving support to other organizations, or providing a source of funding for its own purposes through fund-raisers. This organization is owned by a group of people, all of them spreading their charitable purposes.
There are also private foundations that are typically owned by an individual or a family.
The number of foundations have doubled to 80, 000, with thousands more that are newly formed each year. According to Foundation Centre, a leading philanthropy source in US, about 70 percent have assets of less than $1 million.
Despite the differences among these kinds of organizations, they all have the same sentiment when it comes to running their organizations; doing their activities for charitable causes and running their administrative functions are two factors that can’t go well together for the people behind these groups.
In the past decades, administrative tasks expenditures costs these foundations millions of dollars, all spent for infrastructure, staffing and other fees needed to run the back office.
But with the arrival of back office outsourcing, many headaches and heartaches were saved from the foundations, especially the smaller ones.
When non-profit organizations outsource their back office functions, they can save between 25 to 45 percent of their budgets intended for administrative functions.
These non-profit organizations are already deluged with their need to raise money, support their programs, and increase awareness of their cause, that most of the time, the idea of handling all the back office functions is an additional burden to their backs. The main reason foundations outsource is to take away the headache of these people and focus on their philanthropic activities.
One founder shares the benefits she experiences with back office outsourcing. Suzanne Skees is the founder of The Skees Family Foundation with $2.3 million in assets. She relates the time before she acquired the outsourcing of back office services; most of her time was spent doing administrative tasks. Now, she has more time spent reviewing requests for donations, consulting and advising NGOs for start-ups.
And it’s not only the back office outsourcing that’s giving benefit to these foundations, but also software companies, in matters of automation of the processes.
Efficiency is definitely the key as to why these foundations have been outsourcing some of their functions or taking advantage of back office services. It has given ease and on-time delivery of the needed output from the back office, and it has given foundations a more organized back office process with less people, less time, less cost, but better yields. Surely, outsourcing back office services can cater to a wide variety of audience.
About the Author
Miche is a self-employed blogger and copywriter from Philippines who has a love on writing and always happy to share his passion on blogging.