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Why Higher-Ed Advancement Should Embrace Cloud Software

“The cloud” is everywhere. You hear about it daily. And it’s terrifying (initially). I’ll self-identify as a control freak; I like knowing where my stuff is and who is touching it. So, having the information I rely on floating out in cyberspace was scary at first. Could someone just grab it? Does it really even belong to me anymore, or do I just get visitation rights occasionally?

 

Then, I started using cloud software and realized it’s the best and most efficient way for my advancement office to manage, process, and make use of our data. Companies such as Amazon, Microsoft, IBM, Google, Adobe, and many more have adopted the cloud to do business with large volumes of data… and for good reason.

As advancement services professionals, we need to face it. In our increasingly demanding workplace, it’s time to embrace the cloud as a way to accomplish our fundraising goals, increase ROI, and focus on the work we should actually be doing.

Here’s why I buy into the cloud:

1. It’s safer.

Your data isn’t just floating around in the cloud. It’s not up for grabs. It’s protected by some of the best security professionals in the world. According to the Cloud Security Alliance, 64.9 percent of IT leaders are satisfied with cloud security measures, claiming they’re the same or better than traditional models of on-site software hosting. The emergence of the cloud means that third-party companies like Deloitte and the British Standards Institution now certify and audit cloud security. (See this article for more details.)

Can you say the same for an on-site solution? Can higher-ed institutions afford to attract this kind of talent away from the private sector? Probably not.

2. It’s cost-effective.

Servers, upkeep, and maintenance are all covered in the cost of a cloud software platform. Your service provider will perform all the necessary updates, so the days of twiddling your thumbs during an upgrade are gone (although those were the only times I cleaned my office…).

In addition, the cloud can perform data processing much faster than your own managed servers. Data refreshes can be done at increased intervals for up-to-the-minute updates. For example, in my experience (errr, in the experience of a guy I know), scraping information from social media sites can take a lot of processing power and time to aggregate if your computer hardware isn’t built for large datasets. Now that we use a cloud-based service, we automatically get that social media data.

By leveraging the cloud, your desktop computers don’t need to be as powerful as they did in the past. This allows for less of an IT investment in desktops and other hardware, as well as faster performance even with the use of small mobile devices such as smartphones or tablets. Waiting for data to process is overrated. We want data and we want it now!

 

3. More accurate and flexible data.

With the volume of new data produced daily, your database likely isn’t 100 percent accurate at all times. A huge benefit of a cloud solution is that it can integrate with external data sources and bring in the most up-to-date information on your constituents. The process of aggregating data becomes automatic rather than manual, and the data is delivered to you as a finished, ready-to-use product.

4. You can focus on using rather than maintaining the data.

Yes, there’s a peace-of-mind component to reviewing individual records—but it’s more efficient to conduct regular audits instead of poring over records one by one. Specialized cloud software can provide your end users with ready-to-use data and can perform data integrity checks so that you don’t have to. That way you can focus on more important tasks.

5. It’s accessible.

The cloud allows credentialed users to access data anywhere. Instead of needing VPN access for an on-campus server (which isn’t always an option), users can log into the cloud when they’re off site or traveling. This can foster collaboration and increase efficiency, as team members have data at their fingertips whenever they need it. Take Google Drive, which allows you to share and collaborate on documents with colleagues. Like all things with the cloud, you can tailor or scale the accessibility of the information depending on your business needs.

 

6. You still have control over your data.

You can still hold onto information like social security numbers and other highly sensitive data. Sometimes demographic information (addresses, email addresses, etc.) is all it takes to get a cloud application working. You only have to send the pieces that are going to help you solve your problem—not necessarily the entire database. However, you should send some key identifier that will let you link the data in the cloud back to your primary database so that you can connect the cloud-assembled data and your protected data.

Remember: Advancement services is about putting information into the hands of the people who need it the most. It’s up to us to enable frontline fundraisers to go out and build donor relationships for the benefit of our institutions. By letting the computing elite worry about the processing, security, and storage of our data, we can focus on our core competency: providing insights that will help our fundraisers close gifts and improve the lives of our students.

 

Matt Gullatta is the director of advancement services at Ashland University. Since becoming an advancement services professional in 2007, Matt has made it a personal mission to make data accessible, reliable, and fun. You can find Matt on Twitter, likely chasing down big data and analytics trends or posting animated GIFs.

Endowment Spending & Growth Calculator

Enter your fund's current value and adjust the return, spending, and inflation sliders to see how its value in today's dollars changes over time.

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4. Continue to Steward Donors

Your relationship with the donors who give to your endowment doesn’t end when you secure their gifts. Because your endowment exists to make a difference in the long term, your supporters will want you to keep in touch about its progress. Ongoing stewardship means keeping donors updated about your endowment’s performance and impact. A report that strengthens your relationship with donors should cover:
  • The fund’s balance at the start and end of the year
  • Spending amounts and allocations
  • How the fund’s returns compare to your investment targets
  • A short narrative detailing the specific impacts the endowment achieved
Create a report for each endowment rather than sending an identical document to everyone. A donor who endowed a scholarship wants to hear about the students it supported, while a donor who endowed a building fund wants updates on construction projects.

5. Upgrade Your Endowment Management Tools

Your endowment management tools should make applying your spending policy across every fund easy. Investing in dedicated software is especially useful as your endowment grows. Handling unitization in spreadsheets might work for a few funds, but as you begin to manage dozens or hundreds of gifts, dedicated software can save your team time spent manually calculating gains and losses for each one.

Why Nonprofits Need Dedicated Endowment Management Software

Dedicated endowment software brings accuracy and consistency to every part of the management process, from tracking individual funds to improving security. See how these solutions compare to a spreadsheet-based approach: nfographic table outlining the information below.

How These Methods Compare:

In managing your endowment with traditional spreadsheets, you may see:
  • High administrative burden: Manual entry across disconnected systems
  • Limited security and audit footprints: Reduced version control and audit trail visibility
  • Difficulty with donor transparency: Spreadsheets provide only static data that is difficult to turn into custom results.
By using dedicated software, you are likely to find the following improvements:
  • Lower administrative burden: Automated fund tracking and calculated allocations
  • Enhanced security and audit footprint: Audit-ready reconciliation with clear tracking
  • Greater donor transparency: Connects with reporting platforms
Dedicated endowment management software keeps your organization compliant while freeing up the time your team once spent manually managing spreadsheets.

Secure Your Endowment with Balance by EverTrue

Effective endowment management begins with excellent accounting. Balance by EverTrue handles unitization, applies spending rules, and produces audit-ready reports, so your team can spend more time on the donor relationships that built the fund in the first place.
  • Turn your data into a clear picture of long-term impact. Combine accurate fund accounting with donor reporting that showcases impact.
  • Connect with the tools you already use. Pair Balance with Impact by EverTrue and ODDER by EverTrue to create and deliver compelling digital endowment reports that you can send to donors with ease.
  • Know where every fund stands in real time. Check market values, gift history, and available spending for any fund. Then, share view-only versions with your team, so everyone stays informed.
With Balance, your team can stop spending all your time on manual management and instead add balance to your endowment workflow.

Additional Resources

To learn more about managing your endowment and other ways that technology can help your organization, check out these additional resources: Less stress, higher endowment funds. Discover how Balance provides the organization, security, and accuracy your endowment needs. Request a demo.
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