Non-profit organizations require a variety of funding sources to help further their cause, but effective management of these sources can become complicated if adequate tools are not employed. Two of the most popular software platforms that help in managing funding sources are actually meant for rather different purposes.
It is important to understand how these tools work, where they differ, and ways in which they can help further the mission of your nonprofit in order to ensure that your nonprofit makes savvy financial decisions, remains well-organized, and continues to grow in a positive way. This is important no matter what your needs are—whether it is more frequent charitable giving or if grants.
What is a Workplace Giving Software Solution?
Workplace giving software is a technology solution that allows employees to make donations to charitable causes via their employer. This type of software is mainly meant for use in corporate organizations that offer charitable donation matching schemes, payroll charitable contributions, as well as charitable volunteering as a form of corporate social responsibility.
This software is usually offered by employers to the employees, giving them the power to help nonprofits in a simplified, automated process. Nonprofits benefit from this since they are highlighted in the platforms, giving them an opportunity to access more donors who belong to purpose-driven businesses.
How Does It Work?
Essentially, workplace giving platforms make employee giving simpler. Employees pick a charitable organization, set either a one-time contribution or a recurring contribution that is often taken from payroll, and employers match contributions as per company guidelines.
A typical example of this software is Benevity, a popular corporate giving software that assists businesses in managing charitable contributions, volunteering activities, as well as impacts, in one place.
Important functions of workplace giving software include:
- Employee donation platforms where employees can search, choose, and donate to charitable organizations
- Handling Matched Gifts to Double the Effect of Employees' Contributions
- Time Tracking Software that records time spent, in some cases converting time into dollars
- Campaign Management for employers' cause-related giving campaigns
- Reporting Dashboards for CSR Teams to Monitor Engagement & Community Impact
Non-profits will benefit from being visible in workplace giving platforms as a source that the thousands of employees can rally around.
Comparing and Contrasting It to Grant Management Software
Though both workplace giving software solutions and grant management software solutions promote charitable giving to nonprofit organizations, they in fact address the topic from completely distinct perspectives.
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Feature
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Workplace Giving Software
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Grant Management Software
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Primary User
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Corporate employees and CSR teams
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Nonprofits and foundations
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Funding Type
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Individual employee contributions
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Institutional grants
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Donation Process
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Payroll deduction or employer match
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Application, approval, and fund disbursement
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Key Focus
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Employee engagement and philanthropy
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Program funding and compliance
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Typical Integration
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HR systems, payroll
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Finance systems, impact tracking tools
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In a nutshell, workplace giving software makes giving more convenient, often involving smaller increments of giving. Meanwhile, grant management software is primarily involved in managing large amounts of funding from application to report out.
How They’re Related to Nonprofits
As far as nonprofits are concerned, both tools are beneficial but in a rather distinct way. The use of workplace giving software can help nonprofits gain greater visibility and access to funding from employee charitable contributions, especially in the case of large corporate employers.
By contrast, grant management software helps nonprofits effectively apply for, accept, track, and report on more substantial institutional grants. It is a software that is crucial to those nonprofits that must track the funds that require them to be in compliance.
A successful nonprofit could be represented on employee giving platforms to increase unrestricted giving dollars while, at the same time, utilize a grant management solution such as Fluxx to oversee complicated programmatic grants from foundations as well as government agencies.
How Fluxx Works with Nonprofits
Fluxx is specifically designed to help nonprofits as well as grantmakers in managing the entire process of grants from start to impact. Fluxx is not a workplace giving tool, but Fluxx can be used in conjunction with such tools to help in managing the funds that flow in as grants.
Nonprofit organizations will be able to:
- Consolidate grant applications & approvals
- Keep track of what is being delivered in relation to outcomes
- Budget according to constraints and timelines
- Automate workflows of compliance reports
- Give leaders a real-time dashboard
As a benefit to nonprofits that participate in workplace giving campaigns, Fluxx makes sure that the other part of the equation, grant management, is as smooth and transparent.
Employ These Techniques to Strengthen Both Sides of Your Funding
Both workplace giving platforms and grant management software are important components in the continued functioning of a nonprofit mission. The former drives community and donor engagements, while the latter drives accountability and impact.
By understanding how each solution functions as well as how they interrelate, nonprofits can develop a funding solution that is both flexible and scalable. With a Fluxx-like solution at your disposal, you will not only experience operational efficiency gains, but ultimately gain clarity in what matters most—your mission.
Ready to update your approach to grant management in order to maximize funding efficiency? Request a demo of Fluxx today and see how we help nonprofits align purpose with performance.
