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Nonprofit Efficiency: 4 Benefits of Time Tracking You Never Realized

Business organizations are constantly adapting and evolving, striving to become leaner and more efficient to match their environment and competitors. The IT revolution has been an important catalyst for change--companies across every industry, including nonprofits, are implementing new technologies to help streamline their operations.

Arguably, the most important asset for an organization is its human capital--the employees driving sales, balancing books, and overseeing administrative processes. Employee-worked time is an important metric in a well-organized business, making time tracking software a crucial tool for increasing efficiency.

The Case for Nonprofit Organizations

The need for effective web-based time tracking is not limited to the for-profit sector. Nonprofit organizations, traditionally more cautious about implementing new management techniques, are also widely embracing software solutions to track time. Nonprofit organizations can benefit from time tracking software in four distinct ways.

1) An Effective Way to Ensure Accountability

Grantors and funders want to be sure that their donations are being used to finance the projects they care about. Precisely tracked employee and volunteer worked time can go a long way when it comes to increasing accountability to donors. Time tracking software makes it simple for nonprofit organizations to calculate the overall cost of each project or initiative. With the right time tracking solution, monthly and yearly reports are easily generated to demonstrate that donations are, in fact, funding the projects that grantors intended.

2) Easier Path to Increase Transparency

Nonprofit organizations are subject to strict accounting standards, and their organizational expenditures and revenue need to be tracked accordingly. Using the right web timesheet software allows nonprofits to keep track of their organization’s time and expenses, easing compliance requirements and the audit process. A select few web based timesheet services even offer an audit trail feature, which ensures information integrity by logging revisions to critical labor, billing, and cost data.

3) Capturing Passive Data to Measure Performance

Using online timesheets provides valuable metrics for assessing organizational performance. Timesheet companies often provide a comprehensive reporting feature, allowing managers to generate in-depth reports on productivity, expenses, and more. These reports can help nonprofit organizations streamline their activities and utilize their limited funds to accomplish more.

4) Secrets to Planning Ahead

Offered by few companies, advanced estimation tools such as Resource Planning keep managers aware of their organization's labor requirements. These tools allow managers to allocate employee or volunteer time to specific projects. Projects can then be tracked to ensure that time is being budgeted appropriately, permitting managers to constantly monitor progress towards organizational goals. Nonprofit organizations that use project estimation tools are well equipped to prevent runaway projects from draining funds.

The nonprofit world should continue to take cues from the for-profit sector. Efficient business management empowers organizations to dedicate more resources to causes that matter. Technology provides an effective solution to employee and volunteer time tracking needs. All that is left is for innovative managers to implement these solutions across the nonprofit sector.

ClickTime supports nonprofit organizations by offering discounted nonprofit rates. Visit to learn more about setting up a Web Timesheet solution for your organization at a discount. Don’t forget to spread the word to your friends in the nonprofit community!

Shahrukh GhazaliThe preceding is a guest post by Shahrukh Ghazali, Nonprofit Outreach Coordinator at Shahrukh was born and raised in Karachi, Pakistan. He moved to the United States to attend UC Berkeley, majoring in Political Economy. You can follow Shahrukh on Twitter @S_Ghazali or contact him directly at

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