Webinar slides from “Automating Financial Processes to Improve Performance for your Not-for-Profit Business”, featuring Tim McCarthy, Finance Manager, at Feeding America.

1. Automating Financial Processes
to Improve Performance for
your Not-for-Profit Business
Will begin shortly …
Today’s webinar presentation
Hosted by Prophix Software
Presented by Feeding America

2. Automating Financial Processes
to Improve Performance for
your Not-for-Profit Business
Tim McCarthy
Finance Manager
Feeding America

3. Event Notes
• Duration: 45 minutes, with 10 minutes Q&A (optional).
• Please ask questions on today’s topic via the
“Questions” box in your GoToWebinar control panel.
• Link to today’s presentation and recording of this
webinar will be sent out to all attendees within 48 hours.

4. INTRODUCTION

5. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Feeding America
Feeding America is the
nationwide network of
200 food banks that leads
the fight against hunger
in the United States.
 Operating since 1973
 Website: www.feedingamerica.com
 Head office: Chicago, Illinois
 Annual revenue: $2.1 billion
 Number of employees: >200
 ERP: Microsoft Dynamics NAV
VISION
A hunger-free America
MISSION
To feed America's hungry through a nationwide network
of member food banks and engage our country in the
fight to end hunger.

6. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Feeding America’s Impact
46 MILLION AMERICANS
served annually, including 14
million children and 3 million
seniors.
3.3 BILLION MEALS
sourced annually.
202 FOOD BANKS
in our network, 61,000 agencies.
10 MEALS
sourced and distributed for each
dollar donated.
1 BILLION POUNDS
of fresh fruits and vegetables
sourced by our network in 2014.
650,000 VOLUNTEERS
help carry out our vision for a
hunger-free America.

7. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
FOOD IS DISTRIBUTED AND STORED
Member food banks ensure the safe storage and reliable distribution of
donated goods to local charitable agencies.
DONATIONS ARE MADE
Feeding America secures donations from the food and grocery industries,
government agencies, individuals and other organizations.
How the Network Operates
FOOD REACHES THOSE IN NEED
Donations are provided to people in need at food pantries, soup kitchens,
youth programs, seniors centers and emergency shelters.
FOOD IS MOVED
Feeding America moves donated food and grocery products through member
food banks to where they are needed most.

8. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
TIM MCCARTHY
Finance Manager
Feeding America
Previously worked as a technology consultant
specializing in CPM software deployment –
focused on financial planning and reporting.
Responsibilities at Feeding America:
Budgeting/forecasting
Financial reporting
Data analysis
System development and administration
Financial process improvement
Product valuation

9. CHALLENGES

10. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Symptom:
Difficulty projecting future
performance, producing an
accurate revenue forecast.
Underlying problem:
Budgeting and forecasting in our
space involve unknowns. Our
data analysis doesn’t allow us to
evaluate future scenarios.
Challenges

11. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Questions:Operating revenue:
5%
95%
Predictable operating revenue
All other operating revenue
Will we
receive the
gift?
When will we
receive the
gift?
Will
the gift be
restricted?
What
happens if we
lose a major
donor?
Which
programs are
fundable?

12. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Symptom:
Wasted time beyond Finance,
across the organization.
Underlying problem:
Heavy reliance on Excel, and manual data
entry and review.
Those aren’t
my budget
numbers!
Can I just
divide by
12?
Finance
changed my
budget!

13. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
The organization’s growth meant we
could no longer operate like this.
Analysis
Spreadsheet
budget entry
Spreadsheet
aggregation
Report
creation
Data
validation

14. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Business
process flow
chart
Evaluation Process
Recognized the need for Corporate Performance Management (CPM) software as a
centralized reporting/planning solution. Still needed to prepare internally.
Internal pre-work to set out needs helped to define the evaluation process.
Business
process
assessment
Individual
responsibilities
RFP
issued
Vendor
evaluations
Vendor
demos
Contract
negotiation
Reference
checks

15. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Deciding Factors
Intuitive look
and feel
Cost
Robust
reporting
capabilities
Minimal IT
support
requirements
Finance-
focused
admin, not IT-
focused admin
Future product
development
Based on
vendor
proposals and
demonstrations,
we selected
Prophix

16. RESULTS

17. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Implementation Process
Internal deadlines required us to create an aggressive implementation plan.
Perform on-site
needs analysis
Conduct Prophix
admin. training
Implement and
configure system
End user
system training
End user
manuals
10
DAYS
4
DAYS
15
DAYS
15
DAYS ONGOING
Implementation
included
Microsoft
Dynamics Nav
integration

18. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
IMMEDIATE BENEFITS FOR THE ORGANIZATION
First 100 Days
Less reliance
on Excel!
Sense of
ownership
Data integrity and
transparency
Intuitive – short
learning curve
Easy access to data
as needed
Simplified
budgeting inputs
Reports on-demand
vs. on-request
Minimal IT
support

19. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Automated and streamlined processes
Budgeting
Simplified, no longer relying on
distributing/collecting 40+
workbooks
Financial reporting
Additional development of
financial reports
Ad hoc reporting
Utilized Ad Hoc Analysis to
streamline PowerPoint reporting
Financial reviews
Enhanced Board and
Management reporting
Strategic planning
Development of a strategic
planning model with a 10-year
outlook
Software upgrade
Upgraded versions of Prophix with
no problems and minimal effort

20. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Improved Analysis
Feeding America produces analytics showing:
• Financial trends
• Year-to-date against plan
• Average expense per headcount
• Average revenue generated per headcount
Helps to track performance and better manage resources:
• In 2014, Feeding America had a large surplus
– If this happened again, donors could misperceive this as Feeding America
mismanaging investments (and donate less)
Enables Feeding America to identify where donor dollars go:
• Tracking and showing donors how donations led to a specific
number of meals served or pounds of food/produce delivered

21. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Data-Driven Decision Making
Feeding America’s executives use planning
information to make/justify their decisions
‘WHAT IF’ ANALYSIS ANSWERS QUESTIONS LIKE…
• What do we have to invest to get the results we want?
• Which channels (e.g., retail, manufacturing, produce) have
the best opportunity to secure inventory to distribute to the
food banks?
• Where can we best invest our money?
• How do we obtain the highest ROI for our fundraising?
– Conduct scenario planning for various outcomes
– This is the key to the financial forecast and longer term
projections

22. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Core question:
Can Feeding America distribute
Springwire’s inventory (effectively
acquiring their business)?
 Using Prophix to evaluate
viability across an 18-month
R&D program through
December of 2015
Data-Driven Decision Making in Action
Springwire offers free
access to tailored
communication tools,
like cell phones.

23. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Data-Driven Decision Making in Action
PRODUCE PILOT
 At 5 food banks across the United
States
 Goal: evaluate the viability of running
food banks with far more produce
 Stock levels at an all-time high
 Seeking to understand why produce
doesn’t move at regular locations
 Problems with distribution? Lack of
interest? Inventory levels?
Prophix helps analyze
the financial viability
of running their
locations this way

24. KEY LESSONS

25. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Symptoms to Watch for
Difficulty
projecting
future
performance,
producing an
accurate
forecast
Overreliance on
Microsoft Excel
+ wasted time
across and
beyond the
finance
department
Inability to use
all of your
valuable
information

26. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Preparing for the Software Solution
Review and document
your budgeting process
Map out your existing
financial processes
Assess individual
responsibilities in Finance
Evaluate CPM vendors
and request demos

27. FEEDING AMERICA + PROPHIX SOFTW ARE INC.
Getting the Most out of the Software
Automate your
financial
processes with
an eye toward
better use of
your
information
Ask yourself:
“What could
we accomplish
with improved
analysis and
insight into our
numbers?”
Build Executive
or Board
reporting that
allows senior
stakeholders to
leverage
insights
Your
imagination is
your only
limitation. If you
can measure it,
you can model
it with CPM
software

28. Feeding the Nation, Leading the Movement and Strengthening the System
Together, We Will Solve Hunger

29. Thank You
• Link to today’s presentation and recording of this
webinar will sent out to all attendees within 48 hours.
• Provide us your feedback in the exit survey.
• To learn more about how CPM software can help your
organization, feel free to contact me directly at
mtindal@prophix.com or visit our website at
www.prophix.com.