Strong Financial Management Practices Aid Lutheran Social Ministry's Mission to Serve

Even though it helps 65,000 people each year, the Lutheran Social Ministry of the Southwest (LSMS) knows that an even larger population of individuals is awaiting its services.

LSMS is a multi-faceted, faith-based social service agency based in Arizona that offers an array of services through three divisions: care for senior citizens, resettlement support for international refugees, and emergency assistance and counseling for individuals in its surrounding communities. As a faith-based organization, much of its funding comes from divisions of the church and congregations, but to expand its reach, LSMS is always looking for additional resources.

Grants Needed for Growth

Like they are for so many not-for-profit organizations, government, foundation and corporate grants are crucial to LSMS plans for expanding its reach. To secure this funding, LSMS relies on its ability to demonstrate its strong financial health and accountability – a charge that is tasked to LSMS Controller David Miller and his staff.

Yet when David Miller joined the Lutheran Social Ministry of the Southwest in January 2000 he immediately recognized this important effort could be challenging. The challenge was posed not from LSMS's finances, but rather an accounting package that was much too cumbersome to accommodate the organization's growth.

“When I joined LSMS it was using a custom-built DOS-based system,” Miller said. “Anytime we needed to make changes or updates to our accounts, we had to connect to a modem through a process that was very time consuming.”

Miller realized it was necessary to implement a new fund accounting package that would simplify the agency's accounting processes and improve its reporting and strategic planning capabilities, but he also knew it was important to transition the organization to the new system with the least amount of disruption possible.

Bring in the New

Miller's search for the right product included a review of FundWare (then American Fundware) since he had worked on it for twelve years in a previous position at another organization.

“I was extremely satisfied with the quality of the product when I worked with it before,” he explained. “Based on my experiences I realized that there is no other accounting product available in the market that would better fit the agency's needs. We moved forward right away with FundWare, knowing that the price was right for the value that the product offered to our organization.”

When it came time for implementation of FundWare, the agency opted for on-site training. Miller felt this was important since his staff was familiar with their previous custom DOS program and FundWare uses a Windows interface.

“I thought the Windows environment might slow the transition, but with assistance from FundWare' professional services group, our team learned how to use FundWare with little difficulty,” Miller said. “Overall, the help made the transition very easy internally, and seamless for daily business operations.”

Financial Reporting Guides Strategic Direction

with FundWare in place and the staff trained, the next step became maximizing the software's advanced reporting capabilities.

“In addition to speed, the most critical feature we need from an accounting package is advanced reporting capability,” Miller commented. “Our directors assess the organization's financial situation at the end of every month in order to report back to donors and make decisions about the organization's strategy and focus. Time is critical, so customized report creation has to be quick and accurate.”

To meet this need, the agency implemented FundWare's Extended Report Writer (now available as the Advanced Financial Reporting tool), which is designed to allow organizations to customize reports based on the audience and the level of detail needed. Since FundWare is Windows-based, the time required to customize and create the reports that the Ministry needed was minimal.

“FundWare's reporting tools dramatically cut down on our financial reporting time, and we process a lot less paper in our office now than we did with our old system. Now we can present financial numbers to our directors very quickly, allowing them to take corrective action as soon as possible, if necessary,” Miller said.

Support Comes from All Angles

Miller and the agency's directors were also pleased with FundWare's support offerings.

“FundWare offers local help, online advice and connection to their support staff. If I encounter a problem I can look it up in the online database first to find answers and make any needed corrections on my own. If I still have questions I can ask a member of their support team,” Miller said.

The ease of transition and advanced reporting capabilities have better equipped Lutheran Social Ministry to demonstrate to potential donors the organization's financial viability and strategic plan. Quick and easy preparation of month-end reports, combined with an updated interface and more effective accounting processes, enable the ministry to better serve those in need.