Monthly Archives: January 2011

What is the Strategic Value of New Nonprofit Software?

Posted on January 27, 2011 by vertex| 1 Comment

Many executive directors and IT professionals working for social service agencies hear the same “benefits” from nearly every software vendor as they search to upgrade.

Over and over, the same tactical benefits are touted and these vendors all start to blend together. And with the advances in technology, many of the really good and grounded nonprofit software companies offer products that are similar in nature, with similar features.

So, so how does the management team of any social service agency decide on the right vendor to overhaul their IT infrastructure?

Our advice – look for the software expert who will provide you with strategic value so you can incorporate the benefits their solution into your agency’s mission.

What does that Mean?
Many software vendors will explain that their product will:

Be Easy-to-Use
Make You More Productive
Increase Your Efficiency
Be Easily Integrated
Save You Time

But most software products that are customizable and specifically created for the social services industry will do these things. There is usually a difference in the quality of support, training, and implementation but the products from quality software companies have a lot of the same benefits and share the same features.

You want to look for the nonprofit software vendor that will demonstrate how their software will bring a strategic value to your organization.

That value can be a part of your plan to sell your IT upgrade to a board or to stakeholders. It can be applied to your near- and long-term plan for growth. It can be used to allow you to see the bigger picture for your agency and plan accordingly. For example, your new system would allow you to think in terms of and plan for gaining the strategic benefits of:

Business Advantages
Cultural Improvements
Financial Returns

Your new software provider and new plan should be able to help you be flexible for agency growth; allow for an increase in services being offered; improve service quality; improve teamwork, collaboration, and staff retention; maintain a healthy cash flow; improve competitiveness for contracts; bring a return on investment and more.

Strategic value leads to better business decisions for your nonprofit agency. It allows you to serve people and serve more of them over a longer period of time. Sure, role-based reports are great to have – but that is a tactical benefit. It’s what you do with the report information that will allow you to make better decisions for your organization.

Vertex Systems provides you with a qualified needs-analysis and a strategic plan to help your agency grow and thrive and not just survive. We make sure you have everything you need to ensure your goals are reached and we do not simply promise that productivity will be improved and money will be saved.

From the moment you begin talking with us, we dig deep to discover what your needs and goals are. We make sure you have all the tools at your disposal, as well as a qualified plan specific to your mission.

Beware of software vendors who are not ready or willing to become your partner to help you succeed. Beware of those who hand you an off-the-shelf product, give you a slap on the back and a “Good luck!” as they push you on your way.

What About the Tactical Benefits?
Don’t get us wrong – we will provide you with customized products based solely on your agency needs that will solve those tactical problems.

We will provide you with technology designed specifically for organizations that serve those with disabilities that will eliminate redundant data entry, improve efficiency, improve productivity, reduce cost, increase revenue, boost staff morale, increase client satisfaction, keep you compliant and remove your fears of DOL audits.

We have over 400 installations, in over 35 states, over the past 30 years. We know and understand the needs of the human services industry. And we’ve created solutions that address your fears and needs, based on feedback and input from professionals like you.

But we go the extra mile by providing the strategic vision that your organization needs to truly make a difference. And keep making it.

Also, we’ve just released a few new whitepapers on helping nonprofit execs make strategic planning decisions on IT. Check them out!

About Vertex Systems, Inc.
Vertex Systems is a leading provider of software and support solutions for social service nonprofits that serve people with disabilities. Vertex Systems software helps human service agencies be more efficient and effective, provide quality information for better decision-making, and stay compliant with regulators and accrediting bodies. For 30 years, Vertex Systems has offered field-proven solutions that provide accurate electronic documentation solutions to help streamline the processes at over 450 agencies.

They offer case management, attendance, financial management, manufacturing management, service billing, and client payroll management software systems. Vertex Systems also provides an enterprise solution that connects all the modules together to improve teamwork, increase accuracy, and reduce steps to save time and save money for agencies that serve those with disabilities.

Visit Vertex Systems software for more information about our state-of-the-art solutions for agencies that serve persons with disabilities and barriers to employment.

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Posted in Case Management Solutions, Client Payroll Software, Electronic Documentation for Nonprofits, Non-Profit Business Advice, Non-Profit Software, Nonprofit Management Software, Nonprofit Overheard Costs, social service nonprofit, Social Service Software, Social Services Technology, software for social services

Tagged social service budget cuts, social services it consultants, social services nonprofit, Social Services Software

Cutting Budgets Only Shifting Costs

Posted on January 20, 2011 by vertex| 1 Comment

More budget cuts are coming across the country. States are being forced to really tighten their belts. For example, Texas is really coming down hard on public schools, college students and Medicaid recipients.

The Dallas Morning News recently reported that the state legislators will be cutting back on funding for those with disabilities:

…a state agency would have to close two of the 13 institutions for the mentally disabled, once called state schools. A sister agency would have to privatize one of the state’s 10 mental hospitals and withhold community-based treatments to nearly 5,000 of the 65,000 mentally ill now helped.

Nearly 7,000 fewer deaf, blind and disabled Texans would receive vocational rehabilitation — a 7 percent trim. Child abuse prevention funds would be cut by more than one-third. Nearly one-fifth of the 32,000 young children with serious developmental disabilities now getting help would do so no longer.

These are drastic cutbacks and one can’t be sure the state leaders of Texas or the others states slashing budgets are aware of the consequences. This is basically uncharted territory they’re headed towards.

The article mentions job losses for those serving these people but it doesn’t delve too deeply into what’s going to happen to all the disabled people who have been receiving treatment and have been making progress in their programs.

And many politicians have a misguided notion that they’re doing what they have to in order to save money. To them, it’s a black and white issue – there is no gray area at all. Their states are in trouble but these cuts could really end up costing them – and their constituents – more money in the long run.

Imagine this scenario – there are budget cuts to a state Medicaid program. Recipients are no longer being cared for and some turn to their emergency rooms for care. Hospitals face their own budget crisis and have to demand more money from the state to stay in business. And they demand better rates from commercial health insurers. Health insurers pass on the profit loss to those they cover – the taxpayers – and the states pass on their loss to the taxpayers as well with higher taxes. Many facilities will close and those people will end up on the unemployment line to collect benefits (funded by taxpayers.)

And those increased amounts the taxpayers will pay won’t go away anytime soon, in that scenario. They’ll end up paying for the state’s budget cuts in higher dollar amounts than they would have if the care for the disabled and the poor had continued. Much more.

Here’s a great quote from Michigan governor Rick Snyder:

“If we did a better job on frontline mental health services, you have an opportunity to actually help individuals then be successful, to hold a job, to be a taxpayer, to be a part of society. By not helping them, by leaving them without assistance in terms of some good, professional help, you put them on one of two paths: they end up on an acute care hospitalization path where they end up in multiple ER visits, hospitalization and/or homelessness; more likely, they end up in the Corrections system.” Snyder explained.

As information technology and business consultants to social services agencies that serve those with disabilities, we’ve been recommending to existing and potential clients that they re-examine their strategic vision and goals. Instead of making budgetary cuts to staff and services.

One quote we bring up with them usually starts the conversation:

“The bottom line is you need to reposition yourself now. You need to do some things immediately and then, more strategically, figure out where you are going to be in a year or even year and a half.” - Jeffrey Forman, CPA, Forman & Associates Consulting

We always ask those whom we provide consulting services – is it possible to cut their way to prosperity? And it’s the same situation being faced by the states. Slashing and burning a budget, instead of making true reforms, will only cause further problems and possibly higher costs down the road.

If you’re an executive director of a nonprofit, or in management for a human services agency, talk to Vertex Systems about how we can give you a strategic vision through a quality needs-analysis of your operations.

We can help you not only survive budget cuts but thrive with a plan that describes how technology will support your business goals contained in your agency’s strategic plan and mission statement.

Talk to us today. Call 866-981-2600.

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Posted in Non-Profit Business Advice, Non-Profit News, Non-Profit Software, Nonprofit Management Software

Tagged medicaid cuts, nonprofit business strategy, nonprofit consultants, nonprofit strategic planning, social services it consultants

Vertex Systems Announces Support for Campaign to Save Medicaid

Posted on January 18, 2011 by vertex| 1 Comment

PRESS RELEASE – Vertex Systems, Inc., the leading provider of case management, vocational payroll, service billing and financial management software for social service agencies that help those with disabilities, announced their support for the SaveMedicaid.org website and petition campaign.

SaveMedicaid.org is a nonprofit site dedicated to demonstrating to the country’s leaders, governors, and representatives how important it is to maintain funding for America’s Medicaid program to continue helping all the people it serves.

The SaveMedicaid.org site collects signatures, provides news on state Medicaid cuts, and gives tips on how to contact state and federal representatives to save the vital funding. On July 1^st, 2011, the federal stimulus money for Medicaid will stop. Prior to this, SaveMedicaid.org will be sending their petition and formal letters to state governors and federal representatives urging them to do their part to help the poor and infirm in this country.

“We understand the recession has had a huge impact on state budgets,” said Tim Clark, the Director of Marketing for Vertex Systems. “But we know taking away funds from the sick, elderly, disabled, and children without health coverage is not the answer.” He added that nearly all states have a budget crisis and most are considering major cuts to Medicaid. Those cuts will result in loss of services and programs for those who cannot help themselves.

“Slashing away at Medicaid will also mean more lost jobs in those states. And businesses will lose revenue from the money the jobless would have spent. People will go without care they need. Hospices will close. People will die. Others will be forced to seek care elsewhere, like the emergency room. Which means the states will have to spend more than they save on these cuts,” said Clark.

A recent national poll from Zogby International shows that “65% of likely voters say they oppose policies that resulted in cuts to Medicaid funding for nursing home care for America’s poor and elderly.” The poll concluded that, “72% say the federal government’s role in helping states meet their financial obligations to cover programs such as Medicaid is important.”

(See also this report on Medicaid shortfalls.)

“This is something the people want. And people who still want Medicaid cuts may not understand how it will hurt those who need it and how it will hurt their economy,” stated Clark. “I know that SaveMedicaid.org is trying to keep our leaders from taking drastic steps that will only shift costs and possibly increase state spending. And Medicaid cuts may harm and kill our citizens.”

Vertex is asking for people to get involved, talk to their representatives, sign the petitions, and do what you can to make sure people get the help they need.

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About Vertex Systems, Inc.

Vertex Systems is a leading provider of software and support solutions for nonprofit organizations that serve people with disabilities. Vertex Systems software helps social service agencies be more efficient, provide quality information for better decision-making, and stay compliant with regulatory funding sources. For 30 years, Vertex Systems has offered field-proven solutions so human service executives can concentrate on running their agencies. They offer case management, financial management, service billing, and sheltered workshop payroll management software. Vertex also provides an enterprise solution that connects employees to all the systems to improve teamwork, increase accuracy, and reduce steps to save time and save money.

For more information on Vertex Systems software, visit the web site at www.VertexSystems.com.

About SaveMedicaid.org

SaveMedicaid.org is a non-profit campaign designed to ensure America will continue to help those who receive Medicaid. The site’s goal is to have as many people as possible sign the petition so it can be turned in to state governors and federal representatives before the July 1, 2011 cut off date of federal stimulus dollars. They understand that people with disabilities, the elderly, children, and the poor depend on Medicaid and that state economies will be hurt by these cuts.

For more information on SaveMedicaid.org, visit the web site at www.SaveMedicaid.org.

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Posted in Non-Profit News, Non-Profit Software, Vertex Systems News

Tagged medicaid cuts, save medicaid, vertexsystems

Who Says Helping Others Doesn’t Pay?

Posted on January 14, 2011 by vertex| 1 Comment

Many nonprofit agencies help those with disabilities find and keep employment or have them work within vocational rehabilitation facilities. Their clients get personal satisfaction out of their daily routines of going to work, doing a great job, and enjoy getting a paycheck as their reward.

But the money being spent to train them and help them find a job doesn’t magically appear from thin air. And many of those with disabilities are collecting benefits from Social Security and Medicaid, which is always a big burden on an overwhelmed institution.

There’s a great story from Oklahoma where the Department of Rehabilitation Services was able to collect $2.3 million dollars from Social Security for helping benefit recipients find occupations that took them off of Social Security.

It’s a great story and was a great help to everyone involved. The state unemployment rate went down as new jobs were added. More money was entering the economy from the workers with disabilities. The number of people on and the amount of money being removed from the Social Security payroll was reduced. And the nonprofit agency offering the services was rewarded for their good deeds.

More than one million Americans with disabilities are served by vocational rehabilitation programs funded by Rehabilitation Services Administration (RSA). Support services include vocational evaluation, counseling and guidance, work adjustment, diagnosis and treatment of physical and mental impairments, education and vocational training, job placement and post-employment services.

The best part of the story? This quote:

Social Security Administration guidelines had determined the 135 people were unable to do any kind of work and that their disabilities were expected to last at least a year or to result in death.

There was no expectation of future work (or even, in some cases, life) from any of the individuals involved. But the great work of the Department of Rehabilitation Services proved them wrong.

I’m sure the financial reward from the Social Security administration was a welcome relief and a way to help them continue their mission, but it probably doesn’t equal the value to the staff of the smiles on the faces of the people they helped.

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Posted in Non-Profit News

Tagged department of rehabilitation, social security, vocational rehabilitation, vocational rehabilitation payroll

Disability Employment Stats for December

Posted on January 11, 2011 by vertex| 1 Comment

The Department of Labor has released the employment statistics for those with disabilities for the month of December.

In December 2010, the percentage of people with disabilities in the labor force was 21.0. By comparison, the percentage of persons with no disability in the labor force was 69.6.

The unemployment rate for those with disabilities was 14.3 percent, compared with 8.9 percent for persons with no disability, not seasonally adjusted.

You can read more about it on the DOL website.

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Posted in Non-Profit News, Vertex Systems News

Tagged people with disabilities unemployment

More Nonprofit Spending on Overhead is Needed

Posted on January 6, 2011 by vertex| 1 Comment

One of the software products our company creates for nonprofit agencies is a accounting module, called the Vertex Financial Manager. We’re always doing research to make sure we can provide expert consultation to nonprofit executive directors.

Recently, we were looking for best practices on financial reporting, analysis and record keeping. And we ran into an educational site giving this accounting advice for nonprofits:

As much as possible, nonprofits should strive to minimize overhead or administrative costs, that is, costs to support the resources that support the entire organization and all programs, rather than just one program.

While this type of advice seems to make sense on the surface – don’t spend money on office supplies, spend it on your programs so you can help others – it actually does more harm than good.

Consider the actual statement: minimize administrative costs… the same costs that “support the entire organization and all programs”. And their mission. In other words, bite the hand that feeds.

In a recent study by the Center on Nonprofits and Philanthropy, Urban Institute Center on Philanthropy at Indiana University, titled the Nonprofit Overhead Cost Project, they concluded that nonprofits feel pressured to keep overhead costs down.

And this, in turn, compromises their effectiveness…

These overhead or administrative costs include facilities, human resources, computer systems, vehicles, and, yes, office supplies. They make up the infrastructure of the nonprofit agency. Without the right infrastructure, the organization cannot effectively do its job.

But the constant focus on keeping overhead costs down is built in to the system. Many contributors and funding sources put limits on the amounts being spent on administrative costs. Because of these restrictions the agency must limp along, making due with what they have, and dealing with antiquated systems and low salaries (and high turnover) for quality staff.

There are alternatives that must be considered because the overall effectiveness of a nonprofit agency is being damaged by this lack of infrastructure. One would be hard-pressed to find a nonprofit that is overpaying the staff, in comfortably large offices, with drawers overflowing with office supplies.

In this study, none of the agencies with an adequate infrastructure were wasting money or over-spending. They were the ones with the tools to perform their jobs and make the best use of the funding they had.

While there are not many options for an organization with no or low money for overhead, steps can still be taken now to make a difference down the road.

One option would be to grow the size of the agency, or merge with another, to a point where additional infrastructure is affordable. Another could be an internal, and possible external, review of the current overhead usage and requirements to provide ammunition for the request to change the policies of their funding sources. A quality consultant, or team of consultants could conduct reviews and make recommendations to the boards to allow more overhead spending.

And there should be a review of the way donors and charity watchdogs, like Charity Navigator, depend too much on ratios of donations being spent on programs versus administrative costs. If they want their money to be effective, they need to shift away from costs and toward outcomes.

Senior management and boards of all nonprofit agencies need to re-examine overhead spending and make adjustments accordingly. Even if it means fewer contributions, hopefully in the short run, because they are only hurting their mission. According to this study that without spending on the right tools, the right personnel, their training, and the time to do everything required… the staff will not be able to achieve the desired outcomes.

Which is why they’re doing this is in the first place.

We offer case management, attendance, financial management, manufacturing management, service billing, and client payroll management software systems. Vertex Systems also provides an enterprise solution that connects all the modules together to improve teamwork, increase accuracy, and reduce steps to save time and save money for agencies that serve those with disabilities.

Visit Vertex Systems software for more information about our state-of-the-art solutions for agencies that serve persons with disabilities and barriers to employment.