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As a nonprofit, your mission is your priority.&nbsp; With extensive experience in serving nonprofits, we understand your financial needs.&nbsp; Whether you are an international NGO, healthcare, higher education or research institution, cultural organization, human service, association or foundation, our tailored solutions will help streamline your operations and engage donors effectively.&nbsp; Citi Commercial Bank has extensive experience in supporting nonprofits globally with expert financial guidance, so you can focus on your mission.&nbsp;

Nonprofits are increasingly concerned that the uncertain economic environment  in many countries now and in the near future, will impact their fundraising efforts.

Navigating economic uncertainty: how banks can help charities improve donation efficiency 

Commercial Banking for Nonprofit Companies

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Nonprofits are increasingly concerned that the uncertain economic environment in many countries now and in the near future, will impact their fundraising efforts. The threat of recession or economic uncertainty at any time in general could spell trouble for nonprofits. Consumers may already be reducing their charitable donations in light of the macroeconomic backdrop as mentioned in our recent report1. If people fear they might lose their job, their spending habits – including donations – will change. Charities are already reporting higher levels of demand1. Nonprofits could face a squeeze on their revenues just as their work becomes more important than ever. Many nonprofits are going to have to double down on revenue generation and efforts to optimize efficiency if they are going to be able to meet growing demand for their support. How nonprofits can respond While the outlook for nonprofits certainly appears difficult, their experience of overcoming unprecedented challenges during COVID-19 should stand them in good stead. This dynamism will be essential in any forthcoming economic downturn. While recurring donations remain critical, nonprofits must also make donating as convenient and simple as possible as people increasingly make quick decisions to donate because of content they have read or viewed online. Nonprofits need to leverage such opportunities with simple donation tools that minimize the amount of financial and other information consumers must input and – ideally – require them to impart no information at all. Many nonprofits made significant efforts to streamline their processes and drive efficiencies in order to lower costs during the pandemic. But additional opportunities remain. Streamlining and improving collection efficiency Citi offers a number of solutions that give nonprofits an efficient and secure way to receive donations, helping to lower costs and improve donor confidence. Available in the US, Citi Present and Pay is an omni-channel electronic bill presentment and payment platform that enables clients to collect from donors in a wide variety of ways. Nonprofits can receive one-time electronic payments via ACH and credit card, online, on the phone or via smartphone. Crucially, the payment page on Present and Pay is branded with the organization’s logo and other details and can be linked directly from the organization’s front-end website or mobile site, making donations straightforward. Nonprofits can also embed the platform’s capabilities into its existing website or mobile app using a series of APIs. Importantly, the solution can be deployed quickly once an organization has completed the necessary documentation. A differentiated solution “Spring by CitiSM” provides nonprofit clients with a single solution to accept donations online via card, alternative payment methods, such as digital wallets, and bank transfers such as instant payments and subscription-ready ACH direct debits. The solution enables a seamless payment acceptance experience whether on a browser, smartphone or within an app, helping to ensure you’re maximizing your donation collections. It can also fully integrate into clients’ back-end systems to facilitate automated reconciliation, streamlined processes and granular reporting. Spring by Citi provides nonprofit clients with a safe, secure and seamless way to collect donations. For nonprofits collecting from overseas, Spring by Citi can offer embedded FX to mitigate currency risk. Citi offers Spring by Citi in Australia, Brazil, Canada, Germany, Hong Kong, Ireland, Mexico, Netherlands, Singapore and the UK. It will launch in the US for CCB clients shortly and in four other countries following in the near future. In Conclusion The coming months will no doubt be challenging for many nonprofits in the US and around the world as the economic outlook remains challenging for nonprofits. But by communicating effectively with their donor base, innovating their campaigning efforts and focusing on demonstrating their ability to deliver results, nonprofits can continue to thrive. A key part of these efforts must be initiatives to concentrate resources on frontline activity, lower administration costs and improve visibility and control across the organization. Finding more convenient and effective ways to collect donations is also critical. Regardless of whether the threat of recession becomes a reality, nonprofits should look to their banks for insights and support in helping them achieve their strategic goals. For more information about how Citi Commercial Bank’s Nonprofit Team can assist you and your team, please contact us below. 1 https://www.citigroup.com/global/insights/citigps/philanthropy-and-the-global-economy-v2

At this point, an enterprise resource planning (ERP) system could be the answer. Widely used throughout the nonprofit and corporate world, an ERP system is a software solution that connects functions across the organization, including finance, accounts payables and receivables, sales, procurement, and human resources; it can streamline and automate many tasks. An ERP can be connected to your bank via host-to-host and/or direct integration, facilitating the two-way exchange of data, so you can receive bank statements and send payment files securely. Ultimately, using an ERP system can improve donor visibility by allowing you to track information and donation history (and tag donors for follow-up campaigns). It can also enhance transparency, which can build donor trust and confidence. Moreover, ERP systems are scalable, ensuring the organization does not have to implement multiple successive systems as you grow and your needs evolve. Benefits of an ERP system Implementing an ERP system, and integrating it with your bank, can deliver the following benefits: Increased operational efficiency: You can see account balances and transactions within the system so there is no need to login to multiple bank portals. Time spent on manual spreadsheet data entry can be reallocated to other tasks, such as fundraising and program delivery (or staff costs can be reduced). An ERP also provides an opportunity to rationalize bank accounts and relationships, review and streamline processes, and centralize treasury functions. Enhanced working capital: With improved visibility of your inflows and outflows, you can ensure you have enough cash on hand for day-to-day activities. Improved risk management: Improved visibility of cash, FX and other positions allows nonprofits to standardize processes and enhance risk management as two-way data flows between an ERP system and the bank are securely encrypted. Better informed decision-making: Real-time data can be used to track the performance of different programs, identify areas for cost reduction, and help make strategic decisions about the future of the organization. An ERP system also integrates various departments and functions across a nonprofit, creating the potential to improve communication and teamwork. Integrating with your bank Nonprofits typically connect their ERP system to their banks using host-to-host connectivity, which takes between four and six weeks. There are two encryption options: Secure File Transfer Protocol (SFTP): Both parties exchange encryption keys, which then perform a digital handshake to establish secure channels to send and receive data. This option is used by the vast majority of nonprofits. Pretty Good Privacy (PGP): In addition to the SFTP encryption described above, PGP adds file level encryption. Working with the right partner An ERP is a big investment and choosing a system can seem daunting. Your system must provide all the functionality required by your organization while aligning with your budget and IT and training resources. While a customized solution can be more expensive, you may need to accommodate online, cash or check donations; you might also have international bank accounts to integrate, or require the ability to make FX payments overseas. You must also decide whether to implement a cloud or an on-premises ERP (the former is usually more cost effective, billed via a subscription and requires fewer IT resources for implementation and maintenance). Fortunately, your bank can help you navigate your ERP journey, working with your external IT partner to ensure you choose an ERP and streamline your set-up, even if you have limited internal resources. By working with the right bank, your ERP system can start delivering benefits shortly thereafter. Citi Commercial Bank has a dedicated Nonprofit team covering both treasury and relationship management. Our bankers have deep industry expertise and understand your challenges and ambitions: we have integrated with almost every type of ERP system for every type of client . Our experienced technical team and ERP integration technology helps to ensure that the process proceeds smoothly, on time and on budget. By adding our payments and collections capability to your ERP, we can automate time-consuming processes such as reconciliation. With enhanced visibility of your cash, we can improve risk management and help you concentrate liquidity so that surplus cash can be invested for an optimal return. Citi’s connectivity solutions such as CitiConnect and CitiDirect also help make financial reporting straightforward , helping you comply with regulations on donor privacy and increasing donor confidence, which can boost donations.

<img style="display: block; margin-left: auto; margin-right: auto;" src="/rcs/v1/media/citigpa/akpublic/storage/retrieveMediaFile/6553ac3a67b9d81ad8810375.png" />
At this point, an enterprise resource planning (ERP) system could be the answer. Widely used throughout the nonprofit and corporate world, an ERP system is a software solution that connects functions across the organization, including finance, accounts payables and receivables, sales, procurement, and human resources; it can streamline and automate many tasks. An ERP can be connected to your bank via host-to-host and/or direct integration, facilitating the two-way exchange of data, so you can receive bank statements and send payment files securely.
Ultimately, using an ERP system can improve donor visibility&nbsp; by allowing you to track information and donation history (and tag donors for follow-up campaigns). It can also enhance transparency, which can build donor trust and confidence. Moreover, ERP systems are scalable, ensuring the organization does not have to implement multiple successive systems as you grow and your needs evolve.
<h4>Benefits of an ERP system</h4>
Implementing an ERP system, and integrating it with your bank, can deliver the following benefits:
Increased operational efficiency: You can see account balances and transactions within the system so there is no need to login to multiple bank portals. Time spent on manual spreadsheet data entry can be reallocated to other tasks, such as fundraising and program delivery (or staff costs can be reduced). An ERP also provides an opportunity to rationalize bank accounts and relationships, review and streamline processes, and centralize treasury functions.
Enhanced working capital: With improved visibility of your inflows and outflows, you can ensure you have enough cash on hand for day-to-day activities.
Improved risk management: Improved visibility of cash, FX and other positions allows nonprofits to standardize processes and enhance risk management as two-way data flows between an ERP system and the bank are securely encrypted.
Better informed decision-making: Real-time data can be used to track the performance of different programs, identify areas for cost reduction, and help make strategic decisions about the future of the organization. An ERP system also integrates various departments and functions across a nonprofit, creating the potential to improve&nbsp; communication and teamwork.
<h4>Integrating with your bank</h4>
Nonprofits typically connect their ERP system to their banks using host-to-host connectivity, which takes between four and six weeks. There are two encryption options:
<ul>
<li>Secure File Transfer Protocol (SFTP): Both parties exchange encryption keys, which then perform a digital handshake to establish secure channels to send and receive data. This option is used by the vast majority of nonprofits.</li>
<li>Pretty Good Privacy (PGP): In addition to the SFTP encryption described above, PGP adds file level encryption.</li>
</ul>
<h4>Working with the right partner</h4>
An ERP is a big investment and choosing a system can seem daunting. Your system must provide all the functionality required by your organization while aligning with your budget and IT and training resources. While a customized solution can be more expensive, you may need to accommodate online, cash or check donations; you might also have international bank accounts to integrate, or require the ability to make FX payments overseas. You must also decide whether to implement a cloud or an on-premises ERP (the former is usually more cost effective, billed via a subscription and requires fewer IT resources for implementation and maintenance).
Fortunately, your bank can help you navigate your ERP journey, working with your external IT partner to ensure you choose an&nbsp; ERP and streamline your set-up, even if you have limited internal resources. By working with the right bank, your ERP system can start delivering benefits shortly thereafter.
Citi Commercial Bank has a dedicated Nonprofit team covering both treasury and relationship management. Our bankers have deep industry expertise and understand your challenges and ambitions: we have integrated with almost every type of ERP system for every type of client . Our experienced technical team and ERP integration technology helps to ensure that the process proceeds smoothly, on time and on budget.
By adding our payments and collections capability to your ERP, we can automate time-consuming processes such as reconciliation. With enhanced visibility of your cash, we can improve risk management and help you concentrate liquidity so that surplus cash can be invested for an optimal return. Citi&rsquo;s connectivity solutions such as CitiConnect and CitiDirect also help make financial reporting straightforward , helping you comply with regulations on donor privacy and increasing donor confidence, which can boost donations.
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What, when, why and how?

Nonprofit organizations keep a close eye on costs to ensure that their funding helps to achieve their social, environmental or other objectives. But once nonprofits reach a certain size, managing collections and spending is challenging; manual processes and spreadsheets become inefficient and costly, and could create potential risks.

Nonprofits and ERP systems:

Citi Commercial Bank and BDO held the annual 2023 Nonprofit Summit this year at Citi headquarters in New York City.  Clients and Industry leaders gathered to share ideas, best practices and network within their industry.

2023 Citi Commercial Bank Nonprofit Summit

Citi is proud to be able to facilitate this next chapter for City Harvest, which positions the organization to continue its critical
work helping millions of New Yorkers.

City Harvest also educates residents on cooking healthy meals, storing food and shopping on a budget.
Furthermore, City Harvest provides supermarkets with training, technical support, and even infrastructure, such as display refrigerators for perishable foods. In 2022, the organization worked with the NYC Department of Small Business Services and Citi Community Development to create training materials for 80 small food retail partnerships. Through its partnership, Citi Community Development has provided $1 million to help with operating costs of the organization&rsquo;s work in local supermarkets.
The Challenge:
City Harvest was a long-time prospect of Citi Commercial Bank (CCB), until the Nonprofit Team provided a full banking and credit solution for their financing needs. Prior to the pandemic, CCB began discussing a financing opportunity for the renovation of City Harvest&rsquo;s new Food Rescue Center in Sunset Park, Brooklyn. The Citi team worked closely with City Harvest while the organization built up the necessary collateral even amid the challenging pandemic environment to secure the loan. Citi ultimately won the business in late 2021, due to the continued support of City Harvest and collaborative effort between teams to provide a creative solution.
The Solution:
Citi closed on a Term Loan for the completion of the new warehouse. City Harvest recently guided the CCB Nonprofit team on a tour of the building for a better understanding of how the space is being utilized.&nbsp; The Food Rescue Center is close to a full city block and is intelligently, beautifully and sustainably designed. Within the building is a large event space, known as The Venue at City Harvest. Proceeds from space will support City Harvest&rsquo;s work of rescuing and delivering food for free to New Yorkers in need.
Citi is proud to be able to facilitate this next chapter for City Harvest, which positions the organization to continue its critical work helping millions of New Yorkers.
&nbsp;
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City Harvest, founded in 1982, is New York City&rsquo;s first and largest food rescue organization, helping to feed millions of New Yorkers who are struggling to put meals on their tables. Every year, the organization rescues vast amounts of food that would have otherwise gone to waste and delivers it for free to hundreds of food pantries, soup kitchens and other local partners across New York.

Helping City Harvest’s mission to feed hungry New Yorkers

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Commercial Banking for Nonprofit Companies

Helping City Harvest’s mission to feed hungry New Yorkers

2023 Citi Commercial Bank Nonprofit Summit

Nonprofits and ERP systems:

Navigating economic uncertainty: how banks can help charities improve donation efficiency

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