Q: How does ACRE help nonprofits reduce current operating costs?

A. ACRE’s Operating Cost Analysis is a free assessment of a 501(c)’s current cost structure that:

• • • • Reveals how spending on products, services, and administrative activities compares to similar nonprofits; 
      • Identifies where spending is abnormally high; and 
      • Recommends actions for how the nonprofit can improve cost-efficiency in those areas. 

Q: How detailed is the Operating Cost Analysis?

A. As detailed as the nonprofit wants!  ACRE offers a Basic Analysis that relies only on publicly available spending data from 990 tax forms.  While limited in scope, the Basic Analysis can provide helpful insights when comparing a nonprofit’s costs in those categories with hundreds of other nonprofits of similar size and purpose. ACRE’s Comprehensive Analysis entails collecting additional spending information from the nonprofit, beyond what’s reported on the 990.  The more information provided by the nonprofit, the more detailed and beneficial the analysis will be.

Q: How much does it cost to have ACRE conduct an Operating Cost Analysis?

A. The analysis is free to any charitable organization or association!  Free for the Basic Analysis and free for a Comprehensive Analysis.  And with either analysis, nonprofits receive a final report showing where the biggest opportunities for cost savings exist and recommendations for remedial action.  At the nonprofit’s discretion, ACRE may subsequently be retained to help implement no-cost or low-cost solutions to reduce excess spending in areas identified by the nonprofit. 

Q: What kind of financial information does ACRE need to conduct a Comprehensive Analysis?

A: ACRE is essentially looking for financial reports or other data sources that show as much detail as possible about spending over the past year. We can work with whatever records you have on hand, so we don’t ask clients to generate new reports.  But the more data we can get, the more thorough the Comprehensive Analysis will be. 

Examples of reports we can use are one or more of an accounts payable report, income/P&L statement, chart of accounts, or a general ledger.  For users of QuickBooks, standard reports that would be helpful are the P&L, statement of cash flows, transaction detail report, transaction list by vendor, and vendor contact list.  Lastly, a copy of the current year budget and any policies or written procedures related to spending would help ACRE conduct the most thorough review.

Q: How long does it take ACRE to conduct an Operating Cost Analysis?

A: The timeline depends on the scope of the analysis.  A Basic Analysis using only 990 spending data for benchmarking will typically be completed within two business days.  A Comprehensive Analysis utilizing spending data provided by the nonprofit should be completed within three weeks after ACRE receives that additional information. 

Q: How much interaction with nonprofit staff does ACRE need to conduct an operating cost analysis?

A: As little or as much interaction as the nonprofit desires.  Even the Comprehensive Operating Cost Analysis is 99% less intrusive on your operations than a standard financial audit. ACRE doesn’t require granular details on every expense. After receiving the initial financial reports, ACRE will zero in on specific areas or processes where the most promising cost-saving opportunities appear to exist.  We will likely require additional information about those specific areas of expenditure to fully understand and quantify the opportunities. That is the only interaction with staff that is essential to the process.

Q: Does ACRE need to be onsite to conduct a Comprehensive Operating Cost Analysis?

A: No. To save costs (which is what we do!) the analysis is conducted virtually.

Q: Does ACRE offer other consulting services to help nonprofits with projects like improving individual processes or minimizing costs of a specific program or service without jeopardizing its value and effectiveness?  

A: Absolutely! ACRE offers free procurement services to help nonprofits take advantage of preferred pricing and other cost saving opportunities.  We also contract with charitable organizations, associations, and association management companies on a variety of short and long-term projects to improve operating efficiencies, increase productivity, develop and implement cost-effective policies and processes, and reduce unnecessary costs. Our expertise in nonprofit management uniquely positions ACRE to offer solutions tailored directly for 501(c)s. 

Q: What Do Clients Say About The Services Provided By ACRE? 

A: Here’s what one client said: “Craig (ACRE President Craig Price) has consistently exceeded our expectations, and we couldn’t recommend him more highly. We rely heavily on his dependability, integrity, and vast experience.”