Standard Change: Purchase and implement a ProgCode accounting software system

[stephenscapelliti]

Description

This is a proposal to purchase and implement an accounting software system for Progressive Coders Network and for Progressive Coders Network II.

Problem

ProgCode has not established formal books of account. Donations to ProgCode have not exceeded the threshhold level of $50,000 necessary for reporting on a Form 990 tax return. However, ProgCode has established a 501(c)(3) entity (Progressive Coders Network II), pursuant to Issue #250, which requires the transfer of certain assets from the c4 entity to the c3 entity, and it is advisable that the asset transfer be reflected in books of account.

Benefit

Establishing formal books of account will enable both ProgCode c3 and c4 entities to anticipate increased revenue levels. In anticipation of the goals listed in Issue #250, increased revenue, staffing, and other revenue-based activities will be reflected in books of account for improved operations, transparency to the community, and accountability to the community and to government agencies.

Expenditure Analysis

This proposed solution would require an expenditure for an accounting software program.
Criteria:

1. Ability to produce financial statements, specifically balance sheet and income statement
2. Ability to track/record transactions, i.e. individual donations and expenses
3. Accounting software that would easily transition to tax software (i.e. compatible with TurboTax)
4. Software that has the ability to meet the organization’s needs at it grows (Payroll)
5. Possible multiple sign-ons / multiple access IDs

Based on the above-criteria, Quickbooks recommends Quickbooks Online Plus or Quickbooks Desktop Premier for nonprofit organizations. Both versions are able to produce basic reports to include balance sheet and income statement. The prices listed below do not include Payroll.

Quickbooks Online Plus

• $70/monthly or $750 annually
• Online - access from anywhere
• Multiple users / multiple logins

Quickbooks Desktop Premier - Nonprofit Edition

• $499.95 purchase
• Desktop version
• One user - one login or one access ID

Significantly reduced pricing can be obtained through the organization Tech Soup (website: techsoup.com). If Progressive Coders Network II can obtain a membership with Tech Soup, at quick glance, the software would only be $50 annually. There are other great benefits to joining as well.

2022.04.20 UPDATE - The ProgCode TechSoup account has been activated, as previously announced in the Slack workspace. The current annual subscription fee for QuickBooks Online Plus for 5 Users is $75.00. Staff confirmed today with TechSoup that the discounted product is available to ProgCode.

The requirements of Issues #198 and #236 are applicable, as follows:

Proposals seeking consent for implementation of budget requests and/or change process should not contradict ProgCode core objective and should pass this four-pronged test when considered by operations:

1. Is this proposal non-partisan in nature? Yes
2. Is this proposal aligned with ProgCode's mission of removing the influence of big money in politics? Yes
3. Does this proposal seek to empower the grassroots by supporting the creation of open source tech? Yes
4. Is this proposal sponsored or funded by an outside organization? If yes, the source of the funding must be disclosed. No

Plan

• [x] Community discussion of all elements of this proposal at Community Operations Meetings.
• [x] Vote for consent to proceed to investigate the need purchase and implement a software accounting system, following community discussion.
• [x] Vote for consent to proceed for the standard change to purchase and implement the software program as suggested and recommended through community discussion.
• [x] Notify the community of the vote taken by posting a #team-announcement and sharing the video URL in #operations immediately following the vote for consent to proceed, in accordance with ProgCode procedures, allowing additional votes & feedback during the standard 72-hour waiting period before ratifying the vote.
• [x] Vote for consent to implement the standard change to purchase purchase and implement a software accounting system.
• [x] If vote for consent to implement passes, purchase and implement a software accounting system in accordance with the vote.
• [x] Grant login access to the accounting system to ProgCode Staff members and others assisting staff, on an as-needed basis.
• [x] Staff will investigate non-profit and other discounts which may be available to ProgCode and make application as needed to qualify.
• [ ] Operations Staff and the ProgCode community will create a standard process for use, maintenance, and security of the ProgCode software accounting system.
• [ ] Retain this issue as an open issue for possible amendment a later date, for continuing the account, revising features, or cancelling the account.

Decision Making

Consent to implement a standard change per the Change Process

Optional Information

Reference link(s)

• Quickbooks Desktop Premier - Nonprofit Edition
• Quickbooks Online Plus
• TechSoup Quickbooks discount pricing
• Change Process
• Example of a completed Form 990 Tax Return

Community Discussion History

• 02.26.2017 - Issue 81 "Funding Framework"
• 05.15.2017 - Issue 198 "Four Pronged Test for Mission Alignment"
• 06.18.2018 - Issue 236 "Standard Change - Budget Expense Requests"
• 11.10.2018 - Issue #250 "Major Change: Create a ProgCode 501(c)(3) entity "

[TheRealAlexV]

So, I think the first thing we need to do is designate someone as the NPO controller/accountant. Since they'll be using these tools the most, it would be VERY wise to get their opinion on the usability of these tools since it's a bit different for everyone.

Quickbooks is pretty much the defacto standard when it comes to accounting software, but does have some annoying limits. If we can get our Techsoup application approved, I think quickbooks is a good choice. The online version is the most flexible as it allow you to integrate with bank accounts, ect, but I don't think techsoup covers it. The single user license is also a bit of an issue, since you can legally only install it on one machine. This makes it hard to allow more than one person to use it. It's possible to share a single user instance, but would require some semi-expensive tech magic to make that happen.

I highly suggest looking at Xero. They have features geared towards non-profits and generally also offer an NPO discount. I think they may be a better for us than quickbooks. https://www.xero.com/us/why-xero/your-business/non-profit-accounting/

My second suggestion is to look at WaveApps. It's free for most accounting functions. They charge for doing things like payroll, or include a modest fee if you use them as a payment processor. https://www.waveapps.com/

Also, http://gnucash.org/ is an opensource software for accounting if we wanted to keep with the spirit of opensource software, however it's not as intuitive to use for NPO donation tracking.

[stephenscapelliti]

These are great suggestions, @TheRealAlexV, and we should include Xero, WaveApps, and GnuCash in the community discussion. The above-recommendations were made by an accountant I know who works in the non-profit realm and has struggled with less-conventional formats and the difficulty of converting records to another platform. This is being treated as a community proposal, rather than by an individual member, so it should be amended and revised as community discussion on the issue progresses, long before any vote is taken.

I agree with you about the necessity of designating someone as the NPO controller/accountant and purposely omitted that from this issue so that it can be a separate consideration and proposal, along with establishing protocols for use. It would be wonderful if someone with the requisite skills could be found within the ProgCode community.