Featured Client

National Alopecia Areata Foundation

Background

In May 2023, the National Alopecia Areata Foundation (NAAF) reached out to Outfitters4 (O4) following a referral from a peer organization. NAAF, though national in scope, was a relatively small nonprofit with a dedicated team of 10 staff and an annual budget of just under $3 million. As the leading patient advocacy organization for individuals living with alopecia areata—an autoimmune disease that causes unpredictable hair loss and significant psychosocial impact—NAAF recognized a need to modernize its internal systems and infrastructure to support its mission more effectively.

At the time of engagement, NAAF was undergoing a significant leadership transition. A relatively new CEO and COO were in place, and the organization’s long-time Chief Administrative Officer—who had been with NAAF for three decades—was preparing to retire. Leadership saw this moment as an opportunity to evaluate what was working operationally, determine what should remain in-house, and identify functions that could be more efficiently outsourced.

Seeking to work towards their strategic goal of organizational and operational excellence, among their key concerns were outdated systems, inadequate software, and inefficient processes. NAAF was still physically writing checks—an increasing burden now that they had a workforce distributed across the country—and they were relying on QuickBooks, which lacks fund accounting capabilities. They faced challenges with payroll, particularly as they began hiring employees in multiple states, and needed support with HR functions like recruitment and performance evaluations.

O4's Proposal and Approach

O4 began by thoroughly assessing NAAF’s needs and recommended transitioning from QuickBooks to Araize FastFund Online, a platform built specifically for nonprofit fund accounting. This transition went live as of January 1, 2024. Alongside the new software, O4 worked closely with NAAF to develop a streamlined chart of accounts designed to track both program areas and funding sources, allowing for clearer reporting and better decision-making.

In addition to accounting software implementation, O4 introduced systems and processes that improved nearly every aspect of NAAF’s financial operations:

• Donation Processing: Provided ongoing support to ensure timely and accurate entry and acknowledgement of donations.

• Financial Management: Generated customized monthly financial reports, reconciled bank and credit card accounts, processed standard and non-standard journal entries, and prepared year-end filings (1099s and 1096s).

• Bill Pay and Expense Management: Set up Bill.com and Divvy to streamline accounts payable, credit card reconciliation, and employee reimbursements.

• Payroll Support: Transitioned NAAF to Gusto, an efficient, user-friendly payroll platform, and provided ongoing payroll submission and compliance support.

• Audit Preparation: O4 manages the relationship with their auditor, and provides clear, timely responses to auditors. O4 also attends NAAF’s audit and finance committee meetings to offer insights and answer board questions directly.

The Results

Building Capacity through Partnership

NAAF now has reliable, timely financial statements to present to its board, and responses to auditors have become smoother and more efficient. Month-end processes—such as bank reconciliations, financial reporting, and donation entry—are now streamlined, saving significant staff time.

Where once the organization relied on a CAO and a part-time bookkeeper, it now benefits from an expanded virtual team with deep nonprofit expertise. O4 offers “one-stop shopping” for finance, HR, and operational guidance, giving NAAF’s leadership a trusted starting point for navigating complex questions and decisions.

With 11 staff and now raising over $4 million, NAAF continues to operate as a small but mighty organization. Thanks to its partnership with O4, it’s better positioned than ever to serve the alopecia areata community through advocacy, education, and research—backed by modern systems and operational excellence.

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