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NEW YORK UNIVERSITY ROBERT F. WAGNER GRADUATE
  P11.2142 FINANCIAL MANAGEMENT FOR NONPROFIT AND
                  NGO ORGA...
Final Exam
   • The take-home final exam will consist of a few short answer questions and an
       analysis of nonprofit ...
Class 5 - Financial Statement Analysis and the 990 (part 2)
Continued review of basic nonprofit financial statements and G...
Class 10 - Budgeting
The class reviews the annual budget process, cost allocation and capital budgeting.

Reading:        ...
Project Outline

Group Project
The group project consists of an in-depth analysis of a nonprofit or NGO. Students
interest...
Distribution & Class Feedback
Your memo is due by the 10th class. I will post your report and spreadsheet in
Blackboard. Y...
Guidelines for Homework and Final Examination

In the course I try to establish a work-like environment. Consequently all ...
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NGO financial Management Course

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NGO financial Management Course

  1. 1. NEW YORK UNIVERSITY ROBERT F. WAGNER GRADUATE P11.2142 FINANCIAL MANAGEMENT FOR NONPROFIT AND NGO ORGANIZATIONS Instructor: David MacDougall dmd2028@nyu.edu Fall 2008 DESCRIPTION This course addresses the practical challenges of managing financial risk and reporting in nonprofit and nongovernmental organizations. Topics include all major areas of financial management with a special focus on problem solving and decision making. Class exercises strengthen the student’s ability to assess financial issues and to concisely communicate risks and opportunities to stakeholders. PREREQUISITES: Coursework: P11.1021 Technology: The course requires effective use of Word and Excel (or similar professional software). I expect that students are familiar with Excel formulas (absolute and relative) and functions. I strongly recommend that students who do not already have office software purchase the suite of Microsoft office products at the NYU computer store where they are available at a deeply discounted price. Required Texts Zietlow, Hankin, Seidner, Financial Management for Nonprofit Organization, John Wiley & Sons Inc, New York 2007 Optional Texts Steven A. Finkler, Financial Management for Public, Health, and Not-for-Profit Organizations, Prentice Hall, Second Edition 2005 (used in P11.1021 core finance course). Dropkin and Hayden, The Cash Flow Management Book for Nonprofits Jossey Bass, 2001 Businessweek - http://www.businessweek.com/ The Economist – A wonderful news magazine with a focus on economics and finance. https://www.economistsubscriptions.com/searchstudent/us/ Grading • 30% group project • 35% of your grade will be based on the homework assignments. • 35% on the final exam. Group Project The group project consists of an in-depth analysis of a nonprofit or NGO. The ultimate product of the analysis will be a memo (4,000 to 5,000 words) and a 30-minute class presentation addressing financial challenges and policies. See the attached sheet describing key elements of the project. Page 1 of 7 P11.2142 Syllabus Fall 2008.doc
  2. 2. Final Exam • The take-home final exam will consist of a few short answer questions and an analysis of nonprofit facing significant challenges. • Students will be required to demonstrate a thorough mastery of financial terms. COURSE OUTLINE AND TOPICS Class 1 – Introduction Introduction to the course and instructor. The class includes a discussion of standard office software and professional communication. Assignment: Student Survey - submit by Sunday Spreadsheet: Exercise 1 (Basic formatting, formulae and functions) Class 2 – Overview of nonprofit organizations and non-governmental organizations With over one million nonprofits in the US, students need to understand the regulatory landscape and legal structures. The class deals with the nature of nonprofit and non- governmental organizations. It describes the process for creating a nonprofit and the significance of 501(c)(3) status. The class will include a discussion of crucial role of the board. Reading: Chapter 4, 4A, 4B Optional Reading: Claire Gaudiani Chapter 1 Spreadsheet: Projecting financial performance and communicating implications Class 3 – Role of the CFO (date may change depending on availability of speaker) A chief financial officer with international and domestic expertise will discuss the responsibilities and challenges of working effectively as a CFO. Reading: Chapter 5, 5A The Nonprofit CFO – Bridgestar (on Blackboard) Assignment None Class 4 - Financial Statement Analysis and the 990 (part 1) A review of basic nonprofit financial statements and GAAP. Issues include US and international accounting standards and the Federal form 990 Reading Chapter 6, 7, 7A, 7B Articles WSJ on Change in GAAP WSJ on International vs. Domestic accounting Standards Review Women’s World Banking 2006 Audit Baspana 2004 Audit Optional Reading: Finkler, Chapters 10 and 12 Assignment: Balance Sheet Ratios Page 2 of 7 P11.2142 Syllabus Fall 2008.doc
  3. 3. Class 5 - Financial Statement Analysis and the 990 (part 2) Continued review of basic nonprofit financial statements and GAAP. The class will include a discussion of benchmarking and ratio analysis. Project Submit HARD COPY of the audited financials and a brief memo describing your chosen organizations, why you chose it and the sources of information you have identified. Assignment: Statement of Activity Ratios Class 6 - Liquidity Maintaining adequate liquidity is one of the key responsibilities of a financial manager. This class addresses the importance of liquidity management through the cash flow budget. It will also include a discussion of the challenges of determining liquidity from audited financial statements. Reading: Chapter 2, 11 Optional Reading: Finkler 6 Assignment: Create cash flow budget based on Exhibit 6.4 in Dropkin and Hayden (See Blackboard) Class 7 - Debt Borrowing can create opportunities to improve efficiency and effectiveness. It can also place an institution in financial jeopardy. The class will review the basics of borrowing and associated risks. Reading: Chapter 10 Assignment: Debt Burden Class 8 – Investments and Endowment Management Many nonprofit institutions benefit from endowments. This class will outline the issues including endowment spending policies, investments and projecting endowment income. Reading: Chapter 12 Assignment: Expansion of church operations Class 9 - Fund Raising With the increasing number of nonprofits in the US, competition for funding has grown rapidly. Virtually everyone in a nonprofit, especially the CFO, must understand the basics of the fundraising effort. The class will provide an overview of fund raising for nonprofit organizations in the US. Topics include: annual campaign, capital campaign, telemarketing, direct mail, special events, planned giving, foundations grant making and the vital role of board members. Reading: Seltzer 6, 15 Assignment Review you projects fund raising strategy Page 3 of 7 P11.2142 Syllabus Fall 2008.doc
  4. 4. Class 10 - Budgeting The class reviews the annual budget process, cost allocation and capital budgeting. Reading: Chapter 8 , 9 Assignment: TBA Topic 11 - International Finance and Exchange Rates An overview of risk management including fixed and floating exchange rates and ways to manage foreign exchange risk. A guest lecturer will discuss foreign exchange hedging techniques. Reading: TBA Assignment: TBA Class 12- Internal Control & External control, Sarbanes Oxley The class will track the causes of the implementation of the Sarbanes-Oxley law. We will discuss of Sarbanes Oxley and how it might affect nonprofit organizations. Reading: Chapter 14 Reading on Enron Assignment: None Class 13 & 14 - Group Presentations Review of Key topics Groups will provide 30-minute presentations on their organizations. Page 4 of 7 P11.2142 Syllabus Fall 2008.doc
  5. 5. Project Outline Group Project The group project consists of an in-depth analysis of a nonprofit or NGO. Students interested in international issues should work with the instructor to identify an appropriate international institution. The ultimate product of the analysis will be a memo and a 30-minute class presentation discussing the organization, its financial challenges and policies. Significant milestones in the group project will be: • Create groups of 3 by the 3rd class. • By the fifth class groups submit a brief memo describing their selected organization along with a copy of the most recent audited financial statements or 990. Students must be careful to choose an organization that will provide adequate information. • In the next week groups schedule a follow-up 1-hour meeting with me for a preliminary discussion of the organization. • Students will submit the final report by the 10th class and will prepare a group PowerPoint presentation in the last classes of the semester. Please feel free to ask me about the project. I will make the answers available to all students on Blackboard Memo (5,000 words maximum) The memo should provide enough information to understand the organization, its mission and its financial challenges. Topics should include: historic and current financial performance, budgeted and projected financial performance, mission statistics and effectiveness. The memo should focus on your analysis and conclusions While your memo will surely include descriptive information, your conclusions are the key result of the project. As a part of your analysis remember to review the organizations 990. Familiarize yourself with the 990 by completing the tutorial. “How to Read the 990 Form” http://www.npccny.org/Form_990/990.htm Spreadsheet Create a spreadsheet that analyzes the financial performance of the organization along with its mission statistics. The spreadsheet should have 3 to 5 years of history. You may use as many ratios as you wish. However you should use no more than 5 ratios as keys to understanding the dynamics of the organization. You should identify appropriate benchmarks for your ratios. PowerPoint No more than 15 PowerPoint slides should accompany your presentation. The slides should highlight your opinions and conclusions. Students must show good communication skills in the class presentation: speak clearly, be concise and stay within the time limit. Students should practice the presentation before doing it in class. Page 5 of 7 P11.2142 Syllabus Fall 2008.doc
  6. 6. Distribution & Class Feedback Your memo is due by the 10th class. I will post your report and spreadsheet in Blackboard. Your fellow students will be required to read the documents in preparation for your presentation. I urge all students to participate in the discussion that will follow the presentations in class. Page 6 of 7 P11.2142 Syllabus Fall 2008.doc
  7. 7. Guidelines for Homework and Final Examination In the course I try to establish a work-like environment. Consequently all written assignments must be in memo format providing concise conclusions and practical solutions. Students must submit all Homeworks by e-mail ON THE TUESDAY FOLLOWING THE THURSDAY CLASS. Students must follow the following conventions when submitting homework: • File Names - last name and then a concise description of the homework. For example: Jackson – Homework 1.xls • Written work o Submitted in a form easily imported to Word 2003 o Written work should: Focus on conclusions. A simple recitation of facts is not useful Be single-spaced and submitted in a memo style. Use Times New-Roman 12 font Include page numbers and your name on every page in a footer Do not exceed the word count provided with each assignment. Longer is not better. Use graphs and tables. • Excel o Submitted in a form easily imported to Excel 2003 o Each page must print neatly on 8.5x11 paper. Include your name, file name and page number on each page o All numbers must be properly formatted. Improperly formatted spreadsheets will be returned to students and marked as late. • PowerPoint presentations o Submitted in a form easily imported to PowerPoint 2003 o Presentations should be concise with appropriate use of graphs and tables. Page 7 of 7 P11.2142 Syllabus Fall 2008.doc

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