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Are we sinking? Financial Leadership in Turbulent Times   Steve Zimmerman Spectrum Nonprofit Services
The face behind the voice . . . .
Our Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
 
Financial Leadership ,[object Object],[object Object]
Mission
Mission
Mission
 
Mission $
Who is involved?
Who is involved?
 
 
Budget to actual report Balance Sheet?
 
 
How do I read these things?
What monthly accounting reports are you getting?
2 Key Financial Statements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Snapshot of the organization at a specific date
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
3 Parts to a  Balance Sheet Assets Liabilities Net Assets Things you own Things you owe Your net worth Listed in order of liquidity.  How quickly can I get my hands on the cash? Current liabilities represent those liabilities that are payable in the next year. ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
I can read the financial statements, but how do I know if I have enough cash in the bank to pay my bills?
Immediate Financial Health ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What should the ratio be? ,[object Object],[object Object],[object Object]
What about the long term?  Am I financially secure?
Assessing Long-Term Health: The Reserve
Assessing Long-Term Health: The Reserve
Calculating the Reserve ,[object Object],[object Object],[object Object],[object Object]
What is a good reserve?
What is a good reserve? 3 months is fairly common.
Paper Rich but Cash Poor
Two Types of Accounting ,[object Object],[object Object]
Two Types of Accounting ,[object Object],[object Object],[object Object],[object Object]
Cash vs. Accrual:  An Example ,[object Object],[object Object],[object Object],[object Object],Month Recorded Cash Basis Accrual Basis Revenue October July Expense When Paid.  July or August July
 
 
 
[object Object]
[object Object],[object Object]
Temporarily Restricted  Net Assets ,[object Object],[object Object],[object Object]
Ways to Adjust Cashflow ,[object Object],[object Object],[object Object],[object Object]
Key Ratios to Watch Over ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
These are . . .  Trending Tools
Create a Dashboard to Monitor
The Dashboard Opportunity ,[object Object],[object Object],[object Object],[object Object]
Two Saviors
Two Saviors
Next Month: October 27, 2010 ,[object Object],[object Object],[object Object],[object Object],[object Object]
Are we sinking? Financial Leadership in Turbulent Times   Steve Zimmerman Spectrum Nonprofit Services [email_address] 414.226.2322 Nonprofit Services Center 326 South 21 st  Street, Suite 301 St. Louis, MO 63103 www.nonprofitservices.org Alliance for Nonprofit Excellence 5100 Poplar Ave., Suite 502  Memphis, TN 38137  www.npexcellence.org

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Are We Sinking?: Financial Leadership for Turbulent Times