This document provides an overview of topics related to managing organizational finances for the UIC School of Public Health course. It includes sections on tracking organizational finances through cash, accrual, and cost accounting methods. It also discusses balance sheets, income statements, budgeting processes for state and local governments, challenges related to nonprofit revenue and accounting, and strategies for effective grant writing and fundraising.

1. UIC School of Public Health
Lara Jaskiewicz, PhD
*

2. *
*Read Fallon & Zgordzinski Ch. 4
*Read Wolf Ch. 6 & 7
*Watch video
*Review this PPT
*Complete the mid-semester course feedback
survey
*Start the 4th group assignment, due 14
*Ask any questions you have on this week’s
material on the class discussion board

3. *

4. *
*Managing Organizational Finances
*The Budgeting Process
*Grant Writing and Fund Raising

5. *

6. *
There are different ways to keep track of your
organization’s money:
*Cash—track when money is deposited and when
paid, good for current balance but not forecasting
*Accrual—incorporate funding awards and payment
promises, less helpful for current cash management
*Cost—categorize by the cost of providing certain
services, such as health promotion
*Fund—track by purpose of funding or specific
funder. Helps ensure funds are used only for that
purpose, but requires additional work to keep track
of budget items within the fund, e.g., salaries

7. *
*Balance sheet
*Snapshot of finances at one point in time
*Helps to see the balance of assets, liabilities,
and liquidity
*Income statement
*Summary of financial activity over time, often a
year, in corporations is also quarterly
*Can be summary of all income and expenses, and
can also compare within each fund account

8. *
*Negotiate best prices for supplies common
across organization
*Approve placement of orders—meets
organizational requirements for quality, other
standards
*Combine orders to ensure quantity discounts

9. *
Ensuing funds are spent as intended:
*Budget amending and monitoring procedures
*Check writing controls
*Need two signatures
*Person who approves is not person who signs
*Controls on incoming monies
*Bonding to insure against losses
*Physical controls and safety measures

10. *
*Tax returns—even nonprofits must report
income and expenses
*Unrelated business income tax—some
nonprofits own a for-profit business
*Employment taxes—income, Social Security,
unemployment insurance, etc.
*Audit reports—external review of financial
management quality

11. *

12. *
*States
*Most have a fiscal year starting in July
*Budget sessions can be either annual or biannual
*Cities and towns
*State law typically specifies the budget calendar
*Budget usually prepared by the executive

13. *
Principal sources of funding for state and local
government:
1. Sales taxes
2. Intergovernmental revenues
3. Property taxes
4. Individual income taxes
5. Corporate income taxes

14. *
Principal expenditures by state and local
governments:
1. Education
2. Welfare
3. Highways
4. Health
5. Debt interest
6. Administration
7. Police

15. *
*Relate it to the overall plan and goals of the
organization
*Trustees should be involved in developing and
overseeing

16. *
*Revenues
*Typically from grants & contributions, fees
*Challenges
*Capture the cost of each service and apply
to individual grants
*Different grantors may allow different line
items, or require accounting for different
line items

17. *
Convincing the funder your work will meet the
funder’s goals

18. *
In Nonprofit organizations:
*Providing contributions, which can be
described in many ways:
*The % of board members contributing
*The % of overall contributions that are from the
board
*Funds solicited

19. *
*Unrestricted gifts
*Allow organization to spend as needed, without
funder requirements (program, budget item,
etc.)
*Desirable, but difficult to obtain
*Individual contributions
*Want to increase both the number of people
giving, and the amount given
*Personalization matters

20. *
Used by many nonprofits
*Advantages
*Widens the donor pool
*Good PR
*Can get additional funds from existing contributors
*Board can help even if not experienced fund raisers
*Disadvantage
*Requires a lot of planning and work
*Key: balance cost to provide maximum
value/fun for participants at lowest cost

21. *
Making the case for support
*Identify the important needs or problems your
organization addresses—make them quantifiable
*Talk about your organization’s ability to address
those needs
*Match the activity discussed with the potential
funder’s interest, in their language
*Be careful not to develop new programs based
solely on a funder’s excitement

22. *
*Is much like a business plan
*Take time to find out which philanthropic
organizations fund which issues and activities
*Present your issue in the funder’s language

23. *
1. Only prospectors find gold
*If you don’t look, it won’t find you
2. Courtship precedes the proposal
*Get to know the funder first
3. Personalize the pitch
*Match your language to the funder’s goals
4. If you want bread, you need dough
*Donor’s like to fund those others have funded
5. When asking for money, assume consent
*Talk in terms of what funder will receive, avoid “if”
Wolf, pp. 282-285

24. *
6. If you can’t scan it, can it
* Make what you do and want easy to read and find
7. In designing budgets, use traditional math
* Use simple budgeting, not fancy calculations
8. When in doubt, communicate in English
* Avoid jargon unless the funder uses it
9. Don’t take “No” personally
* Yours is one of many that may be deserving
10.No matter how many times you said thank you, say
it again
* Take every opportunity to recognize your funders
Wolf, pp. 282-285