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Webinar 4 – Nonprofit Financial Basics
GTCC Small Business Center
Greensboro, NC
June 9, 2020© STC Consulting, LLC 2019
www.stcconsultingllc.org
NONPROFIT DEVELOPMENT SERIES
WELCOME
Before we get started…
2
• Use the chat box to ask questions
• Place phone/device on Mute to block background noises
• Do not put your phone on “hold” during the webinar
• Be respectful to the presenter & attendees
© STC Consulting, LLC 2020 www.stcconsultingllc.org
ABOUT STC CONSULTING, LLC
Nonprofit Consulting Services
3
• We are a team of business consultants with expertise in:
o Nonprofit Startup
o Nonprofit Formation
o Board Training
o Technology Support
• Services are delivered in person and/or using technology:
o individualized coaching/mentoring
o group trainings
o workshops
o public speaking
o seminars
© STC Consulting, LLC 2020 www.stcconsultingllc.org
YOUR PRESENTERS
Dr. Kathryn Addo & Mrs. Samantha Marius-Dillingham
4
© STC Consulting, LLC 2020 www.stcconsultingllc.org
Samantha Marius Dillingham
Director of Financial Growth &
Profitability
• Financial Analysis &
Planning
• Mid-Level Accounting
• New Business &
Training Services
• Bookkeeping
• Training/Coaching
• Non-Profit
Formation
• Nonprofit
Governance
• Board Development
& Training
• Nonprofit
Development
Planning
Dr. Kathryn Addo
Nonprofit Consultant
President
SERVING OUR COMMUNITY
“Community Inspirations with Dr. K”
5
© STC Consulting, LLC 2020 www.stcconsultingllc.org
“Information that inspires &
music that soothes the soul!
The weekly 30-minute program promotes
philanthropy & nonprofits as forms of
community engagement & empowerment.
FRIDAYS @ 10:00 AM
www.WDRBmedia.com
www.iHeart.com
24/7 on www.soundcloud.com
NONPROFIT RESOURCES
Community Nonprofit Business Supports
6
© STC Consulting, LLC 2020 www.stcconsultingllc.org
NONPROFIT EDUCATION
GTCC Nonprofit Development Series – March & June 2020
7
© STC Consulting, LLC 2020 www.stcconsultingllc.org
3/3/20 Nonprofit Organization Formation
3/10/20 Developing Nonprofit Programs
6/2/20 Improving Nonprofit Impact Through Technology
6/9/20 Nonprofit Financial Basics
The Nonprofit Development Series is developed by STCC
Consulting, LLC & co-sponsored by the Small Business
Center at GTCC and the Greensboro Public Library.
NONPROFIT PROGRAMS & COUNSELING
GTCC Small Business Center
8
© STC Consulting, LLC 2020 www.stcconsultingllc.org
The GTCC Small Business Center (SBC) is part of the statewide Small
Business Center Network (SBCN), a community college-funded
initiative with a vision to foster and support entrepreneurship, small
business, and economic development in local communities with an
emphasis on assisting start-ups, early stage, and at-risk enterprises.
Our goal is to increase the number of viable businesses across the
state by providing high quality, accessible assistance to small business
owners, leading to job creation and retention. We do this through free
programs/seminars and confidential counseling.
In Greensboro, the SBC is located in the Nussbaum Center for
Entrepreneurship, Suite 1201, located at 1451 S. Elm Eugene Street.
The SBC also has an office in the High Point Chamber of Commerce,
where counseling is available.
LIBRARY RESOURCES FOR YOUR
NONPROFIT!
• We are a Foundation Information Network Partner- we provide
specialized access and knowledge to a suite of resources and
solutions provided by Candid.
• Free access to Foundation Directory Online, a premiere funding
research tool for nonprofits.
• Special collections of print and virtual materials for nonprofits-
topics include starting a nonprofit, board governance, grant
writing, and more.
• Free access to specialized databases that can help with
research for your nonprofit, including demographic and issue
research.
• Dedicated Librarian to help you learn about resources for your
nonprofit.
QUESTIONS?CONTACT ME!
Morgan Ritchie-Baum
Business & Nonprofit Librarian
E: morgan.ritchiebaum@greensboro-nc.gov
P: 336-373-4559
© STC Consulting, LLC 2020 www.stcconsultingllc.org
9
LET’S GET STARTED!
You will learn about…
10
1. The stages of Nonprofit Growth & Development
2. Board Fiduciary Duties
3. The Financially Healthy Nonprofit, and
4. Nonprofit Budgeting Review
© STC Consulting, LLC 2020 www.stcconsultingllc.org
Disclaimer: This presentation is provided for educational
and informational purposes only and should not be
construed as legal advice or as an offer to perform legal
services on any subject matter.
NONPROFIT GROWTH & DEVELOPMENT
11
© STC Consulting, LLC 2020 www.stcconsultingllc.org
BOARD OF DIRECTORS’ FIDUCIARY DUTIES
3 Legal Duties
12
© STC Consulting, LLC 2020 www.stcconsultingllc.org
• A fiduciary acts on the behalf of another based on an expectation of trust.
• The Board of Directors is required to follow 3 legal duties as they provide administrative & financial
management for the nonprofit.
Duty of Care: A board member must exercise reasonable care when
making a decision as a steward of the nonprofit.
• Attend meetings
• Be informed
• Rely on trustworthy information
• Exercise independent, sound judgment
• Monitor nonprofit activities
BOARD OF DIRECTOR’S FIDUCIARY DUTIES
3 Legal Duties, cont’d
13
© STC Consulting, LLC 2020 www.stcconsultingllc.org
Duty of Loyalty: A board member can never use
information obtained as a member for personal gain. S/he
must act in the best interests of the organization.
• Avoid self-dealing transactions
• Decline corporate opportunities for the nonprofit
• All confidential information belongs to the nonprofit
Duty of Obedience: A board member must be faithful to
the organization's mission and must act in a way that is
consistent with the central goals of the organization.
• Obeys applicable laws & regulations
• Follows its own bylaws
• Makes Mission-focused decisions
5-MINUTE COMFORT BREAK – Q&A
Got Questions?
14
© STC Consulting, LLC 2020 www.stcconsultingllc.org
THE FINANCIALLY HEALTHY NONPROFIT
15
© STC Consulting, LLC 2020 www.stcconsultingllc.org
Governance:
Policies &
Procedures
Planning:
Budgeting &
Projections
Operations:
Recordkeeping
Monitoring:
Evaluations
& Analysis
$$$
IMPLEMENTING POLICIES & PROCEDURES
Establishing Accountability is a Priority!
16
• Board members must understand their roles and
responsibilities in financial matters
• Board of directors and management must hold
themselves responsible for long-term stability in both
programs and financial performance
• Policies must be established for major financial
decisions and adequate and appropriate internal
controls
• Board member officers, responsibilities, and policies
should be included in the nonprofit bylaws
© STC Consulting, LLC 2020 www.stcconsultingllc.org
THE BOARD TREASURER ROLE
Responsible for Operations, Oversight & Strategy
17
© STC Consulting, LLC 2020 www.stcconsultingllc.org
• Attends all Board meetings
• Maintains knowledge of the Nonprofit & personal commitment to its
goals and objectives
• Understands financial accounting for Nonprofits
• Serves as Chairperson of the Finance Committee
• Manages the Finance Committee, the Board’s review & action related to
the Board’s financial responsibilities
• Ensures that appropriate financial reports are made available to the Board
in a timely manner
• Presents the annual budget for Board approval
• Reviews the annual audit and answers Board questions about it
FINANCIAL ACCOUNTABILITY POLICIES
How the Money is Managed
18
© STC Consulting, LLC 2020 www.stcconsultingllc.org
• Establish Treasurer and Financial Committee Responsibilities
• Establish Policies regarding
o Financial Accounts Setup
o Check Signing
o Deposits
o Credit/Debit Cards
o Apps and Online Payment Accounts
o Contracts and Loans
• Consider hiring skilled personnel, providing training or outsourcing some services
• Establish Tracking System and Documentation of Financial Activities,
5-MINUTE COMFORT BREAK – Q&A
Please return promptly!
19
© STC Consulting, LLC 2020 www.stcconsultingllc.org
BUDGETING AND REPORTING
The Operating Budget
20
© STC Consulting, LLC 2020 www.stcconsultingllc.org
• The Budget numerically expresses the Nonprofit’s dreams in
the Mission statement
• It is based on reliable income and expense projections (well-
researched)
• Budgets are prepared in tandem with planning for programs
and operating needs
• The most reliable budgets yielding the best fiscal results for
the organization are conservative and income based
• Planners ensure expenses are lower than the dependable
income total
21
© STC Consulting, LLC 2020 www.stcconsultingllc.org
SAMPLE
NONPROFIT
BUDGET
2 TYPES OF NONPROFIT FINANCIAL REPORTS
The Income Statement & Balance Sheet
22
© STC Consulting, LLC 2020 www.stcconsultingllc.org
This statement quantifies the revenues
and expenses of a nonprofit for a
reporting period.
Program Management Expenses
Fundraising & Events Expenses
General Expenses
This statement reflects the overall
picture of a nonprofit at a given
moment in time. It also shows the
accumulated results of all the
preceding years of operating.
Reflects Financial Stability
Used to explain cash flow and
balances
Statement of Financial Position
(aka Balance Sheet )
Statement of Financial Activities
(aka Income Statement)
STRATEGIC PLANNING & ACTION
Evaluate…Adjust…Implement
23
© STC Consulting, LLC 2020 www.stcconsultingllc.org
• Monitor progress of programs and services and cash flow
• Modify programs and activities in response to variances
• Manage with a goal of operating surplus each year.
• Regularly review short-term and long-term plans and develop
develop goals and strategies for the future
CREATING SUSTAINABILITY, ACTIVITY & VISIBILITY
In Full Bloom
24
© STC Consulting, LLC 2020 www.stcconsultingllc.org
• Financial Responsibility
• Integrity
• Transparency
• Accountability
• Financial Management Self-Assessment
Contact Us!
STC Consulting, LLC
Greensboro, NC 27410
(336) 252-4891
(704) 315-8459
www.stcconsultingllc.org
Follow Us!
Facebook: STCConsultingLLC
Instagram: stcconsultingllc
LinkedIn: stcconsultingllc
Twitter: stconsultingllc
25

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How to Add a Filter in the Odoo 17 - Odoo 17 Slides
 

Nonprofit Financial Basics

  • 1. Webinar 4 – Nonprofit Financial Basics GTCC Small Business Center Greensboro, NC June 9, 2020© STC Consulting, LLC 2019 www.stcconsultingllc.org NONPROFIT DEVELOPMENT SERIES
  • 2. WELCOME Before we get started… 2 • Use the chat box to ask questions • Place phone/device on Mute to block background noises • Do not put your phone on “hold” during the webinar • Be respectful to the presenter & attendees © STC Consulting, LLC 2020 www.stcconsultingllc.org
  • 3. ABOUT STC CONSULTING, LLC Nonprofit Consulting Services 3 • We are a team of business consultants with expertise in: o Nonprofit Startup o Nonprofit Formation o Board Training o Technology Support • Services are delivered in person and/or using technology: o individualized coaching/mentoring o group trainings o workshops o public speaking o seminars © STC Consulting, LLC 2020 www.stcconsultingllc.org
  • 4. YOUR PRESENTERS Dr. Kathryn Addo & Mrs. Samantha Marius-Dillingham 4 © STC Consulting, LLC 2020 www.stcconsultingllc.org Samantha Marius Dillingham Director of Financial Growth & Profitability • Financial Analysis & Planning • Mid-Level Accounting • New Business & Training Services • Bookkeeping • Training/Coaching • Non-Profit Formation • Nonprofit Governance • Board Development & Training • Nonprofit Development Planning Dr. Kathryn Addo Nonprofit Consultant President
  • 5. SERVING OUR COMMUNITY “Community Inspirations with Dr. K” 5 © STC Consulting, LLC 2020 www.stcconsultingllc.org “Information that inspires & music that soothes the soul! The weekly 30-minute program promotes philanthropy & nonprofits as forms of community engagement & empowerment. FRIDAYS @ 10:00 AM www.WDRBmedia.com www.iHeart.com 24/7 on www.soundcloud.com
  • 6. NONPROFIT RESOURCES Community Nonprofit Business Supports 6 © STC Consulting, LLC 2020 www.stcconsultingllc.org
  • 7. NONPROFIT EDUCATION GTCC Nonprofit Development Series – March & June 2020 7 © STC Consulting, LLC 2020 www.stcconsultingllc.org 3/3/20 Nonprofit Organization Formation 3/10/20 Developing Nonprofit Programs 6/2/20 Improving Nonprofit Impact Through Technology 6/9/20 Nonprofit Financial Basics The Nonprofit Development Series is developed by STCC Consulting, LLC & co-sponsored by the Small Business Center at GTCC and the Greensboro Public Library.
  • 8. NONPROFIT PROGRAMS & COUNSELING GTCC Small Business Center 8 © STC Consulting, LLC 2020 www.stcconsultingllc.org The GTCC Small Business Center (SBC) is part of the statewide Small Business Center Network (SBCN), a community college-funded initiative with a vision to foster and support entrepreneurship, small business, and economic development in local communities with an emphasis on assisting start-ups, early stage, and at-risk enterprises. Our goal is to increase the number of viable businesses across the state by providing high quality, accessible assistance to small business owners, leading to job creation and retention. We do this through free programs/seminars and confidential counseling. In Greensboro, the SBC is located in the Nussbaum Center for Entrepreneurship, Suite 1201, located at 1451 S. Elm Eugene Street. The SBC also has an office in the High Point Chamber of Commerce, where counseling is available.
  • 9. LIBRARY RESOURCES FOR YOUR NONPROFIT! • We are a Foundation Information Network Partner- we provide specialized access and knowledge to a suite of resources and solutions provided by Candid. • Free access to Foundation Directory Online, a premiere funding research tool for nonprofits. • Special collections of print and virtual materials for nonprofits- topics include starting a nonprofit, board governance, grant writing, and more. • Free access to specialized databases that can help with research for your nonprofit, including demographic and issue research. • Dedicated Librarian to help you learn about resources for your nonprofit. QUESTIONS?CONTACT ME! Morgan Ritchie-Baum Business & Nonprofit Librarian E: morgan.ritchiebaum@greensboro-nc.gov P: 336-373-4559 © STC Consulting, LLC 2020 www.stcconsultingllc.org 9
  • 10. LET’S GET STARTED! You will learn about… 10 1. The stages of Nonprofit Growth & Development 2. Board Fiduciary Duties 3. The Financially Healthy Nonprofit, and 4. Nonprofit Budgeting Review © STC Consulting, LLC 2020 www.stcconsultingllc.org Disclaimer: This presentation is provided for educational and informational purposes only and should not be construed as legal advice or as an offer to perform legal services on any subject matter.
  • 11. NONPROFIT GROWTH & DEVELOPMENT 11 © STC Consulting, LLC 2020 www.stcconsultingllc.org
  • 12. BOARD OF DIRECTORS’ FIDUCIARY DUTIES 3 Legal Duties 12 © STC Consulting, LLC 2020 www.stcconsultingllc.org • A fiduciary acts on the behalf of another based on an expectation of trust. • The Board of Directors is required to follow 3 legal duties as they provide administrative & financial management for the nonprofit. Duty of Care: A board member must exercise reasonable care when making a decision as a steward of the nonprofit. • Attend meetings • Be informed • Rely on trustworthy information • Exercise independent, sound judgment • Monitor nonprofit activities
  • 13. BOARD OF DIRECTOR’S FIDUCIARY DUTIES 3 Legal Duties, cont’d 13 © STC Consulting, LLC 2020 www.stcconsultingllc.org Duty of Loyalty: A board member can never use information obtained as a member for personal gain. S/he must act in the best interests of the organization. • Avoid self-dealing transactions • Decline corporate opportunities for the nonprofit • All confidential information belongs to the nonprofit Duty of Obedience: A board member must be faithful to the organization's mission and must act in a way that is consistent with the central goals of the organization. • Obeys applicable laws & regulations • Follows its own bylaws • Makes Mission-focused decisions
  • 14. 5-MINUTE COMFORT BREAK – Q&A Got Questions? 14 © STC Consulting, LLC 2020 www.stcconsultingllc.org
  • 15. THE FINANCIALLY HEALTHY NONPROFIT 15 © STC Consulting, LLC 2020 www.stcconsultingllc.org Governance: Policies & Procedures Planning: Budgeting & Projections Operations: Recordkeeping Monitoring: Evaluations & Analysis $$$
  • 16. IMPLEMENTING POLICIES & PROCEDURES Establishing Accountability is a Priority! 16 • Board members must understand their roles and responsibilities in financial matters • Board of directors and management must hold themselves responsible for long-term stability in both programs and financial performance • Policies must be established for major financial decisions and adequate and appropriate internal controls • Board member officers, responsibilities, and policies should be included in the nonprofit bylaws © STC Consulting, LLC 2020 www.stcconsultingllc.org
  • 17. THE BOARD TREASURER ROLE Responsible for Operations, Oversight & Strategy 17 © STC Consulting, LLC 2020 www.stcconsultingllc.org • Attends all Board meetings • Maintains knowledge of the Nonprofit & personal commitment to its goals and objectives • Understands financial accounting for Nonprofits • Serves as Chairperson of the Finance Committee • Manages the Finance Committee, the Board’s review & action related to the Board’s financial responsibilities • Ensures that appropriate financial reports are made available to the Board in a timely manner • Presents the annual budget for Board approval • Reviews the annual audit and answers Board questions about it
  • 18. FINANCIAL ACCOUNTABILITY POLICIES How the Money is Managed 18 © STC Consulting, LLC 2020 www.stcconsultingllc.org • Establish Treasurer and Financial Committee Responsibilities • Establish Policies regarding o Financial Accounts Setup o Check Signing o Deposits o Credit/Debit Cards o Apps and Online Payment Accounts o Contracts and Loans • Consider hiring skilled personnel, providing training or outsourcing some services • Establish Tracking System and Documentation of Financial Activities,
  • 19. 5-MINUTE COMFORT BREAK – Q&A Please return promptly! 19 © STC Consulting, LLC 2020 www.stcconsultingllc.org
  • 20. BUDGETING AND REPORTING The Operating Budget 20 © STC Consulting, LLC 2020 www.stcconsultingllc.org • The Budget numerically expresses the Nonprofit’s dreams in the Mission statement • It is based on reliable income and expense projections (well- researched) • Budgets are prepared in tandem with planning for programs and operating needs • The most reliable budgets yielding the best fiscal results for the organization are conservative and income based • Planners ensure expenses are lower than the dependable income total
  • 21. 21 © STC Consulting, LLC 2020 www.stcconsultingllc.org SAMPLE NONPROFIT BUDGET
  • 22. 2 TYPES OF NONPROFIT FINANCIAL REPORTS The Income Statement & Balance Sheet 22 © STC Consulting, LLC 2020 www.stcconsultingllc.org This statement quantifies the revenues and expenses of a nonprofit for a reporting period. Program Management Expenses Fundraising & Events Expenses General Expenses This statement reflects the overall picture of a nonprofit at a given moment in time. It also shows the accumulated results of all the preceding years of operating. Reflects Financial Stability Used to explain cash flow and balances Statement of Financial Position (aka Balance Sheet ) Statement of Financial Activities (aka Income Statement)
  • 23. STRATEGIC PLANNING & ACTION Evaluate…Adjust…Implement 23 © STC Consulting, LLC 2020 www.stcconsultingllc.org • Monitor progress of programs and services and cash flow • Modify programs and activities in response to variances • Manage with a goal of operating surplus each year. • Regularly review short-term and long-term plans and develop develop goals and strategies for the future
  • 24. CREATING SUSTAINABILITY, ACTIVITY & VISIBILITY In Full Bloom 24 © STC Consulting, LLC 2020 www.stcconsultingllc.org • Financial Responsibility • Integrity • Transparency • Accountability • Financial Management Self-Assessment
  • 25. Contact Us! STC Consulting, LLC Greensboro, NC 27410 (336) 252-4891 (704) 315-8459 www.stcconsultingllc.org Follow Us! Facebook: STCConsultingLLC Instagram: stcconsultingllc LinkedIn: stcconsultingllc Twitter: stconsultingllc 25