The document discusses the importance of financial management for NGOs, likening it to maintaining a car to ensure efficient operation. It outlines key aspects of financial management, including accountability, risk management, and the necessity of robust financial systems. The document emphasizes the need for strong financial planning, monitoring, and internal controls to achieve financial stability and credibility.

1. Financial management
for NGOs
Key concepts and jargon
Advance thinking for Mango training
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2. So what is
financial
management?
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3. Take a moment to write down
3 or 4 thoughts on what
financial management involves
before moving to the next
slide ...
Go on
when
ready
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4. Financial management entails:
our financial resources
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5. One way to think about financial
management to an organisation is
like maintenance to a car ...
.. we need to put in good
quality fuel and give it a
regular service so that it
will run efficiently.
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6. But if we neglect it,
the car will break down
and will not reach its
intended destination.
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7. www.mango.org.uk

8.  Money is used
properly
 Assets are kept
safe
 Staff are protected
 Managers can
sleep soundly!
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9.  This is a simple project
management cycle ...
See if you can write
down the equivalent of
each stage in financial
terms.
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Review
Go on
when
ready

10. Build in learning
and take action
Review
Monitor
the budget
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Set the
budgets
Receive &
spend project
funds

11. Why is financial management
important in our work?
 What do you think? The next slides
share ten good reasons
 How many can you get?
Go on
when
ready
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12. To be accountable
to the people who
give us money
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13. To be accountable
to the people who
give us money
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To be
accountable to
the communities
we work with

14. To be accountable
to the people who
give us money
To be
accountable to
the communities
we work with
To provide
financial reports
for regulatory
bodies
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15. To be accountable
to the people who
give us money
To be
accountable to
the communities
we work with
To provide
financial reports
for regulatory
bodies
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To plan for the
future and
become more
financially secure

16. To be accountable
to the people who
give us money
To minimise fraud,
theft and abuse of
resources
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To be
accountable to
the communities
we work with
To provide
financial reports
for regulatory
bodies
To plan for the
future and
become more
financially secure

17. To enable staff to
make better
decisions on the
use of funds
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18. To enable staff to
make better
decisions on the
use of funds
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To achieve the
objectives of the
organisation

19. To enable staff to
make better
decisions on the
use of funds
To achieve the
objectives of the
organisation
To enhance the
credibility of the
organisation
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20. To enable staff to
make better
decisions on the
use of funds
To achieve the
objectives of the
organisation
To enhance the
credibility of the
organisation
To strengthen
fundraising efforts
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21. To enable staff to
make better
decisions on the
use of funds
To
get best value for
our money
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To achieve the
objectives of the
organisation
To enhance the
credibility of the
organisation
To strengthen
fundraising efforts

22. A key feature of financial
management is
managing risk
Two types of risk:
 Internal – from
within, which we can
do something about
 External – from
outside so beyond our
direct control
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23.  Financial risks pose a threat to
our financial resources.
Write down one internal and
one external risk facing your
organisation...
Go on
when
ready
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24. Typical risks for NGOs:
 Internal – theft, fraud, fire,
accidental damage ...
 External –
exchange rate
loss, donors withdrawing
funds, inflation ...
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25. The key to good practice in
financial management?
Robust systems!
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26. There are
four building blocks
in a strong financial management
system ...
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27. Accounting records
 Books of account –
ie the summary
records
 Supporting
documents – ie the
paperwork
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28. Financial planning
 Budgets for
operations
 Financing
strategies for long
term planning
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29. Financial monitoring
 Financial statements
for external
accountability
 Budget monitoring
reports for internal
review
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30. Internal control
 Policies &
procedures
 Checks & balances
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31. Financial
control
 When all the building blocks are set up and
working effectively, we achieve financial control.
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32. Find out more about Mango
and free resources for NGOs
http://www.mango.org.uk/Guide
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