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Non-profit Financial Fundamentals   Essentials to a Healthy Non-profit
Welcome ,[object Object],[object Object],[object Object],[object Object]
Financial Management’s  Primary Role: ,[object Object]
Our Objectives …… ,[object Object],[object Object],[object Object],[object Object]
Financial Management  Elements ,[object Object],[object Object],[object Object],[object Object],[object Object]
Financial Management Benefits ,[object Object],[object Object],[object Object],[object Object],[object Object]
Illustrations & Examples ,[object Object],[object Object]
What characteristics are  critical to making a successful … ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Faithful Fruitful Farmer
Let’s start with a story…. ,[object Object]
Food & Warmth Inc. ,[object Object],[object Object],[object Object]
Element #1:  Strong Budget Process ,[object Object]
Budget Process  ,[object Object],[object Object],[object Object],[object Object]
Budget Process Building Blocks ,[object Object],[object Object],[object Object],[object Object],[object Object]
Chart of Accounts ,[object Object]
Example Chart of Accounts ,[object Object],[object Object],[object Object]
Review Food & Warmth Inc. ,[object Object],[object Object],[object Object]
Anticipate Your Cash Needs ,[object Object]
Budget Process Skills ,[object Object],[object Object],[object Object],[object Object],[object Object]
Self Evaluation Check List: #1:  Strong Budget Process ,[object Object]
Element # 2 Timely Management Reports:   ,[object Object],[object Object],[object Object],[object Object]
Management Reports Building Blocks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Suggested Monthly Reports ,[object Object],[object Object],[object Object],[object Object],[object Object]
Develop Reporting Skills ,[object Object],[object Object],[object Object],[object Object],[object Object]
Indirect Cost Exercise (Square Feet) 10,000  5,000  4,000  500  500  Space Used 14 6 8 Number Volunteers 6 2 2 1 1 Number Staff $500,000  $160,000  $260,000  $40,000  $40,000  Actual Annual Cost Total Clothing Bank Food Bank Fundraising Admin Category
Food & Clothing Inc. Example ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Self Evaluation Check List: #2:  Timely Management Reports ,[object Object]
Element #3:  Strong Internal Controls ,[object Object],[object Object],[object Object]
“ Opportunity facilitates Temptation” ,[object Object],[object Object],[object Object],[object Object],[object Object]
Internal Control Building Blocks   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
1.  Budget ;  2.  Authority ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
3.  Cash Management ,[object Object],[object Object],[object Object]
Target Days Cash on Hand Average Monthly Expenses Target / Goal $60,000 $45,000 $30,000 90 $40,000 $30,000 $20,000 60 $20,000 $15,000 $10,000 30 $20,000 $15,000 $10,000 Days Cash on Hand
4.  Segregation of Duties ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Design Segregation of Duties ,[object Object],[object Object],[object Object]
5.  Restricted Fund Management ,[object Object],[object Object]
Restricted Funds ,[object Object],[object Object]
Restricted Funds Example $ 120,000  $ 120,000  Total Restricted & Unrestricted $  (5,000) $  40,000  Unrestricted Funds $ 125,000  $  80,000  Total Restricted Funds $  20,000  $  5,000  Intern Support $  25,000  $  15,000  Federal Grant $  80,000  $  60,000  Building Restricted Funds $ 120,000  $ 120,000  Total Cash All Accounts Example 2 Acct. Bal. Example 1 Acct. Bal. Funds
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
7.  Three Bid Requirement  ,[object Object],[object Object]
Building Your Capacity ,[object Object],[object Object],[object Object]
Self Evaluation Check List: #3:  Strong Internal Controls ,[object Object]
Element #4:  Consistent Documentation: Financial & Program Activity   ,[object Object],[object Object]
Documentation Building Blocks: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Principles of Documentation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Review of Example Forms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Building Your Capacity ,[object Object]
Self Evaluation Check List: #4:  Consistent Accurate Documentation ,[object Object]
Element #5:  Self Assessment & Capacity Development Plan.   ,[object Object],[object Object]
Self Assessment & Capacity Building Blocks ,[object Object],[object Object],[object Object]
Key Elements for Grant  Readiness ,[object Object],[object Object],[object Object],[object Object]
Fundamental Financial Elements ,[object Object],[object Object],[object Object],[object Object],[object Object]
“Daily” “Faithful” & “Fruitful”

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Financial Management Slides

  • 1. Non-profit Financial Fundamentals Essentials to a Healthy Non-profit
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  • 25. Indirect Cost Exercise (Square Feet) 10,000 5,000 4,000 500 500 Space Used 14 6 8 Number Volunteers 6 2 2 1 1 Number Staff $500,000 $160,000 $260,000 $40,000 $40,000 Actual Annual Cost Total Clothing Bank Food Bank Fundraising Admin Category
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  • 33. Target Days Cash on Hand Average Monthly Expenses Target / Goal $60,000 $45,000 $30,000 90 $40,000 $30,000 $20,000 60 $20,000 $15,000 $10,000 30 $20,000 $15,000 $10,000 Days Cash on Hand
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  • 38. Restricted Funds Example $ 120,000 $ 120,000 Total Restricted & Unrestricted $ (5,000) $ 40,000 Unrestricted Funds $ 125,000 $ 80,000 Total Restricted Funds $ 20,000 $ 5,000 Intern Support $ 25,000 $ 15,000 Federal Grant $ 80,000 $ 60,000 Building Restricted Funds $ 120,000 $ 120,000 Total Cash All Accounts Example 2 Acct. Bal. Example 1 Acct. Bal. Funds
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