One of the major reasons nonprofits fail is the lack of strong financial policies and procedures (tracking, reporting, planning, etc.) that allow the Board of Directors and leadership to maintain the financial health of the organization.
Often coming from the nonprofit world, executive directors are likely to be highly skilled in areas of program development, but have not been exposed to nor trained in the financial management necessary to ensure the organization is sustainable and able to support the programs that produce mission impact.
Additionally, many nonprofit boards fall into the trap of getting too involved in the programmatic aspects and day-to-day operations of the organization, and lose sight of their key governance role, that of overseeing the financial operations of the organization.
The resources in this chapter will help the board and leadership manage the financial health of their organizations. This chapter is intended to provide the tools and information you and your board need to know about managing day-to-day finances, forecasting budgets, planning for and meeting a net financial result, end of year activities such as audits, meeting government and funder requirements, managing risks, and meeting your overall fiduciary responsibilities.
In addition to the materials listed in this chapter, see these helpful links from Nonprofit Information:
- How Not-For-Profit Organizations Can Prepare for an Audit
- Nonprofit CFOs: Keep Your Staff Engaged With These 3 Tips
- How Will the New Guidance for Financial Statements Impact Nonprofits?
- Updated Standards for Nonprofit Financial Reporting
- Fund Accounting for Nonprofits: What Is It and How Does It Work
- Understanding Nonprofit Financial Statements
- 10 Simple Steps to Prepare for the Year-End Audit
- Five Reasons You Need Accounting/Financial Experience on Your Board
- Common Cash Flow Mistakes Made by Nonprofits
- Nonprofits Need to Remember the Form 990 is an Excellent Fundraising Tool
- Focus QuickBooks On Your Board’s Needs