Good financial management is crucial for nonprofit organizations. Here is some useful information to help ensure a smooth and complete process.
Financial management basics and best practices
- Sound Financial Management for a Sound Night’s Sleep – Third Sector New England
- Basic Overview of U.S. Nonprofit Financial Management – Free Management Library
- Financial Management – National Council of Nonprofits
- Plan for a Fun and Successful 2013 – Chris Bertoncini
Here is some helpful information about creating a budget. Be sure to start planning your annual budget at least three months before the end of your current fiscal year.
- Non-profit Budget Tips for a Healthy New Year – Third Sector New England
- Annual Budget Planning: A 10 Step Checklist – Nonprofits Assistance Fund
- Nonprofit Cost Analysis: Introduction
Some argue that it’s better for smaller nonprofits to outsource their payroll, but if you are thinking of doing your own, here are some suggestions.
An audit can be a daunting process. In Massachusetts a formal audit is required for organizations with budgets over $500,000. An external financial review (less ambitious than an audit) is required for organizations between $200,000 and $500,000. Here is what you need to know about audit requirements, which might help ease the burden.
You hear the term capacity building a lot, but you may not know what it means and why it is important. Here are some answers to your questions.
- Capacity Building (Nonprofit) – Free Management Library
- Capacity Building for Nonprofit Organizations: A Resource List – Foundation Center
Third Sector New England provides Capacity Building grants to area nonprofits: Capacity Building Networks
Thinking about starting an endowment? They are not just for large organizations. They can be an important tool for long term discretionary and/or matching funds.
- How to Start an Endowment for Your Nonprofit – About.com
- Investment and Endowment Policies – Nonprofit Assistance Fund
In this unstable economy, it’s even more important for organizations to have a reserve fund. Most organizations should try and carry a reserve of at least 3 months operating expenses.
- Operating Reserves – Nonprofit Assistance Fund
- What Level of Reserve Funds is Appropriate for a Nonprofit? – Board Source
Financial management in tough economic times
It’s been a difficult time for many organizations. Here are some ways you can manage your budget and organization during this recession.
- Financial Analysis in Turbulent Times – Third Sector New England
- Four Questions for Charities to Answer as They Seek to Thrive in Hard Times – Bridgespan
All organizations operate on a fiscal year. Many nonprofit organizations’ fiscal year runs from July 1 to June 30. Some use a calendar year and others model the federal government and run from October 1 to September 30. It’s up to your board to decide what would work best for your organization.