Developing and adopting a written financial policy is a valuable practice for any nonprofit organization, no matter how small or large. Financial policies clarify the roles, authority, and responsibilities for essential financial management activities and decisions. In the absence of an adopted policy, staff and board members are likely to operate under a set of assumptions that may or may not be accurate or productive. If the idea of creating a financial policy seems daunting, these guidelines for policy development and this downloadable basic example may be helpful.
Sample or Template
Establishing good fiscal policies and procedures is more of an investment of time and attention than money. There is no “one size fits all” template that will work for all organizations. This guide offers a recommended structure for policies and procedures as well as some questions to guide you in considering what is best for your organization. (CompassPoint, 2012)
- This AICPA tool contains sample elements that can be used in the creation of an operating reserve policy. As with any policy of this nature, the NFP may wish to consult their legal counsel or independent auditor for assistance in developing an operating reserve policy that is appropriate for the organization that has been customized based on the risks, operations and structure of your organization
Financial ratios are an established tool for businesses and nonprofits to understand an organization’s financial situation and help leaders identify strengths and weaknesses in financial condition. This tool provides calculation of 14 ratios, including a mix of balance sheet and income statement ratios. (Propel Nonprofits)
Use these sample policies as a guideline to create an investment policy for your organization.
This sample is a starting point for designing your own budget. You may customize this sample budget to fit your organization's needs.
Most foundations and corporate funders require organizations to submit a project budget with their grant application. William A. Bayreuther Grantwriting has provided complementary samples of proposal budgets for a 1 year project, 2 year project and a capacity building request. (Maine Association of Nonprofits)
Sample reserve fund policy examples you can adapt for your organization provided by Propel Nonprofits.
Operating Reserves with Nonprofit Policy Examples
A sample RFP for audit services that you can adapt for your organization.
This signature authority policy serves as a sample of the permission to execute transactions established by relevant policies and permission to approve transactions for execution.