Donors, lawmakers, and other stakeholders are looking at your nonprofit’s "program efficiency ratio" (PER) as an indicator of good stewardship. If your organization has a low ratio, it can indicate that you devote too many resources to fundraising and management rather than program activities. However, the ratio doesn't paint the entire picture. Get tips from CPA Dennis Walsh on how to keep from being judged unfairly.
Accounting
Since there is no education credential or professional license for bookkeepers, their skillls can range widely. In this article, Mig Murphy Sistrom, CPA, provides a brief quiz that will help you determine if you need a skilled bookkeeper or not.
© North Carolina Center for Nonprofit Organizations, Inc. From Common Ground, a publication of the North Carolina Center for Nonprofits, www.ncnonprofits.org.
Unique accounting standards require that nonprofits report contributed income in one of three categories: unrestricted, temporarily restricted, or permanently restricted. Managing Restricted Funds defines unrestricted, temporarily restricted, and permanently restricted income and gives nonprofit leaders the tools to record, report, and effectively manage contributed income and net assets. (Propel Nonprofits)
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)
Wow, it's time for your audit again. Time flies when you're having fun! As with much of life, being prepared goes a long way. Here's what you can do.
© North Carolina Center for Nonprofit Organizations, Inc. From Common Ground, a publication of the North Carolina Center for Nonprofits, www.ncnonprofits.org.
This sample is a starting point for designing your own budget. You may customize this sample budget to fit your organization's needs.
A sample RFP for audit services that you can adapt for your organization.
Tracking volunteer time: sounds like another chore? Actually it can help you meet match requirements, improve your financial statement presentations, and reduce liability. This article explains why and how to include volunteer time in your budgets and financials. (Blue Avocado)
Tracking Volunteer Time to Boost Your Bottom Line: A Complete Accounting Guide