"A broad economic crisis can magnify a nonprofit's pre-existing financial difficulties. Getting through such crises requires communication, transparency, and planning." (Nonprofit Finance Fund) NFF recommends these tips for sound financial planning.
Financial management
- Who’s responsible for which kinds of oversight? The Board of Directors has overall legal responsibility for the financial health of your nonprofit. Board members need to understand key financial information and policies, and it’s recommended that they look at the following reports at least quarterly: Fiscal year budget (with comparisons to actual expenditures/revenue). Profit and loss statement (including programs).
In a meeting of the National Association of State Charity Officials (NASCO), the National Council of Nonprofits heard directly from a panel of regulators about what conduct can spook state charity regulators into conducting investigations of charitable nonprofits. This resource provides valuable reminders of how nonprofits can maintain their tax-exempt status through fastidious legal compliance.
We must answer the public's cry for accountability. Here are ten traits of an accountable nonprofit.
© North Carolina Center for Nonprofit Organizations, Inc. From Common Ground, a publication of the N.C. Center for Nonprofits, www.ncnonprofits.org.
Financial shortfalls and other circumstances sometimes force nonprofits to dissolve, file for bankruptcy, or merge. Of course, this impacts your programs, clients, and stakeholders. Here are some important questions to consider.
© North Carolina Center for Nonprofit Organizations, Inc. From Common Ground, a publication of the N.C. Center for Nonprofits, www.ncnonprofits.org.
While the emphasis of to role of vice president, finance and operations is finance, it includes responsibilities for managing a breadth of staff functions and requires an individual who is both strategic and tactical. Adapt this sample job description for your organization. (The Bridgespan Group)
This document will help you to fine-tune your bylaws, making sure to include each of these elements as detailed.
The board and staff responsibilities chart is meant to help guide nonprofit board and staff as they determine who’s involved in various activities of governing and managing the organization. You may adapt to fit your organization's needs.
Every nonprofit board member is legally responsible for the financial oversight of the organization he or she serves. BoardSource's Welcome to Your Key Financial Statements: A Primer for Nonprofit Board Members guide for boards of directors introduces the two most important financial documents - the balance sheet and income statement - that help board members meet their fiduciary responsibilities.
Advice based on dozens of interviews with leaders who've gone through hard times and on related texts and articles to encourage leaders to share the burden of managing financial difficulties.
© North Carolina Center for Nonprofit Organizations, Inc. From Common Ground, a publication of the N.C. Center for Nonprofits, www.ncnonprofits.org.