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Financial Management for Nonprofit Organizations

by Netta on Feb 17, 2011

Your organization's financial health depends upon sound financial management. Nonprofits have an obligation to act as responsible stewards in managing their financial resources. Nonprofits should use their financial resources to accomplish their missions in an effective and efficient manner. In addition, an organization is accountable to its board, staff and the general public to know how much revenue it is receiving and how that money is being spent. It also needs to ensure that grants and all other income are spent in the manner intended. Establishing clear policies and practices to regularly monitor how funds are used will make managing your organization’s finances simpler and easy to account for.

A great place to start is creating and following an annual budget. Look at your budget as a plan that identifies the financial resources to achieve your objectives. Once constructed, this plan assists staff and board in managing the organization financially throughout...Read More >>



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Financial Management Case Study for Nonprofit Organizations

by Netta

Summary
Ready, Set, and Learn is a nonprofit preschool and daycare that provides a safe, comfortable, and educational haven for children of under privileged areas. It offers a place where parents can feel good about where their child is and know that they are safe as well as getting an education. They were having a hard time planning for unforeseen circumstances and did not have a good grasp on where their money went or what they should plan for.
The Background
Ready, Set, and Learn did not have a dedicated person handling the financial responsibilities of the...

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