Nonprofit Resource Directory – Financial Management

Financial Leadership and the Board of Directors

Topic: Financial Management

Description:

The board bears ultimate responsibility for your nonprofit’s finances. Consider the tenets of sound financial leadership. This article articulates the role of the board of directors and key financial functions the board should be aware of, and to act as an ethnical compass in all financial transactions. It also addresses the overlap between the board’s legal and financial responsibilities.

Comments:

Additional resources are available at https://www.MissionBox.com

Source: MissionBox | Updated June 28, 2019 | Madeleine Monson-Rosen
Date Posted: 03/30/2021
Tags: financial management, board of directors, nonprofit, responsibilities, legal

Program Sustainability Assessment Tool

Topic: Financial Management

Description:

This online tool walks organizations through a four step assessment process to determine a program’s capacity for sustainability. The first step is understanding the factors that influence a program’s capacity for sustainability. Completing the 40-question program sustainability assessment tool is the second step. From this information, an automated a Sustainability Report assessing the program’s sustainability is available for review and analysis (step three). From the report analysis, instruction on how to develop an action plan to increase the likelihood of sustainability is step four.

Comments:

Programs are rated across 8 sustainability domains to generate an automated summary Sustainability Report of results. The online program, which takes about 40 minutes to complete, can be taken by an individual or as a group exercise. The tool has been particularly relevant for public health, social services, clinical care, and educational programs.

Source: Center for Public Health Systems Science, Washington University in St. Louis | December 2013 | Center for Public Health Systems Science, Washington University in St. Louis
Date Posted: 03/04/2021
Tags: Nonprofit, program evaluation, sustainability

How to Talk About Finances So Non-Financial Folks Will Listen

Topic: Financial Management

Description:

Drawn from the experience of CFO’s from a wide range of nonprofits and other highly respected experts, this article addresses three reasons why it is so hard to get people to pay attention to financials: 1)intimidation, 2) an organizational culture that doesn’t embrace financial information, and 3) a lack of financial literacy. The authors provide four specific solutions designed to addresses these obstacles and include sample tools appropriate for all nonprofits.

Comments:

Written 12 years ago, this article is especially pertinent today when clarity and transparency are essential in communicating an organization’s financial condition to stakeholders. While focused primarily on developing financial literacy among staff members, the concepts and recommendations included are applicable to board members and – to a lesser extent – to funders and other stakeholders. The piece avoids common financial jargon, includes “hands-on” advice, and incorporates several creative – and even humorous! – tools, including a description of one contributor’s “Finance for Poets” training workshop.

Source: Bridgestar | January 1, 2008 | [Unknown]
Date Posted: 01/12/2021
Tags: Nonprofit, finances, communication

Nonprofit Financial Policy Guidelines and Example

Topic: Financial Management

Description:

“Nonprofit Financial Policy Guidelines and Example” provides a succinct framework that nonprofits can use to develop a set of financial policies. Appropriate for any organization, it includes descriptions for each of five essential financial policy statements. Also incorporated is a sample Financial Policy that illustrates how the principles articulated can be put into practice.

Comments:

Clear and easy-to-use, this resource addresses all of the most important financial policies that every nonprofit should have. It includes guidance on fiscal authority, conflicts of interest, insider transactions, entering into contracts, maintaining financial records, and other important matters. The example illustrates the principles articulated perfectly.

Source: Propel Nonprofits | Reproduced with permission from Propel Nonprofits, Minneapolis, Minnesota.
Date Posted: 10/28/2020
Tags: Nonprofits, finances, financial policies

Building a Dashboard

Topic: Financial Management

Description:

“Building a Dashboard” provides an easy-to-use framework that enables a group of the board or staff members to develop the framework for a simple Dashboard in ten minutes or less. It includes definitions, instructions, forms, and examples that illustrate each aspect of a Dashboard.

Comments:

This resource will enable a small working group of board and/or staff members to create a framework for their organization’s first Dashboard. The instructions are clear and concise, and the process used is straight-forward and logical. While the examples are a bit simplistic, they are easy to grasp and illustrate important attributes of effective Dashboards.

Source: Center for Nonprofit Stewardship | 2014 | In conjunction with Adrienne Graham
Date Posted: 10/28/2020
Tags: Nonprofits, programs, evaluation, dashboards, performance indicators, KPIs

Balance Sheet Cheat Sheet

Topic: Financial Management

Description:

The “Balance Sheet Cheat Sheet” is a two-page overview of balance sheet basics. It includes definitions for important terms, notes six key measures that can be derived from a balance sheet, and provides examples of how those measures can be calculated.

Comments:

This is an ideal resource for anyone who wants to learn more about balance sheets and the key role they play in tracking and reporting on a nonprofit organization’s financial health. Clear and concisely written, it avoids much of the terminology that often obscures the most important aspects of balance sheets.

Source: Propel Nonprofits | Reproduced with permission from Propel Nonprofits, Minneapolis, Minnesota
Date Posted: 10/28/2020
Tags: Nonprofits, finances, balance sheet, liquidity

The Big Reset: Guidance for Nonprofits

Topic: Financial Management

Description:

“The Big Reset: Guidance for Nonprofits” provides a thoughtful perspective on the impact the COVID-19 pandemic has had on the nonprofit sector. The author details 12 actions that organizations can take now to survive the current crisis and position themselves for sustainability in the areas of cash management, planning, restructuring, developing and encouraging leadership, and innovation.

Comments:

This piece offers a good counterpoint to “Tough Times Call for Tough Action: A Decision Framework for Nonprofit Leaders & Boards.” Not only does it invoke the COVID-19 pandemic, but it also references systemic racism, the current economic crisis, political turmoil, and the climate crisis while suggesting how nonprofits can reposition themselves to survive and thrive with greater impact.

Source: Morino Institute | 2020 | Mario Morino
Date Posted: 10/28/2020
Tags: Nonprofits, finances, planning, COVID-19

Tough Times Call for Tough Action: A Decision Framework for Nonprofit Leaders & Boards

Topic: Financial Management

Description:

This resource provides a context for the difficult decisions nonprofit leaders need to make in the current crisis environment. Based on SeaChange Capital Partners’ actual work with nonprofit organizations, it provides guidance and advice in eight distinct areas.

Comments:

“Tough Times Call for Tough Action: A Decision Framework for Nonprofit Leaders & Boards” provides a concise and easy-to-read framework for decision making in the context of COVID-19. This resource will have a lengthy “shelf life,” since it addresses both short-term (cash management) and long-term (strategic restructuring) issues that all nonprofits will need to confront.

Source: SeaChange Capital Partners | March 31, 2020
Date Posted: 10/28/2020
Tags: Nonprofits, finances, planning, COVID-19