Financial Management

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Financial Management of Not-for-Profit Organizations

This financial management

Includes an organization’s Executive Director and managers, but not staff or supervisors. See also definition for “staff.”

for non-profit organization was created by Blackbaud. It states that the budgeting process and the ongoing management of cash and other assets are two critical areas of focus for not-for-profit financial managers. This focus is dictated by the overarching stewardship obligations of a charitable organization that receives money from the public to meet a perceived societal need.
 
 Financial Management of Not-for-Profit Organizations Blackbaud October 2011

GST/HST Information for Non-Profit Organizations

This guide was collected from the Canada Revenue Agency. It explains how the goods and services tax/harmonized sales tax (GST/HST) applies to non-profit organizations. It explains registration requirements, exemptions, rebates, and simplified methods of accounting that may apply to your organization.
 
Canada Revenue Agency July 2010
 

Developing a Financing Strategy

This resource, developed by Civicus, is a toolkit that provides an overview for organizations looking to develop an effective financing strategy. Effective financing strategies have emerged in response to a number of emerging issues, but namely new contextual realities (including funder/donor relationships with agencies), financial sustainability, and financial autonomy (pp. 3-7). Before one develops an effective financial strategy, organizations must ensure that a number of pre-requisites are in place. Among these include: an organization strategy and budget, financial systems, public image, and value clarity (pp. 9-19). The toolkit explores developing financial strategies through earned income, which include: fee for services (pp. 24-25), sales (pp. 26-28). Lastly, an example of a financing strategy document is included, which serves as a great template for agencies (pp. 50-54) as well as a glossary of terms (p 56).

Shaprio, J; Civicus. (2011) Developing a Financing Strategy. 1-57. Washington D.C, United States.

Budgeting Part 2 of 2

This resource, developed by Civicus, offers guidelines and best practices

Best Practices / Good Practices / Promising Practices

Ways of working that are acknowledged as effective and deserving of emulation.

for developing and monitoring an organizational budget. It is divided into two parts; Part 1 provides a general overview along with more in-depth analysis and understanding of the various intricacies of developing and monitoring a budget and Part 2 are appendices that are examples of different types of budgets (i.e. yearly, monthly, variance statements etc.). Part 1 begins by illustrating various categories of estimating costs along with various frameworks for mapping out these costs (pp. 8-9). Different kinds of budgets are also explored including: a survival budget, a guaranteed budget, and an optimal budget (p 15). Lastly, important information regarding monitoring against a set budget is explored along with monitoring cash flow, an excellent practice that can be built into reporting schemes (pp. 26-28).

Janet Shapiro. (2001). Budgeting Parts 1 and 2. 1-46. Johannesburg, South Africa. 

 

Budgeting Part 1 of 2

 

This resource, developed by Civicus, offers guidelines and best practices

Best Practices / Good Practices / Promising Practices

Ways of working that are acknowledged as effective and deserving of emulation.

for developing and monitoring an organizational budget. It is divided into two parts; Part 1 provides a general overview along with more in-depth analysis and understanding of the various intricacies of developing and monitoring a budget and Part 2 are appendices that are examples of different types of budgets (i.e. yearly, monthly, variance statements etc.). Part 1 begins by illustrating various categories of estimating costs along with various frameworks for mapping out these costs (pp. 8-9). Different kinds of budgets are also explored including: a survival budget, a guaranteed budget, and an optimal budget (p 15). Lastly, important information regarding monitoring against a set budget is explored along with monitoring cash flow, an excellent practice that can be built into reporting schemes (pp. 26-28).

Janet Shapiro. (2001). Budgeting Parts 1 and 2. 1-46. Johannesburg, South Africa. 

 

Financial Information Kit

This resource, developed by Charity Central, an initiative of the Centre for Public Legal Education Alberta, has been compiled to provide basic information for non-profit organizations regarding financial management

Includes an organization’s Executive Director and managers, but not staff or supervisors. See also definition for “staff.”

practices that are in compliance with the requirements stipulated by the Canada Revenue Agency. There are several tip sheets that answer frequently asked questions such as choosing a professional account (pp. 1-3) and setting up a chart of accounts for smaller organizations (pp. 12-15). Templates for monitoring financial performance are also provided (p 16) and even steps that organizations can take in order to effectively prepare for an external audit (pp. 23).

Charity Central. (2010). Financial Information Kit. 1-30. Edmonton, Canada

Keeping the Record Straight: Introductory Accounting for Not-for-Profit Organizations

This resource, developed by Certified General Accountants of Ontario, is a simplified bookkeeping package for non-profit organizations that intends “to answer most questions regarding record keeping, as well as [providing] assistance in properly managing funds” (5). The resource provides an overview of many different bookkeeping procedures including cheque disbursements (pp. 13-15), bank reconciliation (pp. 19-22), and information relating to payroll procedures (pp. 23-26). At the end of the document, the resource delves into some of the legal aspects of bookkeeping related to Ontario laws and legislature as well as providing a list of Canada Revenue Agency Tax Service Office and Tax Centres (pp. 29-35). Sample forms are also included with each section of the document that can be used as templates or modified to suit an agency’s needs.

Certified General Accountants of Ontario. (2007). Keeping the Record Straight: Introductory Accounting for Not-for-Profit Organizations. 1-37. Toronto, Canada.

 

 

 

Financial Management Manual

 

This resource, developed by Stratagems Consulting Group, is a manual for agencies that examines the various facets of financial management

Includes an organization’s Executive Director and managers, but not staff or supervisors. See also definition for “staff.”

, including “planning, organising[sic], controlling and monitoring financial resources in order to achieve organisational[sic] objectives” (p 2). The manual begins by outlining recommended contents of a financial management manual including financial responsibilities of boardYour board of directors provides governance to your organization. members, expenditure controls, controls of financial accounting, and controls on human resources (pp. 6-7). A sample financial management manual is also provided in which agencies can use it as a base and adapt it (as necessary) to suit the individual organization (pp. 8-23). Sample financial policies can also be found in the manual, including fiscalRelating to finances or financial matters. policies (pp. 24-26), operating reserve policy (pp.26-27), and executive limitations for the board (pp. 32-33).

Stratagems (2011). Financial Management Manual. 1-35. Toronto, Canada.

 

 

Beyond the Bottom Line: Understanding & Promoting Nonprofit Financial Sustainability

This resource, developed by the Helen Bader Institute for Nonprofit Management

Includes an organization’s Executive Director and managers, but not staff or supervisors. See also definition for “staff.”

, affiliated with the University of Wisconsin – Milwaukee, explores the two dimensions of financial health and management, namely capacity and sustainability (p 1). This resource also provides non-profits with formulas to calculate both their short term and long term financial health (pp. 1-6) and how this can be sustained. To illustrate the formulas and methods provided, three non-profit case studies are offered as examples including their individualized statement of financial position (their balance sheet). A brief synopsis of the organization, including the financial strengths and challenges of each separate organization, are provided so readers can better understand and examine each of the balance sheets (pp. 18-32). The balance sheets also serve as excellent templates.

Bowman, W. (04 December, 2008). Beyond the Bottom Line: Understanding & Promoting Nonprofit Financial Sustainability. 1-32. Chicago, United States. 

 

Charity Law Information Program – Receipting Kit, Receipting Guide

This resource, developed by the Charity Law Information Program of the Ontario Community

The broad group of people who are stakeholders of an organization. Extending beyond the people that enter our buildings and use our services, an organization’s community may include cultural groups, sectoral partners, and other groups of people joined together by common identity, geography, and other bonds. Often where we use ‘community’ the word is actually short for multiple communities.

Support Association, is a toolkit that comprises a receipting guide, in-depth policy documents, and Canada Revenue Agency legislation related to issuing and filing receipts for non-profit agencies. The document lists all required elements that must be listed on charitable receipts along with a brief explanation of each item (pp 4-5) and it even provides a sample template of a donation receipt that agencies can use (pp 6-7) The resource also highlights the fact that many valuable payments and transfers do not qualify as ‘gifts’, including a list of examples including program admission fees, or contribution of services (pp 9-10).

Blumberg, M. (June, 2011). BoardYour board of directors provides governance to your organization. Checklist. 1-24. Toronto, Canada.

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