Financial Management for Nonprofit Organizations - Policies and Practices

Essential tools and guidance for effective nonprofit financial management
 
Financial Management for Nonprofit Organizations provides students, professionals, and board members with a comprehensive reference for the field. Identifying key objectives and exploring current practices, this book offers practical guidance on all major aspects of nonprofit financial management. As nonprofit organizations fall under ever-increasing scrutiny and accountability, this book provides the essential knowledge and tools professional need to maintain a strong financial management system while serving the organization's stated mission. Financial management, cash flow, and financial sustainability are perennial issues, and this book highlights the concepts, skills, and tools that help organizations address those issues. Clear guidance on analytics, reporting, investing, risk management, and more comprise a singular reference that nonprofit finance and accounting professionals and board members should keep within arm's reach.
 
Updated to reflect the post-recession reality and outlook for nonprofits, this new edition includes new examples, expanded tax-exempt financing material, and recession analysis that informs strategy going forward.
* Articulate the proper primary financial objective, target liquidity, and how it ensures financial health and sustainability
* Understand nonprofit financial practices, processes, and objectives
* Manage your organization's resources in the context of its mission
* Delve into smart investing and risk management best practices
* Manage liquidity, reporting, cash and operating budgets, debt and other liabilities, IP, legal risk, internal controls and more
* Craft appropriate financial policies
 
Although the U.S. economy has recovered, recovery has not addressed the systemic and perpetual funding challenges nonprofits face year after year. Despite positive indicators, many organizations remain hampered by pursuit of the wrong primary financial objective, insufficient funding and a lack of investment in long-term sustainability; in this climate, financial managers must stay up-to-date with the latest tools, practices, and regulations in order to serve their organization's interests. Financial Management for Nonprofit Organizations provides clear, in-depth reference and strategy for navigating the expanding financial management function.

Inhaltsverzeichnis

About the Authors xxiii
 
Preface xxv
 
Acknowledgments xxix
 
1 Understanding Nonprofit Organization Finances 1
 
1.1 The Impact of the Great Recession 2
 
1.2 Definition of Nonprofit Organizations 3
 
1.3 Characteristics of Nonprofit Organizations 7
 
1.4 Understanding the Language of the Nonprofit Organization 9
 
1.5 Financial Policies 10
 
1.6 Financial Practices 11
 
1.7 Primary Financial Objective 12
 
1.8 Conclusion 17
 
2 Liquidity Management 29
 
2.1 Introduction 29
 
2.2 Noncommercial Nonprofit Organizations 34
 
2.3 Evidence on Liquidity Management in the Nonprofit Sector 37
 
2.4 Facets of Liquidity Management 40
 
2.5 Importance of Liquidity Management 42
 
2.6 What Is the Appropriate Level of Liquidity? 51
 
2.7 Conclusion 54
 
3 Managing Mission, Strategy, and Financial Leadership 59
 
3.1 Value of Strategic Planning 60
 
3.2 What Is Strategic Planning? 61
 
3.3 What Are the Organization's Mission, Vision, and Goals/Objectives? 61
 
3.4 Strategic Management Process 65
 
3.5 Implementing the Strategic Plan 73
 
3.6 Performance Management Systems 78
 
3.7 Strategic Planning Practices: What Does the Evidence Show? 88
 
3.8 Conclusion 89
 
4 Managing Structure, Accountability, and Ethics 93
 
4.1 Financial Tools and Support Structure 93
 
4.2 Organizational Structure and Governance 96
 
4.3 Accountability Structure 122
 
4.4 Ethics 129
 
4.5 Structure, Accountability, and Ethics in Practice 135
 
4.6 New Forms 137
 
4.7 Conclusion 138
 
5 Developing Financial Policies 165
 
5.1 Introduction 165
 
5.2 Financial Policies 176
 
5.3 Putting Policies into Place 189
 
5.4 Establishing Procedures 190
 
5.5 Financial Policies and Procedures in Practice 191
 
5.6 Additional Resources 193
 
6 Understanding Financial Accounting Basics and Financial Statements 201
 
6.1 Introduction 201
 
6.2 Financial Statement Users and Uses 202
 
6.3 Accounting Basics 210
 
6.4 Three Financial Statements 213
 
6.5 The Audit and the Audit Committee 235
 
6.6 Financial Statement Users and Uses in Practice 236
 
6.7 Social Accounting 237
 
6.8 Additional Resources 237
 
7 Developing Financial Reports and Ratios: Making Sense of the Numbers 257
 
7.1 Introduction 257
 
7.2 Major Differences From For-Profit Business Reports 258
 
7.3 Objectives of Financial Reports 263
 
7.4 Reporting System Design 267
 
7.5 Major Reports 268
 
7.6 Internal Reports 268
 
7.7 External Reports 304
 
7.8 Conclusion 306
 
8 Developing Operating and Cash Budgets 333
 
8.1 Introduction 333
 
8.2 Overview of the Budgeting Process 335
 
8.3 Are Nonprofit Organizations Doing Their Budgeting Properly? 336
 
8.4 Developing and Improving Your Budgeting Process 337
 
8.5 Setting the Budgetary Amounts 346
 
8.6 Budget Technique Refinements 357
 
8.7 Cash Budget 363
 
8.8 Managing off the Budget 367
 
8.9 Conclusion 372
 
9 Long-Range Financial Planning and Capital Budgeting 389
 
9.1 Introduction 389
 
9.2 Planning for the Future 391
 
9.3 Financial Evaluation of New and Existing Programs 415
 
9.4 Capital Budgeting: Financial Evaluation of Projects That Arise from Existing Programs 418
 
9.5 Financial Evaluation of Mergers, Joint Ventures, and

Über den Autor / die Autorin

JOHN T. ZIETLOW, D.B.A., CTP, is a professor of finance at Southwest Baptist University, Bolivar, MO, and he also teaches graduate nonprofit financial management at Indiana University-Purdue University at Indianapolis and Indiana University, Bloomington.
JO ANN HANKIN is a nationally recognized consultant in the field of fundraising, and financial/administrative management for nonprofits. ALAN SEIDNER was the founder of Seidner & Company of Pasadena, California, an investment management and consulting firm. He is currently a Senior Consultant for Client Development with the Pyatt Broadmark Real Estate Lending Funds. TIMOTHY J. O'BRIEN, PHD, serves as a practitioner faculty at North Park University, School of Business and Nonprofit Management.

Zusammenfassung

Essential tools and guidance for effective nonprofit financial management

Financial Management for Nonprofit Organizations provides students, professionals, and board members with a comprehensive reference for the field. Identifying key objectives and exploring current practices, this book offers practical guidance on all major aspects of nonprofit financial management. As nonprofit organizations fall under ever-increasing scrutiny and accountability, this book provides the essential knowledge and tools professional need to maintain a strong financial management system while serving the organization's stated mission. Financial management, cash flow, and financial sustainability are perennial issues, and this book highlights the concepts, skills, and tools that help organizations address those issues. Clear guidance on analytics, reporting, investing, risk management, and more comprise a singular reference that nonprofit finance and accounting professionals and board members should keep within arm's reach.

Updated to reflect the post-recession reality and outlook for nonprofits, this new edition includes new examples, expanded tax-exempt financing material, and recession analysis that informs strategy going forward.
* Articulate the proper primary financial objective, target liquidity, and how it ensures financial health and sustainability
* Understand nonprofit financial practices, processes, and objectives
* Manage your organization's resources in the context of its mission
* Delve into smart investing and risk management best practices
* Manage liquidity, reporting, cash and operating budgets, debt and other liabilities, IP, legal risk, internal controls and more
* Craft appropriate financial policies

Although the U.S. economy has recovered, recovery has not addressed the systemic and perpetual funding challenges nonprofits face year after year. Despite positive indicators, many organizations remain hampered by pursuit of the wrong primary financial objective, insufficient funding and a lack of investment in long-term sustainability; in this climate, financial managers must stay up-to-date with the latest tools, practices, and regulations in order to serve their organization's interests. Financial Management for Nonprofit Organizations provides clear, in-depth reference and strategy for navigating the expanding financial management function.

Produktdetails

• Autoren: Jo An Hankin, Jo Ann Hankin, Hankin Jo Ann, Tim O'Brien, Alan Seidner, Alan et al Seidner, Alan G. Seidner, Joh Zietlow, John Zietlow, John Hankin Zietlow, Jt Zietlow, Zietlow John
• Verlag: Wiley, John and Sons Ltd
• Sprache: Englisch
• Produktform: Fester Einband
• Erschienen: 30.04.2018
• EAN: 9781119382560
• ISBN: 978-1-119-38256-0
• Seiten: 768
• Themen: Sozialwissenschaften, Recht,Wirtschaft > Wirtschaft > Betriebswirtschaft; Business & management, Wirtschaft u. Management, Gemeinnützige Einrichtung, Gemeinnützige Organisationen / Finanz- u. Rechnungswesen, Non-Profit Organizations / Finance & Accounting