Finance Fundamentals for Nonprofits - Building Capacity and Sustainability

Informationen zum Autor WOODS BOWMAN, PHD, is a Professor of Public Service at DePaul University who brings to the classroom a range of experience in public finance and a passion for ethical governance. He is the former CFO of Cook County, a former member of the House of Representatives, Illinois General Assembly, from 1977?1990, and former chair of the Appropriations II Committee. He is a board member of the Association for Research on Nonprofit Organizations and Voluntary Action. He received the Chairman's Award from Goodwill Industries International for his service to a local affiliate. His articles have appeared in Nonprofit Management and Leadership and Nonprofit and Voluntary Sector Quarterly . In addition, Dr. Bowman writes a column on ethics for the Nonprofit Quarterly . Klappentext What is the nonprofit equivalent of profit? Should nonprofits try to maximize it, the way businesses strive to boost revenue? Rich with practicality, Finance Fundamentals for Nonprofits: Building Capacity and Sustainability clearly lays out the best practices and solid finance principles you need to understand the business of being nonprofit. Public finance expert Woods Bowman starts by looking at the two essential dimensions of financial health? capacity , an ability to do things and withstand unexpected shocks, and sustainability , the maintenance of financial capacity?explaining how to measure your nonprofit's financial capacity in different time frames and then measure its ability to sustain that capacity. Along with a companion website featuring a variety of online tools, this hands-on guide explores topics, including: Accrual accounting, highlighting treatment of non-commercial (alternative) income The legal and management issues an endowment raises How to configure budgets to conform to nonprofit accounting rules Reconciling budgets with both financial statements and the IRS Form 990 How federal tax law classifies tax-exempt institutions Ordinary service providers Membership associations Endowed service providers Grantmakers How producers of goods and services can improve sustainability through revenue management The ethical duties of nonprofits Filled with real-world case studies, this user-friendly, jargon-free guide uniquely blends business and public service perspectives on nonprofit financial management, providing you with the know-how and confidence you need to establish the financial capacity your nonprofit's mission requires?and sustaining it over time. Zusammenfassung A complete guide to the financial requirements a nonprofit organization must follow to indefinitely maintain the volume and quality of their services An organization may have plenty of capacity in the long run, but in the short run, donor restrictions and limited financing options are constraining. Inhaltsverzeichnis Preface ix Acknowledgments xi Chapter 1 Introduction: How Nonprofits are (and are Not) Like Businesses 1 What are Nonprofits? 2 Why are There Nonprofits? 4 Nonprofits as Businesses 5 Advantages and Disadvantages of Being Nonprofit 8 This Book's Agenda 11 Concluding Thoughts 14 Chapter 2 Accounting: Measuring Past Performance 15 Basis of Accounting and Audits 16 Statement of Financial Position 17 Statement of Activities 20 Other Statements and Notes 26 What to Look For 27 IRS Form 990 30 Concluding Thoughts 31 Chapter 3 Investing: Looking to the Future 33 Investing 33 Endowment 39 Values-Centered Investing 42 Concluding Thoughts 46 Appendix 47 Chapter 4 Budgeting: Taking Control of the Present 49 Budgeting Practices 49 Budget Structure 53 Reconciling Budgets and Financial Statements 55 Reconciling Budgets and IRS Form 990 63

List of contents

Preface ix
 
Acknowledgments xi
 
CHAPTER 1 Introduction: How Nonprofits Are (and Are Not) Like Businesses 1
 
What Are Nonprofits? 2
 
Why Are There Nonprofits? 4
 
Nonprofits as Businesses 5
 
Advantages and Disadvantages of Being Nonprofit 8
 
This Book's Agenda 11
 
Concluding Thoughts 14
 
CHAPTER 2 Accounting: Measuring Past Performance 15
 
Basis of Accounting and Audits 16
 
Statement of Financial Position 17
 
Statement of Activities 20
 
Other Statements and Notes 26
 
What to Look For 27
 
IRS Form 990 30
 
Concluding Thoughts 31
 
CHAPTER 3 Investing: Looking to the Future 33
 
Investing 33
 
Endowment 39
 
Values-Centered Investing 42
 
Concluding Thoughts 46
 
Appendix 47
 
CHAPTER 4 Budgeting: Taking Control of the Present 49
 
Budgeting Practices 49
 
Budget Structure 53
 
Reconciling Budgets and Financial Statements 55
 
Reconciling Budgets and IRS Form 990 63
 
Concluding Thoughts 64
 
CHAPTER 5 Nonprofits in History and Tax Law: Why Nonprofits Do What They Do 65
 
Classification 66
 
Unrelated Business Income Tax 75
 
Intermediate Sanctions 76
 
Lobbying and Political Action 78
 
State Law 79
 
Concluding Thoughts 80
 
CHAPTER 6 Ordinary Service Providers: Serving the Public Today 81
 
Long-Term Objective: Maintaining Services 82
 
Short-Term Objective: Resilience 85
 
Current Objective: Paying Bills 89
 
Application 90
 
Benchmarking 91
 
Concluding Thoughts 94
 
Appendix 94
 
CHAPTER 7 Membership Associations: Serving People with a Common Purpose 97
 
Membership Associations 98
 
Cooperatives 101
 
Capacity and Sustainability 103
 
Two Applications 104
 
Concluding Thoughts 105
 
Appendix: ASAE/CAL Metrics of Financial Capacity for Membership Associations 106
 
CHAPTER 8 Endowed Service Providers: Serving the Next Generation, Too 107
 
Introduction 108
 
Long-Term Objective: Maintaining Services 111
 
Short-Term Objective: Resilience 113
 
Current Objective: Paying Bills 115
 
Application: Famous University 116
 
Building an Endowment 117
 
Concluding Thoughts 119
 
CHAPTER 9 Grantmaking Organizations: Serving Service Providers 121
 
Foundation Types 122
 
Financing Models 123
 
Capacity and Sustainability 126
 
Illustrations 131
 
Concluding Thoughts 131
 
Appendix: S&P Metrics of Financial Capacity for Grantmakers 133
 
CHAPTER 10 Beyond Sustainability: Managing Revenue to Maximize Growth 135
 
Revenue Sources 135
 
Theories of Revenue Compensation 139
 
Application 144
 
Unfair Competition 145
 
Concluding Thoughts 146
 
CHAPTER 11 The Nonprofit Difference: Doing Good Well 149
 
Control Environment 150
 
Being Businesslike 153
 
Concluding Thoughts 158
 
Notes 159
 
Glossary 173
 
References 187
 
About the Web Site 201
 
About the Author 203
 
Index 205

Product details

• Authors: Bowman, W Bowman, Woods Bowman, BOWMAN WOODS
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 09.08.2011
• EAN: 9781118004517
• ISBN: 978-1-118-00451-7
• No. of pages: 288
• Dimensions: 165 mm x 241 mm x 25 mm
• Series: Wiley Nonprofit Authority; Wiley Nonprofit Authority
• Subjects: Non-fiction book > Nature, technology > Nature and society: general, reference works; Social sciences, law, business > Business > Management; Business & management, Budgeting and financial management, Wirtschaft u. Management, Gemeinnützige Einrichtung, Gemeinnützige Organisationen / Finanz- u. Rechnungswesen, Non-Profit Organizations / Finance & Accounting