Nonprofit Financial Planning Made Easy provides proven and practical techniques to improve your nonprofit's financial planning. Drawing upon her extensive experience in the financial management of nonprofits, author and nonprofit financial expert Jody Blazek:
- Discusses how to structure your organization for fiscal strength
- Arms readers with easy–to–use procedures that make financial management a more streamlined and effective process
- Describes reliable methods for maximizing resources
- Provides worksheets, forms, and checklists to enable nonprofits to manage their organization's precious financial resources
- Enables nonprofit professionals to evaluate financial reporting systems, GAAP and FASK, internal controls and the auditing process
- Covers major functional issues in financial planning including roles and responsibilities, budgeting, asset management, and financial analysis
Nonprofit Financial Planning Made Easy is a must–read for directors, managers, trustees, accountants, lawyers, and anyone involved in the financial livelihood of a nonprofit organization. Written in the light of increased scrutiny and accountability of nonprofits, this indispensable book coaches readers in the essentials of financial planning and supplies easy–to–use tools, concepts, and techniques for the financial management of nonprofits of every size and type.
Chapter One. Introductory Concepts.
How To Use This Book.
Attributes Of Nonprofits.
Can Nonprofits Profit?
Meaning Of Profit.
Why Seek A Profit?
Difference Between Nonprofits And For–Profits.
Capitalization: Philanthropists Versus Investors.
Revenues: Constituents Versus Customers.
Pursuit Of Financial Success: Some Observations.
Be Realistic About Expectations.
Make Use Of Intangible Resources.
Nonprofit Mentality Is Often Penny Wise And Pound Foolish .
Financial Accounting For Nonprofits Is Different.
Producing An Audit Trail Benefits The Organization In Many Ways.
Enhancing Computer Capabilities May Not Cure Financial Ills.
Respect The Organizational Structure Or Change It.
Know Who′s In Charge.
Economic Conditions Must Be Anticipated.
Long–Range Planning Is Indispensable.
Know Why The Nonprofit Organization Has Tax–Exempt Status.
Comprehensive Financial Planning Checklist.
Chapter Two. Structuring The Organization For Fiscal Strength.
Establishing The Hierarchy.
The Role Of The Board.
Standards For Directors.
Impact Of Sarbanes–Oxley.
A Director′s Duties.
Reviewing Financial Reports.
Filling Board Positions.
Staff Representation On The Board.
Compensation For Board Service.
Number Of Directors.
Role Of The Treasurer And The Cfo.
Inside And Outside Accountants.
Financial Management Team.
Defining Inside And Outside Accountants.
Selecting Financial Reporting Services.
Understanding The Auditing Process.
When To Audit.
Review And Compilation Processes.
Requests For Proposals For Accounting Services.
Chapter Three. Financing The Dream.
Balancing Mission And Finances.
Defining The Mission.
Assessing The Resources.
Making Micro Resource Decisions.
Macro Resource Analysis.
Chapter Four. Budgeting.
Budget Planning Issues.
Zero Basis Versus Incremental.
Types Of Budgets.
Advantages And Disadvantages.
Who Participates In Budgeting?
Selling The Budget.
Budget Policy Manual.
Communicating The Process.
Scheduling Budget Process.
Changing Budget Midyear.
Donations And Memberships.
Service Delivery Fees.
Grants And Contracts.
Statistical Operational Data.
Sample Customer Survey.
Capital Additions Budget.
Proposed Overall 20xx Budget Compared To 20xx Actual.
Functional Revenue And Expense Budget.
Member Services Budget Worksheet.
Budget Increases (Decreases) Projected For 19x7.
Program Cost Analysis.
Other Reports And Analysis.
A Budgeting Checklist.
Chapter Five. Asset Management.
Cash Flow Planning.
Understanding CPA′s Cash Flow Statement.
Designing Cash Flow Budgets.
Beyond Cash Flow Imbalances.
More Money In The Bank.
To Borrow Or Not.
Prudent Investment Planning.
Facing The Unknown.
Risk Versus Return.
Measuring Investment Return.
Isolating Restricted Grants.
Who Gets The Appreciation?
To Mark It To Market?
How Income Is Measured.
Endowment And Restricted Fund Checklist.
Chapter Six. Nonprofit Accounting.
What Is Accounting?
Cash Receiving Systems.
Cash Disbursement Systems.
Payroll Disbursment System.
Other Useful Ledgers And Financial Files.
Chart Of Accounts.
Functional Expense Categories.
Why A Double Entry?
Choosing A Method.
Advantages Of Cash Method.
Why Use The Accrual Method?
Design Of The Financials.
Fasb, Gaap And Nonprofits.
Specific Standards For Nonprofits.
Other Nonprofit Reporting.
Chapter Seven. Special Financial Tools.
Financial Indicators To Critique Performance.
Economies Of Scale.
Techniques For Capturing Costs.
Cost Allocation Methods.
How Much Paper Work?
Measuring Lifetime Cost.
To Lease Or To Buy.
Affiliations And Agency Agreements.
Who′s An Employee?
Chapter Eight. Obtaining And Maintaining Tax–Exempt Status.
Characteristics Of Tax–Exempt Organizations.
Theoretical Basis For Exemption.
Categories Of Exemption.
Understanding The Nonprofit s Legal Form.
Testing Suitability For Tax–Exemption.
Why A New Nonprofit?
What Category Of Exemption?
How Is Money To Be Raised?
Will Insiders Benefit?
Where Will Assets Go?
Maintaining Recognition Of Exempt Status.
Role Of Internal Revenue Service.
JODY BLAZEK (Houston, TX) is a partner in Blazek & Vetterling, LLP, a Houston–based CPA firm providing tax compliance and auditing services to tax–exempt organizations and tax consulting services to other accountants and lawyers who serve nonprofits.?The?author?worked with the 1023 Revision Task Force, is currently on the 990 Revision Task Force, and is past chair of the AICPA Exempt Organization Resource Panel. Jody serves on the Transparency and Financial Accountability Work Group of the Panel on the Nonprofit Sector of Independent Sector. She is a member of the Exempt Organization Tax Review and the AICPA Tax Adviser advisory boards. She is founding director of the Texas Lawyers and Accountants for the Arts and the Houston Artists Fund. Her focus on tax–exempts began in 1969 when, at KPMG, she advised private foundation clients about the significant changes in the tax rules. She gained nonprofit industry experience as the treasurer of the Menil Interests before returning to public practice in 1980 to form the firm she now serves.