Relevant for both large and small nonprofit organizations, Cash & Investment Management for Nonprofit Organizations effectively brings practical clarity to a potentially complicated topic, and explains how to use the best available methods and tools to help your organization achieve and maintain financial strength. This must–have book equips readers with a road map toward sound financial structure and strong internal controls, expertly offering helpful advice on everything financial officers need to know, including:
Knowing the appropriate financial target for your organization
The measures you can use to monitor and manage your organization′s liquidity
Preserving your organization′s financial integrity through internal controls
How to tap sources of cash to improve your cash flow
Making the most of your greatest potential ally in managing cash your banking partner
Mobilizing and controlling cash
Disbursing cash efficiently while averting fraud
Harnessing information technology (IT) to better accomplish cash and investment management
Investing policies and practices for cash reserves
Investing policies and practices for endowments and other long–term investment purposes
Written by financial professionals for financial professionals, Cash & Investment Management for Nonprofit Organizations provides essential tips and proven financial methods for improving and benchmarking your organization′s practices. Discover how to become more effective in keeping your nonprofit financially healthy with the techniques and tools in Cash & Investment Management for Nonprofit Organizations.
CHAPTER 1: CASH FLOW AND YOUR CASH POSITION.
1.1 Life in the Nonprofit Finance Office.
1.2 Target Liquidity as the Primary Financial Objective.
1.3 Setting Your Liquidity Target.
1.4 How Do Proficient Cash Management and Investment Management Enable Your Organization to Achieve Its Liquidity Target?
CHAPTER 2: CASH PLANNING AND LIQUIDITY.
2.1 Cash Flow Characteristics of Nonprofits.
2.2 Cash Shortfalls and What to Do about Them.
2.3 Tiers of Liquidity and the Spectrum of Liquidity.
2.4 Measuring and Managing Solvency, Liquidity, and Financial Flexibility.
2.5 Managing Cash Flow.
2.6 Cash Budgeting.
CHAPTER 3: CASH COLLECTIONS AND POSITIONING.
3.2 Objectives of Cash Collections and Positioning Systems.
3.3 Front End of Collections: Receivables Management.
3.4 U.S. Payments System.
3.5 Expediting Check Collections.
3.6 Accepting Card Payments.
3.7 Accepting Electronic Payments.
3.8 Comparison of Alternative Collection Systems.
3.9 Cash Positioning.
3.10 International Cash Collections and Concentration.
3.11 Fraud Issues.
3.13 Benchmarking and Outsourcing.
CHAPTER 4: CASH DISBURSEMENTS.
4.2 Objectives of Cash Disbursements Systems.
4.3 Disbursements Policy.
4.4 Checks and Drafts.
4.5 Purchasing/Procurement Cards.
4.6 Other Electronic Payments.
4.7 Comparison of Alternative Disbursement Systems.
4.8 Establishing Your Banking Network: Products and Services to Consider.
4.9 Fraud Prevention and Internal Control.
4.10 International Cash Disbursements.
4.12 Outsourcing Disbursements or Payables.
CHAPTER 5: BANKING RELATIONSHIP MANAGEMENT.
5.2 Objectives for Your Banking Relationship.
5.3 Communicating with Your Bank.
5.4 Services Provided by Banks.
5.5 Depository Services and the Availability Schedule.
5.6 Bank Selection.
5.7 Managing Bank Relationships.
5.8 Nonbank Service Providers.
5.9 Information Services.
5.10 Banking Globally.
5.11 Bank Report Cards.
5.12 Cash Management Audits.
CHAPTER 6: DEBT MANAGEMENT.
6.2 Objectives of Debt Management.
6.3 Debt Policy.
6.4 Short–Term Borrowing.
6.5 How a Bank Views a Nonprofit Borrowing Request.
6.6 Debt Management Metrics and Benchmarks.
CHAPTER 7: INVESTING PRINCIPLES AND PROCEDURES FOR
OPERATING AND STRATEGIC RESERVES.
7.2 Managing Liquidity Funds and Optimizing Return on Excess Short–Term Working Capital.
7.3 Criteria for Investing.
7.4 Investor or Speculator?
7.5 Standard Operating Investment Procedures.
7.6 Investment Operations: An Introduction.
7.7 Introduction to Yield Analysis.
7.8 Yield Curve Analysis.
7.9 Yield Spread Analysis.
7.10 Price Movement of Fixed–Income Securities.
7.11 Effect of Changing Interest Rates on Longer Maturities.
7.12 Summary of Yield Curves.
7.13 Fixed–Income Investment Instruments: An Introduction.
7.14 U.S. Treasury Securities.
7.15 U.S. Government Agency Securities.
7.16 Municipal Debt Instruments.
7.17 Corporate Debt Instruments.
7.18 Money Market Instruments Issued by Banks and Investment Companies.
7.19 Repurchase Agreements.
CHAPTER 8: INVESTING PRINCIPLES AND PROCEDURES FOR
ENDOWMENT, SELF–INSURANCE, AND PENSIONS.
8.2 Endowment Management.
8.3 Characteristics of Endowment.
8.4 Endowment Investment.
8.5 Principles of Endowment Management.
8.6 Endowment Spending Policy.
8.7 Self–Insurance and Pensions.
8.8 Investment Advisors.