Nonprofit Accounting Basics

Financial Management

A Picture is Worth a Thousand Numbers

Not surprisingly, many nonprofit board members do not fully understand financial statements—despite the fact that understanding those statements is key to good governance.

About Operating Reserves for Nonprofits

About Operating Reserves" - What are they and why have them?

Assessing Fraud Risk

One question I frequently ask nonprofit organizations I speak to is, “What processes are in place for identifying, responding to, and monitoring fraud risks?” Most times, the response describe

Budgeting and Financial Planning

Effective financial management is an ongoing process that features a cycle of good management habits.

Budgeting for Capital

An organization's financial plans should include budgets for operations and for capital.  Together these comprise what I refer to as an Organizational Budget.

Capital Budgets Play an Important Role in Nonprofit Planning

Annual operating budgets for nonprofit organizations will always be center stage, drawing the attention of senior management, Board, and staff.

Choosing the Right Commercial Checking Account for your Nonprofit

Throughout the year, nonprofit organizations review their processes for improvement, cost savings, and areas where they can create greater operational efficiencies.

Debt to Assets Ratio

This is one of many leverage ratios used to determine the financial viability of an organization.

Designing a Four Star Dashboard

In a previous article, we described the importance of including multiple internal stakeholders when selecting and implementing an Association Management System (AMS).

How Can I Explain the Bottom-Line Budget Impact of Multi-Year Grants?

Question: I am the Executive Director of a nonprofit organization that was recently awarded a 3-year grant. We recorded the grant in full last year.

How Nonprofits Can Better Manage Overhead Expenses

Managing a nonprofit organization’s overhead (management and general) expenses is just as important as managing program and fundraising expenses. Most nonprofits would not dispute this statement.

Internal Controls for Medium and Large Non-Profits-Part II

Internal Controls for Medium and Large Non-Profits-Part II, which is presented by Shawn Miller of Calibre CPAs, continues the discussion relating to controls that can be implemented to mitigate the

Internal Reports Introduction

Reporting is a key component of the Financial Management Cycle.

Is It Time to Be Proactive with Your Office Lease Situation?

A familiar scenario has played out month after month for many nonprofit organizations during this prolonged period of financial uncertainty, remote work, and virtual programs and meetings.

Looking at the Nonprofit Financing Puzzle!

If you’re like most nonprofit leaders, you may have considered or even taken steps towards evaluating financing alternatives for your nonprofit organization.

Managing Information Technology - The Case for Outsourcing

The term “outsourcing” can have negative connotations, but for many nonprofit organizations it can be an effective tool to help move the organization forward.

Net Investment in Fixed Assets

This calculation subtracts any existing long-term debt related to fixed assets (e.g., vehicle loan, mortgage, leasehold improvement loan, etc.) from the value of fixed assets.

Nonprofit Accounting: Serving the Mission

Though not usually involved in customer service to donors or members, the accounting and finance department of a nonprofit often provides customer service to the rest of its organization.

Nonprofit Operating Reserves Initiative Website

Beginning November 1, 2017 the NonprofitAccountingBasics.org website added an important new resource it its “Fundamentals” section.

Operating Reserve Ratio

This ratio is a focused variant of the Months Cash on Hand ratio.

Outsourced Accounting Services

Outsourcing is a contract with a third party to perform services which are normally done in-house. These services typically are provided by companies who specialize in the field.

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