Finance Indicators & Functions for Nonprofits
Sound nonprofit financial management is one of the biggest keys to success for any nonprofit organization. Your needs will vary considerably based on the size of your organization, scope of your mission and sources of income.
That said, two things never change: Whether you have one employee or 1,000, your organization will need accurate bookkeeping and committed, credible oversight. With those in place, you’ll be in a better position to maintain your 501©(3) status, raise and manage necessary funds, and protect the resources needed to deliver on your mission.
How can the Finance section help?
This section is designed to guide you through an overview of key accounting indicators and functions as they relate to nonprofits. We also outline important regulatory, governance and tax considerations. Even if numbers aren’t your thing, the topics discussed here should give you a good sense of the areas to explore with your bookkeeper, accountant and board.
The information contained on this site is general in nature and may not be applicable to all situations. In addition, laws change. You should refer to the most current editions of additional resources listed for each topic and consult with an attorney or accountant on important matters.
Learn what factors to consider in determining the financial health of your nonprofit. Continue reading
Find out why a sound budget is vital to the success of your organization and how to render a budget that’s unique and appropriate to your needs. Continue reading
The IRS requires specific reporting of “functional expenses” for nonprofits, learn what tools are valuable in nonprofit accounting and how those differ from for-profit organizations. Continue reading
A Statement of Financial Position, Statement of Activity, Statement of Cash Flow are just a few of the necessary disclosures that need to be prepared by your nonprofit. Continue reading
Though the term audit makes many people apprehensive, certain audits are required of your nonprofit. Continue reading
Forms and filing requirements for nonprofits can be daunting, learn what’s expected with our simple, comprehensive guide. Continue reading
Internal controls are a necessary part of the financial health of a nonprofit organization. Learn how the Sarbanes-Oxley Act, passed at the federal level, inspired state laws that impact your organization. Continue reading
Discover the questions your board of directors should answer in setting investment policies for your organization. Continue reading
Find out the revisions on the new 990 tax forms and how they apply to your organizations. Continue reading
Develop strategies for creating a cash reserve fund to promote the growth of your nonprofit. Continue reading