Streetsmart Financial Basics for Nonprofit Managers
Wiley Nonprofit Law, Finance, and Management Series
4. Edition April 2016
368 Pages, Softcover
Practical Approach Book
Short Description
Expert financial consultant and author Tom McLaughlin provides effective, easy-to-use tips, tools, resources, and analyses for nonprofit financial management basics in this fourth edition of Streetsmart Financial Basics for Nonprofit Managers. This book is an accessible resource for nonprofit executives, board members, students, and those new to the field. It forgoes useless, pretentious verbiage in order to outline real-world strategies that work.
* New insights, updates, vignettes, case studies, and examples to deal with the implications of nonprofit financial management
* An examination of nonprofit business models in relation to growing demands from the government and other funders
* How to construct business plans for virtually any nonprofit entity
* Customizable resources--including financial worksheets, forms, and Excel templates to help nonprofit managers complete their day to day assignments
* A guided tour through common aspects of nonprofit management, such as financial analysis, accounting, and operations
Practical and informative, Streetsmart Financial Basics for Nonprofit Managers is the go-to financial management reference for nonprofit managers, boards of directors, and funders.
The complete guide to the basics of nonprofit financial management
Let's be honest. Most books about financial management are densely written, heavy on jargon, and light on practicality. Expert financial consultant and author Tom McLaughlin takes a different approach with his fourth edition of Streetsmart Financial Basics for Nonprofit Managers. This comprehensive guide provides effective, easy-to-use tips, tools, resources, and analyses.
The light, humorous tone in Streetsmart Financial Basics for Nonprofit Managers makes it an accessible resource for nonprofit executives, board members, students, and those new to the field. This book forgoes useless, pretentious verbiage in order to outline real-world strategies that work. This edition includes:
* New insights, updates, vignettes, case studies, and examples to deal with the implications of nonprofit financial management
* An examination of nonprofit business models in relation to growing demands from the government and other funders
* How to construct business plans for virtually any nonprofit entity
* Customizable resources--including financial worksheets, forms, and Excel templates to help nonprofit managers complete their day to day assignments
* A guided tour through common aspects of nonprofit management, such as financial analysis, accounting, and operations
Practical and informative, Streetsmart Financial Basics for Nonprofit Managers is the go-to financial management reference for nonprofit managers, boards of directors, and funders.
Part One
Chapter 1 Structure of Nonprofit Organizations
Corporations
Programs
Hybrid Corporations
Loss of Tax-Exempt Status--The Monster Within
Chapter 2 Mission: Managing Your Two Bottom Lines
The Role of a Value System
The Nonprofit's Dilemma and How to Solve It
Chapter 3 Accounting as a Second Language--A Nine-Point Program
The Entity Principle
Money Measurement
Conservatism Principle
The Cost Concept
The Materiality Principle
Going Concern
Dual Aspect
Realization Principle
Matching Principle
Chapter 4 Assets Are for Boards, Activities Are for Managers
Concepts vs. Details
Boards Invest, Managers Spend
If It Has to Be Decided Today, It's Probably the Wrong Question
Boards Own the Controls, Managers Implement Them
Chapter 5 Balance Sheets: How They Get That Way
Current Assets
Noncurrent Assets
Current Liabilities
Noncurrent Liabilities
Making the Balance Sheet Dance
Transparency, Thy Name Is IRS Form 990
What to Do
Chapter 6 Financial Analysis: A Few Analytical Tools
Financial Statement Analysis for Math Phobics
Current Ratio
Days' Cash
Days' Receivables
Cash Flow to Total Debt
Debt to Net Assets
Operating Margin
Accounting Age of Plant/Equipment (or Land, Buildings, and Equipment)
A Footnote
Chapter 7 Beyond the C3: Alternate Corporate Structures
Commonly Available Structures
Part Two Accounting
Chapter 8 Nonprofit Accounting: Acknowledging the Strings Attached
Net Asset Categories
Other Provisions
What It All Means
Chapter 9 Cost Accounting: How Much Does It Cost?
A Form of Management Accounting
Indirect Costs
Certain Support Costs Get Assigned to Other Support Costs
Breakeven Analysis -- Another Use for Cost Data
Cost Accounting Vs. Cost Reporting
Chapter 10 Auditing: Choosing and Using an Auditor
Audit, Review, and Compilation
The Auditor Market
Getting Value from the Audit
Conclusion
Part Three Operations
Chapter 11 Cash Is King* Up the Balance Sheet
How Much Cash Is Enough?
Conclusion
Chapter 12 Capital: Not a Four-Letter Word
Sources of Capital
The Mechanics of Capital Financing
The Present Value of Money
The Great Divide among Nonprofits
Future Access to Capital Markets
The Role of Net Assets
Strategic Capital Management
Chapter 13 Budgeting: Taming the Budget Beast
Expenses
Conclusion
Chapter 14 Indirect Costs and Other Despised Items
Rules Govern Audits, Economics Rule Budgets
Still, It's Low That Counts
Secrets of the Indirect Cost Game
Chapter 15 Danger Zone: Cost Reimbursement Programs
If they wanted to be accurate, certain funders would put this in writing:
How They Work
The Danger Zone
Chapter 16 Managing Money-Losing Programs
The Origin of the Problem
Solutions
Other Sources of Value
Ding Ding Ding Ding Ding!
Chapter 17 The Milestones of Spending on Overhead Costs
Chapter 18 Pricing: How Much Should It Cost?
Pricing Methodologies
Going the Other Way--Contractual Adjustments and Subsidies
Pricing Strategies
How to Price
Chapter 19 Profit: Why and How Much?
Profit Defined
Uses of Profit
Profit--How to Get It
What Can Be Done
Chapter 20 To Raise More Money, Think Cows
Donations
Bequests--Cow to Charity
Charitable Remainder Trusts--Milk to Beneficiaries, Cow to Charity
Pooled Income Funds--Donors Put Their Cows in a Herd, Keep Rights to Milk
Chapter 21 Owning a Building: What's in it for You?
A Three Part Calculation
Chapter 22 Insurance: The Maddeningly Complicated Art of Covering Your Assets
To Insure or Self-Insure?
Risk Management
Captive Insurance Companies
Quality Assurance in Disguise
Chapter 23 Internal Controls for External Goals
The Elements of Internal Control
How to Monitor the System
Maintaining the System
Conclusion
Chapter 24 Scrutiny Intensifies
Some Predictions
The Growing Industry of Charity Watching
Chapter 25 Management Controls: Toward Accountability for Performance
Management Controls Circa 1980
Beyond Management Controls in the Twenty-First Century: How to Do It
Messages
How to Prepare - Changes in the CFO Role
It's Called Accounting for a Reason
Appreciate the Abrupt Change
Frame the New Role
Repetition is Key
Meet Your New CFO
Chapter 27 Finance is Oil, Development is Water
It's All About Time
The Fix
Chapter 28 When do You CFO?
DIY
The Financial Tasks Multiply
Chapter 29 Business Models and Business Plans
First the Model, Then the Plan
How to Build Your Business Model
What, Exactly, is a Business Plan?
What is in a Business Plan (Usually . . . )
Startup Nonprofits
The Re-Structuring Nonprofit
New Program or Division
Goals Drive the Plan
Chapter 30 How to Beat the Next Recession
Understand the Demand Pattern for Your Services
Prepare for Reductions -- in New Services
Anticipate Foundation Behavior
Proactively Communicate With Your Staff
Consider Repurposing Your Reserves
Stay Calm
Appendix A
A Financial Management Cultural Primer
Chapter 1
Chapter 2
Chapter 3
Chapter 5
Chapter 6
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 13
Chapter 15
Chapter 16
Chapter 18
Chapter 25
Chapter 27
Appendix B
Budget Bloopers
Appendix C
Using the Website: Table of Contents with Commentary
Part One: Analysis
Part Two: Accounting
Part Three: Operations
Part Four: Control
Introduction
System Requirements
Using the Files
User Assistance