Accounting for Fundraising Expenses

It goes without saying that, for many nonprofits, fundraising is a crucial element towards achieving its goals. Not only does fundraising generate revenue to support mission-critical programs, it can also provide a valuable opportunity to raise awareness for your cause. Guaranteeing your organization’s success beyond the next quarter requires careful planning and prioritizing, as well…

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5 Best Practices for Nonprofit Budgeting

One of the biggest challenges for nonprofit organizations is sustainability. Staying afloat during uncertain times can be especially tough without a proper financial plan in place. A carefully planned budget can help NPO’s maintain and improve their operations and even refocus their goals and objectives when challenges arise. Think of a budget as a roadmap that will guide your decisions on how…

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5 Key Tips to Successful Nonprofit Financial Management

By adopting nonprofit financial management best practices, organizations can optimize their present and protect their futures. Following a few key steps can make a big difference in the performance of a nonprofit, giving it the stability and flexibility needed to deliver on its goals and achieve its missions. Following financial management best practices also protects nonprofits from making costly mistakes or taking actions that compromise the organization’s integrity. While it is impossible to…

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The PBC Audit Checklist—and Why You Need One

If you’re getting close to an annual audit, you’ve probably heard the term “PBC”—but what is it and what does it mean?  First, it is important to understand what an audit REALLY is.  So many organizations view an audit as an opportunity to issue financial statements.  It’s not uncommon to even refer to the audited financials as the auditor’s financials when, actually, it is the responsibility…

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The Importance of Accounting Manuals

Accounting manuals are key to any organization, regardless of the type. Although the task of creating an accounting manual might seem daunting, it is a worthwhile endeavor. This blog post will explore the benefits and identify the key components of an accounting manual and as an added bonus you can download a typical table of…

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The Importance of Nonprofit Internal Controls

Internal controls are a must for nonprofit organizations. It should be a priority to establish proper internal controls from the start to ensure that assets are protected, and risks are mitigated. NPOs often struggle with limited staff and resources, which makes them particularly vulnerable to the risk of fraud or mishandling of funds.  Nonprofit leaders,…

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Nonprofit Accounting Basics: What Are Functional Expenses?

If you have ever wanted to expand your knowledge of nonprofit accounting basics, learning about functional expenses is a great place to start. Nonprofits have unique reporting requirements that set them apart from for-profit businesses. One of these reporting requirements is presenting an analysis of natural expenses by function – most commonly through the Statement…

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Cash Flow Management for Nonprofits

Cash flow management in any organization is nothing more than the mix and timing of cash receipts and cash payments.  In its most simplistic form, it is cash in and cash out and, ultimately, it is where budgets, projections and forecasts meet reality. It is critical to ensuring that funds are available to pay the…

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The Importance of Investment Policies

5 Steps for Nonprofits to Develop a Wise Investment Policy Nonprofit boards have a fiduciary responsibility to protect the organization’s assets and ensure that they’re used to further the mission.  Often, an important part of the board’s responsibility is deciding how to invest the nonprofit’s cash. That requires implementing a sound investment policy that balances…

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