Nonprofit financial management is the first step in ensuring that your nonprofit organization is in good fiscal health.
Proper Nonprofit Financial Management
While nonprofits are mission critical, what can be the death toll for your nonprofit is not having a clear and concise business model, not building adequate cash reserves, not having good financial management, not having good checks and balances, and not having well-trained employees and volunteers. To be a successful nonprofit, you need all of those elements, and with the Nonprofit Financial Management Course from Araize, you can take the first steps to achieve transparency, accountability and sustainability for your nonprofit.
As a nonprofit bookkeeper, accountant or financial manager you need to have an understanding of the complexities of proper nonprofit financial management. With more than 37 years of experience auditing, consulting and providing software solutions to nonprofits, Araize has compiled a comprehensive course to provide you with knowledge and tools you need to make your organization stronger financially and become proper stewards of your nonprofit’s funds.
What You Need to Know
To be a good steward of your mission you must start with sound financial accounting principles that will help you understand and prepare meaningful financial statements. At some point you will be asked to prepare grant proposals for your programs, prepare financial statements for the board, reconcile your bank statements, create a cost projection by program for the next year and prepare for your year end processing. In order to accomplish those tasks, you must have an understanding on nonprofit accounting and financial management. With this knowledge, you and management will have the information needed to make better stewardship decisions.
Here are a few reasons why you should invest the time to take the Nonprofit Financial Management Course from Araize.
- Board Accountability
Good financial reporting is the key for transparency for your organization and is expected by funders, donors and your constituents. They will have access to information on your organization from various online sources, and if you don’t have solid, dependable reporting and current numbers both funders and donors will question your ability to fulfill your mission. It is also important for internal reporting to measure the effectiveness of your mission from a financial standpoint. Transparency is no longer an option. You need to have the knowledge that helps you prepare and present financial statements that reflect your mission effectiveness from a financial perspective.
Your Board of Directors are the fiduciaries of your nonprofit and depend on good financial reporting. They require accurate reporting of financial information and you need the knowledge to prepare statements that will help them uphold their responsibilities.
More so than ever, information about your organization is easily visible and accessible to the general public. Your IRS 990’s can be accessed from many websites, plus your website should include your more recent financial statements with clear and concise reports measuring outcomes financial and how it has impacted your mission.
Every nonprofit requires financial resources to fulfill its mission. If you are not accurately reporting on what each of your programs is costing, then you will not know if you have a sustainable mission. Proper nonprofit financial reporting gives you the information you need to make the critical decisions necessary to measure outcomes against financial realities and to determine if your mission is sustainable given the current and future resources in place.
Essential Building Blocks
The Nonprofit Financial Management curriculum provides you with the important building blocks necessary to be an efficient nonprofit financial manager with topics covering the set up of your financial systems, creating a budget, managing cash, reconciling accounts, proper recording and classification of revenue and expenses and the preparation of financial statements.
Knowledge of nonprofit financial management is a key component of good stewardship. Make sure you are prepared to be the best fiscal manager for your nonprofit to be responsive to financial inquiry, whether from inside or outside your nonprofit. Make sure you are right for the job.
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