Program Objectives
This program’s goal is to understand the crucial role good financial management plays in a nonprofit’s accomplishment of its stated mission. Through hands-on, applied study, participants will explore key elements of nonprofit financial management.
In order to help participants improve their skills in reading and understanding nonprofit financial statements, the program begins with an examination of these statements, using audits of several nonprofits.
Building on those skills, participants will learn about the importance of timely and accurate financial reports, and about how to use those reports to make more informed decisions for the organization. We will also explore analytical tools, such as financial ratios, so that participants may gain a better understanding of their organizations’ financial health and operating efficiency.
The IRS Form 990 is a key report that nonprofits must submit annually to the Internal Revenue Service. We will explore the contents of the IRS Form 990—and will also discuss how this report can be used not only to improve communication with supporters and funders, but also to improve financial management in general.
Nonprofit leaders must be able to construct an annual operating budget. In doing so, they will ensure that resources are properly allocated to maximize programmatic output and to position the organization for long-term success. Using a case study, participants will construct an operating budget during a program session.
Finally, the program will focus on management of the organization’s cash resources. Using a case study, participants will engage in decision-making scenarios focused on how to manage a nonprofit’s cash over the course of a fiscal year.