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Oct 26, 2022 | Insights

What You Need to Know About Nonprofit Financial Management

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What should I be keeping an eye on when it comes to financial management for nonprofits?

The answer is two-fold.

1) It depends on your funding streams

Some questions to ask include, but are not limited to:

  • Is the funding from a donor, a grant, or something else?
  • What has the funding source stated are the grant requirements?
  • How has the funder stated to allocate the funds?
  • What are the reporting requirements, etc.?

It is critical to keep an eye on the funder agreement/contract and set up systems once the fund is awarded so you are tracking necessary components from the beginning of the award.

2) Areas that all nonprofits should consider include, but are not limited to:

  • Providing regular reports for various stakeholders, including the main 3 monthly financial reports: Statement of Activity, Statement of Financial Position, and Cash Flow Statement.
  • Providing leadership and Program Managers with monthly budget to actual to assess if the budgets are on track or if there are significant variances that should be addressed.
  • Whether or not the organization has an operating reserve.
  • Having a budget process and timeline.
  • Setting up organized, efficient electronic filing systems.

 

Learn more

To explore these questions in more depth, register for the Introduction to Financial Management virtual workshop on November 8, 2022 from 10 a.m. – 12 p.m.

 

Maureen Miller is an expert at developing efficient and impactful financial systems that support organizations in achieving their strategic fiscal goals. She is an expert at translating complicated financial information to people with varied levels of financial knowledge. Maureen has decades of experience in financial management, including 12 years as a finance & administrative director at a New Hampshire state-wide nonprofit, 16 years working with three different organizations within the University of New Hampshire system (Sustainability Institute, Carsey School of Public Policy, and the Institute on Disability), and eight years as a financial management consultant for nonprofits and small businesses.