Financial Management for Nonprofit Organizations : Policies and Practices.
Zietlow, John.
Financial Management for Nonprofit Organizations : Policies and Practices. - 3rd ed. - 1 online resource (770 pages)
Cover -- Title Page -- Copyright -- Contents -- About the Authors -- Preface -- Acknowledgments -- Chapter 1: Understanding Nonprofit Organization Finances -- 1.1 The Impact of the Great Recession -- 1.2 Definition of Nonprofit Organizations -- (a) 501(c)(3) Corporations -- (b) Bylaws and Articles of Incorporation -- 1.3 Characteristics of Nonprofit Organizations -- (a) Organizational Mission -- (b) Organizational Structure -- 1.4 Understanding the Language of the Nonprofit Organization -- 1.5 Financial Policies -- 1.6 Financial Practices -- 1.7 Primary Financial Objective -- (a) Differences Between Businesses and Donative Nonprofits -- (b) Survey Evidence on the Primary Financial Objective -- (c) Financial Objective for Purely Financial Decisions -- (d) Recommended Primary Financial Objective: Appropriate Liquidity Target -- 1.8 Conclusion -- Notes -- Appendix 1A The Lilly Study Findings -- The Lilly Study -- Keep the Mission First! -- Management and Financial Objectives -- On-Site Interviews, Questionnaires, and Archival Studies -- The Appropriate Liquidity Target Model -- Note -- Chapter 2: Liquidity Management -- 2.1 Introduction -- (a) Importance of Liquidity -- (b) Are Nonprofits Overly Risk-Averse? -- 2.2 Noncommercial Nonprofit Organizations -- (a) Guidance from Finance Theory -- (b) Evaluation of Finance Theory -- (c) Complexity of Nonprofit Cash Flows -- 2.3 Evidence on Liquidity Management in the Nonprofit Sector -- (a) Liquidity Management in the Healthcare Sector -- (b) Liquidity Management in Colleges and Universities -- (c) Liquidity Management in Faith-Based Donative Organizations -- 2.4 Facets of Liquidity Management -- (a) Layers of Liquidity -- (b) Solvency -- (c) Liquidity -- (d) Financial Flexibility -- 2.5 Importance of Liquidity Management -- (a) Institutional Factors -- (b) Managerial Philosophy Factors. (c) Liquidity Implications of Institutional and Managerial Philosophy Factors -- (d) Watchdog Agency Standards on Solvency and Liquidity -- (e) Assessment of Watchdog Standards -- 2.6 What Is the Appropriate Level of Liquidity? -- (a) Establishing the Liquidity Position Based on Financial Vulnerability -- (b) Diagnostic Tools to Assist in Setting the Appropriate Liquidity Target -- 2.7 Conclusion -- Notes -- Chapter 3: Managing Mission, Strategy, and Financial Leadership -- 3.1 Value of Strategic Planning -- 3.2 What Is Strategic Planning? -- 3.3 What Are the Organization's Mission, Vision, and Goals/Objectives? -- (a) Strategy and the "Bottom Line -- (b) What Are Strategic Decisions? -- 3.4 Strategic Management Process -- (a) SWOT Analysis -- (b) What Are Internal Strengths and Weaknesses? -- (c) Using Environmental Scanning to Detect External Opportunities and Threats -- (d) Strategic Management Is an Ongoing Process -- (e) Financial Leadership, Sustainability, and the Business Model -- (f) Sustainability -- (g) Business Model -- 3.5 Implementing the Strategic Plan -- (a) Three Steps in Implementation -- (b) Cutback Strategies -- 3.6 Performance Management Systems -- (a) Balanced Scorecard and Dashboard -- (b) Portfolio Approaches -- 3.7 Strategic Planning Practices: What Does the Evidence Show? -- 3.8 Conclusion -- Notes -- Chapter 4: Managing Structure, Accountability, and Ethics -- 4.1 Financial Tools and Support Structure -- (a) Elements of the Financial Structure -- (b) Internal Controls -- (c) Financial Policy -- (d) Financial Procedures -- 4.2 Organizational Structure and Governance -- (a) Board of Trustees/Directors -- (b) Officers of the Nonprofit Organization -- (c) Board Committees -- (d) Executive Director/Chief Executive Officer -- (e) Staff -- (f) Volunteers -- (g) Independent Contractors -- (h) Constituents -- (i) Finance Function. (j) Interface of CFO with CEO -- (k) Interface of CFO with the Board -- 4.3 Accountability Structure -- (a) Accountability Structure -- (b) Establishing an Accountability Policy -- (c) Checklist for Assigning Responsibility -- (d) Designing an Accountability Structure -- (e) Monitoring an Accountability Structure -- 4.4 Ethics -- (a) Ethics Check -- (b) Making Ethical Decisions -- (c) Ethical Challenges Faced by Nonprofits -- (d) An Effective Ethics and Compliance Program Goes Beyond a Code of Ethics/Conduct -- 4.5 Structure, Accountability, and Ethics in Practice -- 4.6 New Forms -- 4.7 Conclusion -- Notes -- Appendix 4A By-Laws of the ABC Educational Foundation - A California Nonprofit Public Benefit Corporation -- Article I. Name -- Article II. Offices -- Section 1. Executive Office -- Section 2. Other Offices -- Article III. Purposes and Powers -- Section 1. Purposes -- Section 2. Powers -- Section 3. Dedication of Assets -- Article IV. Membership Corporation -- Section 1. Membership -- Section 2. Members Called Trustees -- Section 3. Persons Associated with the Foundation -- Section 4. Liability of Trustees -- Article v. Trustees -- Section 1. Powers -- Section 2. Number and Qualification of Trustees -- Section 3. Manner of Selection of Trustees -- Section 4. Term of Office -- Section 5. Honorary Trustees -- Section 6. Resignation and Removal of Trustees -- Section 7. Vacancies -- Section 8. Regular Meetings -- Section 9. Special Meetings -- Section 10. Notice and Place of Meetings -- Section 11. Action at a Meeting: Quorum and Required Vote -- Section 12. Action Without a Meeting: Mail-Written Ballots -- Section 13. Validation of Defectively Called or Noticed Meetings -- Section 14. Adjournment -- Section 15. Form of Proxy or Mail-Written Ballot -- Section 16. Fees and Compensation -- Section 17. Council of Presidents. Article VI. Standing Boards of the Foundation -- Section 1. Executive Committee -- Section 2. Board of Development -- Article VII. Officers -- Section 1. Chair of the Board -- Section 2. President -- Section 3. President-Elect -- Section 4. Vice President-Development -- Section 5. Vice President-Finance -- Section 6. General Counsel -- Section 7. Removal and Resignation -- Section 8. Vacancies -- Section 9. Compensation -- Article VIII. Procedures -- Section 4. Standing Orders -- Section 5. Indemnification of Agents of the Corporation: Liability Insurance -- Section 6. Support Group Policy -- Article IX: Miscellaneous -- Section 1. Inspection of Corporate Records -- Section 2. Representation of Shares of Other Corporations -- Section 3. Fiscal Year: Audit -- Article X. Amendments to By-Laws -- Notes -- Appendix 4B Summary of Trustee Responsibilities and Qualifications -- Board of Trustees -- Summary of Responsibilities -- Qualifications -- Board Chair -- Summary of Responsibilities -- Qualifications -- Executive Director/Chief Executive Officer -- Summary of Responsibilities -- Qualifications -- Treasurer/Chief Financial Officer -- Summary of Responsibilities -- Qualifications -- Secretary -- Summary of Responsibilities -- Qualifications -- Nominating Committee -- Summary of Responsibilities -- Qualifications -- Finance Committee -- Summary of Responsibilities -- Qualifications -- Volunteers -- Appendix 4C Recommended Governance and Ethics Resources -- Chapter 5: Developing Financial Policies -- 5.1 Introduction -- (a) What Is Policy? -- (b) Why Are Policies Required? -- (c) Complying with and Establishing Policy and Procedure -- (d) Who Sets Policy? -- (e) Where to Start? -- 5.2 Financial Policies -- (a) Roles of Board, Board Treasurer, and CEO/ED -- (b) Financial Policies: Prescriptive or Restrictive? -- (c) Categories of Financial Policies. (d) Accountability and Regulatory Compliance Policies -- (e) Financial and Financial Management Policies -- (f) Data Integrity Policies -- 5.3 Putting Policies into Place -- 5.4 Establishing Procedures -- 5.5 Financial Policies and Procedures in Practice -- 5.6 Additional Resources -- Notes -- Appendix 5A Nonprofit Financial Policy Examples on the Internet -- Appendix 5B Good, Better, and Best Measures of Target Liquidity -- Chapter 6: Understanding Financial Accounting Basics and Financial Statements -- 6.1 Introduction -- 6.2 Financial Statement Users and Uses -- (a) What Do Donors' Representatives Say? -- (b) External and Internal Financial Statements -- (c) Who Does the Accounting? -- (d) Roles of the Controller and Treasurer -- 6.3 Accounting Basics -- (a) Financial Standards and Standards Setters -- (b) Fund Accounting Versus Consolidation -- (c) Cash Basis Versus Accrual Basis Accounting -- (d) Audit, Review, or Compilation? -- 6.4 Three Financial Statements -- (a) Statement of Financial Position or Balance Sheet -- (b) Statement of Activities or Statement of Net Revenues -- (c) Statement of Cash Flows -- (d) Statement of Functional Expenses -- (e) Financial Accounting Standards 116 and 117 -- (f) What About the IRS Form 990 Tax Return? -- (g) Healthcare and Human Service Agency Financial Statements -- (h) Educational Institution Financial Statements -- (i) Cautions for Financial Statement Interpretation -- 6.5 The Audit and the Audit Committee -- 6.6 Financial Statement Users and Uses in Practice -- 6.7 Social Accounting -- 6.8 Additional Resources -- (a) Sources for Nonprofit Accounting and Accounting Standards -- (b) Sources for Nonprofit Accounting Software Reviews -- (c) Sources for Nonprofit Accounting Firm Contacts -- (d) Source for Nonprofit Audit Committee Toolkit -- (e) Sources for Social Accounting Information and Techniques. Notes.
9781119382614
Nonprofit organizations-Finance-Management.
Electronic books.
HG4027.65 .F563 2018
658.15
Financial Management for Nonprofit Organizations : Policies and Practices. - 3rd ed. - 1 online resource (770 pages)
Cover -- Title Page -- Copyright -- Contents -- About the Authors -- Preface -- Acknowledgments -- Chapter 1: Understanding Nonprofit Organization Finances -- 1.1 The Impact of the Great Recession -- 1.2 Definition of Nonprofit Organizations -- (a) 501(c)(3) Corporations -- (b) Bylaws and Articles of Incorporation -- 1.3 Characteristics of Nonprofit Organizations -- (a) Organizational Mission -- (b) Organizational Structure -- 1.4 Understanding the Language of the Nonprofit Organization -- 1.5 Financial Policies -- 1.6 Financial Practices -- 1.7 Primary Financial Objective -- (a) Differences Between Businesses and Donative Nonprofits -- (b) Survey Evidence on the Primary Financial Objective -- (c) Financial Objective for Purely Financial Decisions -- (d) Recommended Primary Financial Objective: Appropriate Liquidity Target -- 1.8 Conclusion -- Notes -- Appendix 1A The Lilly Study Findings -- The Lilly Study -- Keep the Mission First! -- Management and Financial Objectives -- On-Site Interviews, Questionnaires, and Archival Studies -- The Appropriate Liquidity Target Model -- Note -- Chapter 2: Liquidity Management -- 2.1 Introduction -- (a) Importance of Liquidity -- (b) Are Nonprofits Overly Risk-Averse? -- 2.2 Noncommercial Nonprofit Organizations -- (a) Guidance from Finance Theory -- (b) Evaluation of Finance Theory -- (c) Complexity of Nonprofit Cash Flows -- 2.3 Evidence on Liquidity Management in the Nonprofit Sector -- (a) Liquidity Management in the Healthcare Sector -- (b) Liquidity Management in Colleges and Universities -- (c) Liquidity Management in Faith-Based Donative Organizations -- 2.4 Facets of Liquidity Management -- (a) Layers of Liquidity -- (b) Solvency -- (c) Liquidity -- (d) Financial Flexibility -- 2.5 Importance of Liquidity Management -- (a) Institutional Factors -- (b) Managerial Philosophy Factors. (c) Liquidity Implications of Institutional and Managerial Philosophy Factors -- (d) Watchdog Agency Standards on Solvency and Liquidity -- (e) Assessment of Watchdog Standards -- 2.6 What Is the Appropriate Level of Liquidity? -- (a) Establishing the Liquidity Position Based on Financial Vulnerability -- (b) Diagnostic Tools to Assist in Setting the Appropriate Liquidity Target -- 2.7 Conclusion -- Notes -- Chapter 3: Managing Mission, Strategy, and Financial Leadership -- 3.1 Value of Strategic Planning -- 3.2 What Is Strategic Planning? -- 3.3 What Are the Organization's Mission, Vision, and Goals/Objectives? -- (a) Strategy and the "Bottom Line -- (b) What Are Strategic Decisions? -- 3.4 Strategic Management Process -- (a) SWOT Analysis -- (b) What Are Internal Strengths and Weaknesses? -- (c) Using Environmental Scanning to Detect External Opportunities and Threats -- (d) Strategic Management Is an Ongoing Process -- (e) Financial Leadership, Sustainability, and the Business Model -- (f) Sustainability -- (g) Business Model -- 3.5 Implementing the Strategic Plan -- (a) Three Steps in Implementation -- (b) Cutback Strategies -- 3.6 Performance Management Systems -- (a) Balanced Scorecard and Dashboard -- (b) Portfolio Approaches -- 3.7 Strategic Planning Practices: What Does the Evidence Show? -- 3.8 Conclusion -- Notes -- Chapter 4: Managing Structure, Accountability, and Ethics -- 4.1 Financial Tools and Support Structure -- (a) Elements of the Financial Structure -- (b) Internal Controls -- (c) Financial Policy -- (d) Financial Procedures -- 4.2 Organizational Structure and Governance -- (a) Board of Trustees/Directors -- (b) Officers of the Nonprofit Organization -- (c) Board Committees -- (d) Executive Director/Chief Executive Officer -- (e) Staff -- (f) Volunteers -- (g) Independent Contractors -- (h) Constituents -- (i) Finance Function. (j) Interface of CFO with CEO -- (k) Interface of CFO with the Board -- 4.3 Accountability Structure -- (a) Accountability Structure -- (b) Establishing an Accountability Policy -- (c) Checklist for Assigning Responsibility -- (d) Designing an Accountability Structure -- (e) Monitoring an Accountability Structure -- 4.4 Ethics -- (a) Ethics Check -- (b) Making Ethical Decisions -- (c) Ethical Challenges Faced by Nonprofits -- (d) An Effective Ethics and Compliance Program Goes Beyond a Code of Ethics/Conduct -- 4.5 Structure, Accountability, and Ethics in Practice -- 4.6 New Forms -- 4.7 Conclusion -- Notes -- Appendix 4A By-Laws of the ABC Educational Foundation - A California Nonprofit Public Benefit Corporation -- Article I. Name -- Article II. Offices -- Section 1. Executive Office -- Section 2. Other Offices -- Article III. Purposes and Powers -- Section 1. Purposes -- Section 2. Powers -- Section 3. Dedication of Assets -- Article IV. Membership Corporation -- Section 1. Membership -- Section 2. Members Called Trustees -- Section 3. Persons Associated with the Foundation -- Section 4. Liability of Trustees -- Article v. Trustees -- Section 1. Powers -- Section 2. Number and Qualification of Trustees -- Section 3. Manner of Selection of Trustees -- Section 4. Term of Office -- Section 5. Honorary Trustees -- Section 6. Resignation and Removal of Trustees -- Section 7. Vacancies -- Section 8. Regular Meetings -- Section 9. Special Meetings -- Section 10. Notice and Place of Meetings -- Section 11. Action at a Meeting: Quorum and Required Vote -- Section 12. Action Without a Meeting: Mail-Written Ballots -- Section 13. Validation of Defectively Called or Noticed Meetings -- Section 14. Adjournment -- Section 15. Form of Proxy or Mail-Written Ballot -- Section 16. Fees and Compensation -- Section 17. Council of Presidents. Article VI. Standing Boards of the Foundation -- Section 1. Executive Committee -- Section 2. Board of Development -- Article VII. Officers -- Section 1. Chair of the Board -- Section 2. President -- Section 3. President-Elect -- Section 4. Vice President-Development -- Section 5. Vice President-Finance -- Section 6. General Counsel -- Section 7. Removal and Resignation -- Section 8. Vacancies -- Section 9. Compensation -- Article VIII. Procedures -- Section 4. Standing Orders -- Section 5. Indemnification of Agents of the Corporation: Liability Insurance -- Section 6. Support Group Policy -- Article IX: Miscellaneous -- Section 1. Inspection of Corporate Records -- Section 2. Representation of Shares of Other Corporations -- Section 3. Fiscal Year: Audit -- Article X. Amendments to By-Laws -- Notes -- Appendix 4B Summary of Trustee Responsibilities and Qualifications -- Board of Trustees -- Summary of Responsibilities -- Qualifications -- Board Chair -- Summary of Responsibilities -- Qualifications -- Executive Director/Chief Executive Officer -- Summary of Responsibilities -- Qualifications -- Treasurer/Chief Financial Officer -- Summary of Responsibilities -- Qualifications -- Secretary -- Summary of Responsibilities -- Qualifications -- Nominating Committee -- Summary of Responsibilities -- Qualifications -- Finance Committee -- Summary of Responsibilities -- Qualifications -- Volunteers -- Appendix 4C Recommended Governance and Ethics Resources -- Chapter 5: Developing Financial Policies -- 5.1 Introduction -- (a) What Is Policy? -- (b) Why Are Policies Required? -- (c) Complying with and Establishing Policy and Procedure -- (d) Who Sets Policy? -- (e) Where to Start? -- 5.2 Financial Policies -- (a) Roles of Board, Board Treasurer, and CEO/ED -- (b) Financial Policies: Prescriptive or Restrictive? -- (c) Categories of Financial Policies. (d) Accountability and Regulatory Compliance Policies -- (e) Financial and Financial Management Policies -- (f) Data Integrity Policies -- 5.3 Putting Policies into Place -- 5.4 Establishing Procedures -- 5.5 Financial Policies and Procedures in Practice -- 5.6 Additional Resources -- Notes -- Appendix 5A Nonprofit Financial Policy Examples on the Internet -- Appendix 5B Good, Better, and Best Measures of Target Liquidity -- Chapter 6: Understanding Financial Accounting Basics and Financial Statements -- 6.1 Introduction -- 6.2 Financial Statement Users and Uses -- (a) What Do Donors' Representatives Say? -- (b) External and Internal Financial Statements -- (c) Who Does the Accounting? -- (d) Roles of the Controller and Treasurer -- 6.3 Accounting Basics -- (a) Financial Standards and Standards Setters -- (b) Fund Accounting Versus Consolidation -- (c) Cash Basis Versus Accrual Basis Accounting -- (d) Audit, Review, or Compilation? -- 6.4 Three Financial Statements -- (a) Statement of Financial Position or Balance Sheet -- (b) Statement of Activities or Statement of Net Revenues -- (c) Statement of Cash Flows -- (d) Statement of Functional Expenses -- (e) Financial Accounting Standards 116 and 117 -- (f) What About the IRS Form 990 Tax Return? -- (g) Healthcare and Human Service Agency Financial Statements -- (h) Educational Institution Financial Statements -- (i) Cautions for Financial Statement Interpretation -- 6.5 The Audit and the Audit Committee -- 6.6 Financial Statement Users and Uses in Practice -- 6.7 Social Accounting -- 6.8 Additional Resources -- (a) Sources for Nonprofit Accounting and Accounting Standards -- (b) Sources for Nonprofit Accounting Software Reviews -- (c) Sources for Nonprofit Accounting Firm Contacts -- (d) Source for Nonprofit Audit Committee Toolkit -- (e) Sources for Social Accounting Information and Techniques. Notes.
9781119382614
Nonprofit organizations-Finance-Management.
Electronic books.
HG4027.65 .F563 2018
658.15