Streetsmart financial basics for nonprofit managers

Author(s)

    • McLaughlin, Thomas A.

Bibliographic Information

Streetsmart financial basics for nonprofit managers

Thomas A. McLaughlin

Wiley, c2016

4th ed

  • : pbk

Available at  / 1 libraries

Search this Book/Journal

Note

Includes index

Description and Table of Contents

Description

The complete guide to the basics of nonprofit financial management Let's be honest. Most books about financial management are densely written, heavy on jargon, and light on practicality. Expert financial consultant and author Tom McLaughlin takes a different approach with his fourth edition of Streetsmart Financial Basics for Nonprofit Managers. This comprehensive guide provides effective, easy-to-use tips, tools, resources, and analyses. The light, humorous tone in Streetsmart Financial Basics for Nonprofit Managers makes it an accessible resource for nonprofit executives, board members, students, and those new to the field. This book forgoes useless, pretentious verbiage in order to outline real-world strategies that work. This edition includes: New insights, updates, vignettes, case studies, and examples to deal with the implications of nonprofit financial management An examination of nonprofit business models in relation to growing demands from the government and other funders How to construct business plans for virtually any nonprofit entity Customizable resources-including financial worksheets, forms, and Excel templates to help nonprofit managers complete their day to day assignments A guided tour through common aspects of nonprofit management, such as financial analysis, accounting, and operations Practical and informative, Streetsmart Financial Basics for Nonprofit Managers is the go-to financial management reference for nonprofit managers, boards of directors, and funders.

Table of Contents

Preface xiii Acknowledgments xvii Note to Reader xix PART ONE Analysis 1 CHAPTER 1 Structure of Nonprofit Organizations 3 Corporations 3 Programs 6 Hybrid Corporations 8 Loss of Tax-Exempt Status: The Monster Within 14 CHAPTER 2 Mission: Managing Your Two Bottom Lines 17 The Role of a Value System 18 The Nonprofit's Dilemma and How to Solve It 20 CHAPTER 3 Accounting as a Second Language: A Nine-Point Program 23 The Entity Principle 23 Money Measurement 24 Conservatism Principle 24 The Cost Concept 26 The Materiality Principle 27 Going Concern 29 Dual Aspect 30 Realization Principle 32 Matching Principle 33 CHAPTER 4 Assets Are for Boards, Activities Are for Managers 35 Concepts Versus Details 36 Boards Invest, Managers Spend 37 If It Has to Be Decided Today, It's Probably the Wrong Question 38 Boards Own the Controls, Managers Implement Them 38 CHAPTER 5 Balance Sheets: How They Get That Way 39 Current Assets (from IRS Form 990, page 11) 40 Noncurrent Assets 43 Current Liabilities 45 Noncurrent Liabilities 45 Making the Balance Sheet Dance 49 Transparency, Thy Name Is IRS Form 990 52 What to Do 53 CHAPTER 6 Financial Analysis: A Few Analytical Tools 67 Financial Statement Analysis for Math Phobics 68 Current Ratio 75 Days' Cash 77 Days' Receivables 79 Cash Flow to Total Debt 81 Debt to Net Assets 82 Operating Margin 85 Accounting Age of Plant/Equipment (or Land, Buildings, and Equipment) 86 A Footnote 87 CHAPTER 7 Beyond the C3: Alternate Corporate Structures 89 Commonly Available Structures 92 PART TWO Accounting 95 CHAPTER 8 Nonprofit Accounting: Acknowledging the Strings Attached 97 Net Asset Categories 98 Other Provisions 99 What It All Means 99 CHAPTER 9 Cost Accounting: How Much Does It Cost? 103 A Form of Management Accounting 104 Indirect Costs 106 Certain Support Costs Get Assigned to Other Support Costs 106 Breakeven Analysis-Another Use for Cost Data 110 Cost Accounting versus Cost Reporting 113 CHAPTER 10 Auditing: Choosing and Using an Auditor 115 Audit, Review, and Compilation 117 The Auditor Market 119 Getting Value from the Audit 122 Conclusion 124 PART THREE Operations 125 CHAPTER 11 Cash Is King 127 Up the Balance Sheet 128 How Much Cash Is Enough? 141 Conclusion 145 CHAPTER 12 Capital: Not a Four-Letter Word 147 Sources of Capital 148 The Mechanics of Capital Financing 150 The Present Value of Money 156 The Great Divide among Nonprofits 157 Future Access to Capital Markets 159 The Role of Net Assets 161 Strategic Capital Management 161 CHAPTER 13 Budgeting: Taming the Budget Beast 163 Playing Revenues Like a Symphony 165 Expenses 166 Conclusion 176 CHAPTER 14 Indirect Costs and Other Despised Items 177 Rules Govern Audits, Economics Rules Budgets 179 Still, It's Low That Counts 182 Secrets of the Indirect Cost Game 185 CHAPTER 15 Managing Money-Losing Programs 191 The Origin of the Problem 192 Solutions 192 Other Sources of Value 192 Ding Ding Ding Ding Ding! 194 CHAPTER 16 The Milestones of Spending on Overhead Costs 199 CHAPTER 17 Pricing: How Much Should It Cost? 205 Pricing Methodologies 208 Going the Other Way-Contractual Adjustments and Subsidies 212 Pricing Strategies 213 How to Price 214 CHAPTER 18 Profit: Why and How Much? 217 Profit Defined 217 Uses of Profit 218 Profit-How to Get It 226 What Can Be Done 228 CHAPTER 19 To Raise More Money, Think Cows 229 Donations 230 Bequests-Cow to Charity 230 Charitable Remainder Trusts-Milk to Beneficiaries, Cow to Charity 230 Pooled Income Funds-Donors Put Their Cows in a Herd, Keep Rights to Milk 233 CHAPTER 20 Owning a Building: What's in It for You? 235 A Three-Part Calculation 236 CHAPTER 21 Insurance: The Maddeningly Complicated Art of Covering Your Assets 239 To Insure or Self-Insure? 241 Risk Management 242 Captive Insurance Companies 245 Quality Assurance in Disguise 246 CHAPTER 22 Internal Controls for External Goals 249 The Elements of Internal Control 251 How to Monitor the System 264 Maintaining the System 266 Conclusion 268 CHAPTER 23 Scrutiny Intensifies 269 Some Predictions 272 The Growing Industry of Charity Watching 274 CHAPTER 24 Management Controls: Toward Accountability for Performance 279 Management Controls circa 1980 280 Beyond Management Controls in the Twenty-First Century: How to Do It 281 Messages 281 How to Prepare-Changes in the CFO Role 283 It's Called Accounting for a Reason 286 Appreciate the Abrupt Change 287 Frame the New Role 288 Meet Your New CFO 288 PART FOUR Planning, Control, and Miscellaneous 289 CHAPTER 25 Finance Is Oil, Development Is Water 291 It's All about Time 291 The Fix 293 CHAPTER 26 When Do You CFO? 295 DIY 296 The Financial Tasks Multiply 296 CHAPTER 27 Business Models and Business Plans 301 First the Model, Then the Plan 302 How to Build Your Business Model 304 What, Exactly, Is a Business Plan? 305 What Is in a Business Plan (Usually...)? 306 Start-Up Nonprofits 306 The Restructuring Nonprofit 307 New Program or Division 308 Goals Drive the Plan 309 CHAPTER 28 How to Beat the Next Recession 311 Understand the Demand Pattern for Your Services 312 Prepare for Reductions-in New Services 312 Anticipate Foundation Behavior 313 Proactively Communicate with Your Staff 314 Consider Repurposing Your Reserves 315 Stay Calm 315 Appendix A A Financial Management Cultural Primer 317 Appendix B Budget Bloopers 323 Appendix C Using the Website: Table of Contents with Commentary 327 Index 333

by "Nielsen BookData"

Details

Page Top