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Streetsmart Financial Basics for Nonprofit Managers

Book 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

  1. Title Page
  2. Copyright
  3. Dedication
  4. Preface
  5. Acknowledgments
  6. Note to Reader
  7. Part One: Analysis
    1. Chapter 1: Structure of Nonprofit Organizations
      1. Corporations
      2. Programs
      3. Hybrid Corporations
      4. Loss of Tax-Exempt Status: The Monster Within
    2. Chapter 2: Mission: Managing Your Two Bottom Lines
      1. The Role of a Value System
      2. The Nonprofit's Dilemma and How to Solve It
    3. Chapter 3: Accounting as a Second Language: A Nine-Point Program
      1. The Entity Principle
      2. Money Measurement
      3. Conservatism Principle
      4. The Cost Concept
      5. The Materiality Principle
      6. Going Concern
      7. Dual Aspect
      8. Realization Principle
      9. Matching Principle
    4. Chapter 4: Assets Are for Boards, Activities Are for Managers
      1. Concepts Versus Details
      2. Boards Invest, Managers Spend
      3. If It Has to Be Decided Today, It's Probably the Wrong Question
      4. Boards Own the Controls, Managers Implement Them
    5. Chapter 5: Balance Sheets: How They Get That Way
      1. Current Assets (from IRS Form 990, page 11)
      2. Noncurrent Assets
      3. Current Liabilities
      4. Noncurrent Liabilities
      5. Making the Balance Sheet Dance
      6. Transparency, Thy Name Is IRS Form 990
      7. What to Do
    6. Chapter 6: Financial Analysis: A Few Analytical Tools
      1. Financial Statement Analysis for Math Phobics
      2. Current Ratio
      3. Days' Cash
      4. Days' Receivables
      5. Cash Flow to Total Debt
      6. Debt to Net Assets
      7. Operating Margin
      8. Accounting Age of Plant/Equipment (or Land, Buildings, and Equipment)
      9. A Footnote
    7. Chapter 7: Beyond the C3: Alternate Corporate Structures
      1. Commonly Available Structures
  8. Part Two: Accounting
    1. Chapter 8: Nonprofit Accounting: Acknowledging the Strings Attached
      1. Net Asset Categories
      2. Other Provisions
      3. What It All Means
    2. Chapter 9: Cost Accounting: How Much Does It Cost?
      1. A Form of Management Accounting
      2. Indirect Costs
      3. Certain Support Costs Get Assigned to Other Support Costs
      4. Breakeven Analysis—Another Use for Cost Data
      5. Cost Accounting versus Cost Reporting
    3. Chapter 10: Auditing: Choosing and Using an Auditor
      1. Audit, Review, and Compilation
      2. The Auditor Market
      3. Getting Value from the Audit
      4. Conclusion
  9. Part Three: Operations
    1. Chapter 11: Cash Is King
      1. Up the Balance Sheet
      2. How Much Cash Is Enough?
      3. Conclusion
    2. Chapter 12: Capital: Not a Four-Letter Word
      1. Sources of Capital
      2. The Mechanics of Capital Financing
      3. The Present Value of Money
      4. The Great Divide among Nonprofits
      5. Future Access to Capital Markets
      6. The Role of Net Assets
      7. Strategic Capital Management
    3. Chapter 13: Budgeting: Taming the Budget Beast
      1. Playing Revenues Like a Symphony
      2. Expenses
      3. Conclusion
    4. Chapter 14: Indirect Costs and Other Despised Items
      1. Rules Govern Audits, Economics Rules Budgets
      2. Still, It's Low That Counts
      3. Secrets of the Indirect Cost Game
    5. Chapter 15: Managing Money-Losing Programs
      1. The Origin of the Problem
      2. Solutions
      3. Other Sources of Value
      4. Ding Ding Ding Ding Ding!
    6. Chapter 16: The Milestones of Spending on Overhead Costs
    7. Chapter 17: Pricing: How Much Should It Cost?
      1. Pricing Methodologies
      2. Going the Other Way—Contractual Adjustments and Subsidies
      3. Pricing Strategies
      4. How to Price
    8. Chapter 18: Profit: Why and How Much?
      1. Profit Defined
      2. Uses of Profit
      3. Profit—How to Get It
      4. What Can Be Done
    9. Chapter 19: To Raise More Money, Think Cows
      1. Donations
      2. Bequests—Cow to Charity
      3. Charitable Remainder Trusts—Milk to Beneficiaries, Cow to Charity
      4. Pooled Income Funds—Donors Put Their Cows in a Herd, Keep Rights to Milk
    10. Chapter 20: Owning a Building: What's in It for You?
      1. A Three-Part Calculation
    11. Chapter 21: Insurance: The Maddeningly Complicated Art of Covering Your Assets
      1. To Insure or Self-Insure?
      2. Risk Management
      3. Captive Insurance Companies
      4. Quality Assurance in Disguise
    12. Chapter 22: Internal Controls for External Goals
      1. The Elements of Internal Control
      2. How to Monitor the System
      3. Maintaining the System
      4. Conclusion
    13. Chapter 23: Scrutiny Intensifies
      1. Some Predictions
      2. The Growing Industry of Charity Watching
    14. Chapter 24: Management Controls: Toward Accountability for Performance
      1. Management Controls circa 1980
      2. Beyond Management Controls in the Twenty-First Century: How to Do It
      3. Messages
      4. How to Prepare—Changes in the CFO Role
      5. It's Called <i xmlns="" xmlns:epub="" xmlns:m="" xmlns:svg="" xmlns:ibooks="">ACCOUNTING</i> for a Reason for a Reason
      6. Appreciate the Abrupt Change
      7. Frame the New Role
      8. Meet Your New CFO
  10. Part Four: Planning, Control, and Miscellaneous
    1. Chapter 25: Finance Is Oil, Development Is Water
      1. It's All about Time
      2. The Fix
    2. Chapter 26: When Do You CFO?
      1. DIY
      2. The Financial Tasks Multiply
    3. Chapter 27: Business Models and Business Plans
      1. First the Model, Then the Plan
      2. How to Build Your Business Model
      3. What, Exactly, Is a Business Plan?
      4. What Is in a Business Plan (Usually…)?
      5. Start-Up Nonprofits
      6. The Restructuring Nonprofit
      7. New Program or Division
      8. Goals Drive the Plan
    4. Chapter 28: How to Beat the Next Recession
      1. Understand the Demand Pattern for Your Services
      2. Prepare for Reductions—in New Services
      3. Anticipate Foundation Behavior
      4. Proactively Communicate with Your Staff
      5. Consider Repurposing Your Reserves
      6. Stay Calm
  11. Appendix A: A Financial Management Cultural Primer
  12. Appendix B: Budget Bloopers
  13. Appendix C: Using the Website: Table of Contents with Commentary
    1. Part One: Analysis
    2. Part Two: Accounting
    3. Part Three: Operations
    4. Part Four: Planning, Control, and Miscellaneous
    5. Introduction
    6. System Requirements
    7. Using the Files
    8. User Assistance
      1. Index
  14. End User License Agreement