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Balance Sheet Cheat Sheet
The balance sheet reports an organization’s assets (what is owned) and liabilities (what is owed). The net assets (also called equity, capital, retained earnings, or fund balance) represent the sum of all the annual surpluses or deficits that an organization has accumulated over its entire history. If it happened in your financial past, the balance sheet reflects it.
Cash Flow Primer Video
Money doesn’t always come in and go out smoothly day to day or month to month. In order to weather the ups and downs properly, it’s important to project and plan your cash flow.
Analyzing Financial Information Using Ratios
Financial ratios are an established tool for businesses and nonprofits. This tool provides calculation of 14 ratios, including a mix of balance sheet and income statement ratios.
Transforming Business Models Primer Video
Learn the four core components of a nonprofit business model: revenue mix, understanding the cost of effective programs, infrastructure, and capital structure and how all of these components connect to mission and your organization’s financial health.
Financial Policy Guidelines and Example
Developing and adopting a written financial policy is a valuable practice for any nonprofit organization, no matter how small or large. Financial policies clarify the roles, authority, and responsibilities for essential financial management activities and decisions.
Operating Reserves with Nonprofit Policy Examples
Operating reserves should not be used to cover a long-term or permanent income shortfall. Reserves can allow an organization to weather serious bumps in the road by buying time to implement new strategies. To be prudent, reserves should be used to solve temporary problems, not structural financial problems.
True Program Costs: Program Budget and Allocation Template and Resource
While the long-term goal for nonprofits is not to return profits to shareholders, we all know that nonprofits are business entities that need to maintain financial health and stability in order to achieve their mission. Understanding the true, full cost of delivering various programs and services in the community is a critical piece of the management puzzle.
Cost Allocation Primer Video
Your nonprofit work has certain knowable costs, such as costs for staff, costs for property and equipment, and costs for programs. Sound nonprofit finance means…
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