Organizations in the non-profit sector are not truly viable entities unless and until they have financial policies and procedures in place – this includes non profit accounting and fiscal management practices that will stand up to audits and comply with Generally Accepted Accounting Principles (GAAP).
One way to ensure that your organization is transparent and accountable financially is to make sure you have a team that you trust for guidance and who can answer questions as they arise, in a way that makes sense to your Leadership team (Senior staff and Board of Directors).
This team should include an Accountant (whether in house or a consultant), Auditor, and a Non Profit Consultant. Here’s what you’re hoping your team with help your leadership team with:
- Explain financial stewardship and its role in the organization
- Assist in defining the role of the Agency Executive and the Board of Directors in the Fiduciary activities of the organization
- Educate Board members to identify characteristics of financial health
- Define the role of Treasurer, Finance Committee and Audit Committee of the organization
- Provide sample fiscal management policies and procedures
- Identify the necessary IRS filing forms and assist with filing requirements
- Assist with development of Internal Fiscal Procedures (and ensure GAAP compliance)
- Assist with development of fiscal management checklists to ensure all accounting and financial management tasks are completed within time.
- Assist with the choice of financial management software to ensure the kind of reporting capacity your organization needs and compliance with GAAP.
- Develop a budgeting procedure based on stated mission as well as organizational goals and objectives (usually found in the organizational strategic plan), including forecasts, comparison and analysis, and periodic reviews.
- Perform cash flow and cash management analysis
- Develop a Risk Management Plan and provide advice on execution
- Develop a Crisis Management Plan – or at least the financial aspects.
Interested in more? See Non Profit Leadership Resources
Anna Blanch Rabe & Associates is a Communications Consulting serving community minded businesses, non-profits, and social impact businesses with high quality communications strategy, advice, and content. Click here to arrange for a free 30 minute consultation.
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Anna Blanch Rabe, founder of Anna Blanch Rabe & Associates, has been working with Social Enterprises, socially-responsible businesses, educational institutions, and non-profit organizations since 2006 to develop and effectively execute strategic, digital, and narrative initiatives to gain exposure, develop community- capacity, attract talent, and reach new customers. Anna is an Australian-born speaker, writer and advocate. Connect with Anna on Instagram, facebook page, & Twitter.
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