By John Zietlow, Visit Amazon's Jo Ann Hankin Page, search results, Learn about Author Central, Jo Ann Hankin, , Alan G. Seidner
Critical for every type and sizes of nonprofit agencies, this crucial e-book imparts a transparent experience of the technical services and skillability wanted as a nonprofit monetary officer and comprises real-world case experiences, checklists, tables, and pattern rules to elucidate and clarify monetary suggestions.
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Extra resources for Financial Management for Nonprofit Organizations: Policies and Practices
Sample text
While this is true up to a point, we believe that the program and financial objectives are more closely linked in most organizations and in most major spending and service-level decisions. (c) FINANCIAL OBJECTIVE FOR PURELY FINANCIAL DECISIONS. (d) RECOMMENDED PRIMARY FINANCIAL OBJECTIVE: APPROXIMATE LIQUIDITY TARGET. Our view, based on field evidence we have gathered and on the environmen- tal and management constraints nonprofits face, is that the primary financial objective of organizations is to strive to meet an “approximate liquidity target” over time.
One-half of the nonprofit sector’s revenue goes to the largest 15 percent of these organizations, some of which are large hospitals and universities. Faced with growing missions and shrinking resources, many organizations have turned to for-profit activities, such as issuing credit cards with their logos and selling their mailing lists to advertising firms, in order to augment their revenues. Most of these same organizations have overlooked the potential of better financial management to enhance revenues (from better investment management and faster cash collections) or reduce costs (from better negotiations with banks and process reengineering).
The number of registered charitable organizations has exploded from roughly 300,000 in 1970 to 1,680,000 today. One-half of the nonprofit sector’s revenue goes to the largest 15 percent of these organizations, some of which are large hospitals and universities. Faced with growing missions and shrinking resources, many organizations have turned to for-profit activities, such as issuing credit cards with their logos and selling their mailing lists to advertising firms, in order to augment their revenues.