Not-for-Profit Budgeting and Financial Management

Take control of your organization's short- and long-term financial plan Now fully revised, Not-for-Profit Budgeting and Financial Management, Second Edition, offers a financial planning system that is not only easy to use and monitor, but also ensures true fiscal accountability in the complex not-for-profit arena. Adds three entirely new chapters on Footnoting the Statement of Activity, Presenting Cash Prepared and Accrual Statements on the same page, and The Importance of the Executive Summary Fully updated with the latest financial advice to benefit your nonprofit Explains how to separate controllable, semi-controllable, and fixed expenses Reveals how you can prepare and present such top-notch budget documents that budgets will be approved the first time Written in a nontechnical, understandable format, incorporating dozens of relevant forms and documents, this completely revised and expanded edition will enable your nonprofit organization to create and manage reasonable financial plans that fit their organization's needs.

Preface xiii Disclaimer xv Chapter 1 Budgeting and Financial Operation 1 Chapter 2 Cash vs. Accrual Accounting 13 Chapter 3 Basic Accounting and Financial Operations 45 Chapter 4 Effective Use of Footnotes and Financial Ratio Calculations for the Statement of Financial Position 51 Chapter 5 Controllable and Uncontrollable Expenses 57 Chapter 6 Controllable, Semi-Controllable, and Fixed Expenses 61 Chapter 7 Noncash Expenses 65 Chapter 8 Effective Footnotes for the Statement of Activity 69 Chapter 9 Natural and Functional Statements of Activity 77 Chapter 10 Internal Financial Statements 81 Chapter 11 Converting Accrual-Method Financial Statements to Cash-Method Financial Statements 89 Chapter 12 Budgeting Philosophy 99 Chapter 13 Continuous Budgeting System Overview 101 Chapter 14 The Executive and the Budget Process 105 Chapter 15 Executive Summary 109 Chapter 16 Comparative Financial Statements 113 Chapter 17 Expense Reduction Plans 117 Chapter 18 The Monthly Budgeting Process 121 Chapter 19 The Cash Flow Budget 135 Chapter 20 Getting the Budget Approved 139 Chapter 21 Suggested Format of Budget Documents for an Approving Body 141 Chapter 22 The Role of the Budget Coordinator 157 Chapter 23 Accounting and Budgeting for Fringe Benefits 161 Chapter 24 The Capital Budget and Depreciation 163 Chapter 25 Inventory Purchases and Calculation of Cost of Goods Sold 167 Chapter 26 Accounting and Budgeting for Dues 169 Chapter 27 Capital Assets: Lease-or-Buy Decisions 175 Chapter 28 The Long-Range Plan 177 Chapter 29 Financial Ratios 179 Chapter 30 Zero-Based Budgeting 183 Chapter 31 Putting it All Together 185 Glossary 203 Index 207