Finance Fundamentals for Nonprofits, with Website: Building Capacity and Sustainability
What is the nonprofit equivalent of profit? Should nonprofits try to maximize it, the way businesses strive to boost revenue? Rich with practicality, Finance Fundamentals for Nonprofits: Building Capacity and Sustainability clearly lays out the best practices and solid finance principles you need to understand the business of being nonprofit.Public finance expert Woods Bowman starts by looking at the two essential dimensions of financial health—capacity, an ability to do things and withstand unexpected shocks, and sustainability, the maintenance of financial capacity—explaining how to measure your nonprofit's financial capacity in different time frames and then measure its ability to sustain that capacity.Along with a companion website featuring a variety of online tools, this hands-on guide explores topics, including:Accrual accounting, highlighting treatment of non-commercial (alternative) incomeThe legal and management issues an endowment raisesHow to configure budgets to conform to nonprofit accounting rulesReconciling budgets with both financial statements and the IRS Form 990How federal tax law classifies tax-exempt institutionsOrdinary service providersMembership associationsEndowed service providersGrantmakersHow producers of goods and services can improve sustainability through revenue managementThe ethical duties of nonprofitsFilled with real-world case studies, this user-friendly, jargon-free guide uniquely blends business and public service perspectives on nonprofit financial management, providing you with the know-how and confidence you need to establish the financial capacity your nonprofit's mission requires—and sustaining it over time.