Financial Reporting for non-profit organizations can be complex. Navigating what you should include in the presentation, how to prepare it for the board members, and how to hold your non-profit accountable for where the funds are coming from can be complicated. Here are a few pointers on the best things to include, and how to differentiate between different types of funds:
The non-profit statement of activities reads much like an Income Statement in for-profit organizations.
Instead of breaking down the activities into Revenue, Cost of Sales, General and Administrative Expenses, and Other Income and Expenses, the non-profit statement breaks down income and expenses into three major buckets:
Program revenue and expenses
Fundraising revenue and expenses
General & Administrative expenses
Nonprofit executives must wear many hats. Not only are they responsible for fundraising to advance their organizational mission, but they may also be responsible for strategic planning, board communications, human resources, and recruiting, among other things.
More so than ever before, nonprofit leaders are under pressure to fundraise, manage operations, comply with state and federal regulatory requirements, and leverage resources cost-effectively.
The challenge of hiring and retaining talent is intensifying as the US workforce shrinks and wages increase. Most nonprofits do not have the resources to achieve all of this this in-house.
TGG recently hosted a roundtable on nonprofit fundraising. We invited our clients and other nonprofits in the community to discuss strategies for increasing donations, expanding their donor base, and appealing to millennial donors.
The forum was moderated by Steve Goldstein, a Consulting CFO with TGG. Steve not only serves some of our not-for-profit clientele, but also founded and runs his own non-profit, Starfish Asset Fund, which provides low interest loans and financial education for transitioning foster youth.
We’ve compiled some of the takeaways from the roundtable because we believe these insights apply to a broad range of not-for-profit organizations.
The agenda covered many aspects of marketing, with an emphasis on using technology and data to improve results.
There were many great discussions and actionable items that can be applied by any nonprofit organization intent on realizing their mission. We have summarized a number of the top takeaways: