Organizing

Financial Management—Key to Nonprofit Management

� Vital Services Being Provided
� Expectations of Donors
� Clients unable to pay for services� Cash binds are likely and recurring

Definitions

� Nonprofit Organization

Financial Management

� Process of planning, budgeting, organizing, controlling and evaluating

� System of collecting and analyzing an organizations financial data to determine its financial position and operating results

� Bookkeeping

� Monthly reporting
� Annual reporting
� Fiscal Year-end

Similarities to Commercial Entities

Starting a Nonprofit

� Is there a real need to be addressed?

Application for Tax-Exemption

� IRS Form 1023 – asks what is/are
� Funding sources
� Plan for fund raising
� Planned activities next 3-5 years
� Board members
� Affiliation of board members
� Financial affiliation with other organizations

Articles of Incorporation

� Name
� Mission/Purpose
� A nonprofit organization
� Benefit Members or Clients, not
lobbying
� Dissolution – Assets to other nonprofit� Initial Registered Office