Policies and Procedures

BASIC GUIDE TO NON-PROFIT FINANCIAL MANAGEMENT
Keywords: Bookkeeping, Accounting, Financial Controls, Operating Budgets, Cash Flow, Credit and Collections, Budget Deviation Analysis, Financial Statements, Financial Analysis, Financial Reporting
A list of hyperlinked resources covering a broad range of topics related to financial management in nonprofit organizations. The main orientation of this list is activities related to accounting, budgeting and financial reporting. More generalized sources and special topics such as dealing with cutbacks in funding are also addressed.
1999
Free Management Library by Carter McNamara MBA, PhD
http://www.mapnp.org/library/finance/np_fnce/np_fnce.htm

BASIC OVERVIEW OF U.S. NONPROFIT FINANCIAL MANAGEMENT
Keywords: Bookkeeping, Account, Financial Transaction, Budget, Financial Statement, Cash Flow Statement, Internal Control, Financial Analysis, Financial Report
Detailed descriptions of the main aspects involved with managing finances in a nonprofit organization. In order of appearance the topics covered are Basic Bookkeeping, Financial Statements, Financial Analysis and Financial Reporting. Within the text of each topic key terms and concepts are in bold type.
1999
Free Management Library by Carter McNamara MBA, PhD
http://www.mapnp.org/library/finance/np_fnce/basics.htm

CHECKLIST TO ASSESS FINANCIAL ACTIVITIES IN NONPROFIT ORGANIZATIONS
Keywords: Checklist, Tool, Indicator
This is an interactive checklist of 33 indicators to use for assessment of financial activities in your non-profit organization. The items on the list are categorized by whether their functions are considered Essential, Recommended or Additional. By using this checklist you can then determine if your nonprofit has met the functions described, needs more work of if the function described is even applicable at all.
United Way of Minneapolis, edited by Carter McNamara MBA, PhD
http://www.mapnp.org/library/org_eval/uw_fnce.htm

DIFFERENCES BETWEEN NONPROFIT AND FOR-PROFIT ACCOUNTING?
Keywords: Contributions, Pledges, Donated Materials and Services, Special Events and Membership Dues, Capitalizing and Depreciating Assets, Cash and Modified Cash-Basis Accounting, Functional Expense Allocation
This FAQ compares and contrasts how profits and nonprofits approach accounting. Tax-exempt status as determined by the IRS code 501(c) has a big impact on the differences between for-profit and nonprofit organizations. Topics covered in order of appearance are: Accounting for Contributions, Capitalizing and Depreciating Assets, Use of Cash-Basis Accounting, Functional Expense Allocation and Differences Between Non-Profit and For-Profit Accounting.
Alliance of Nonprofit Management
http://www.allianceonline.org/faqs/fmfaq2.html

FINANCIAL AND ACCOUNTING GUIDE FOR NOT-FOR-PROFIT ORGANIZATIONS
Keywords: Financial, Accounting, Not-For-Profit
This title in the monographic series Nonprofit Law, Finance and Management by Wiley is and extremely detailed and comprehensive work. This book is broken up into 6 main sections that are as follows: Key financial concepts, Financial statement presentation, Accounting and reporting, Controlling the not-for-profit organization, Tax and compliance reporting requirements and Setting up and keeping the books. Appendixes, Bibliography and Index are included. This book is 655+ pages long. In 1997 an update to this title was published. It covers in detail changes to tax law including SOP 78-10 and OMB Circular A-133.
1995
Gross, Malvern J, Larkin, Richard F (1995) Financial and accounting guide for not-for-profit organizations (5th ed.) New York, NY: John Wiley & Sons

SEVEN CHARACTERISTICS OF FINANCIALLY HEALTHY NONPROFITS
Keywords: Financially Healthy Organization
Just like the title says this is a brief list of "Characteristics of Financially Healthy Nonprofits". Short and to the point.
National Endowment for the Arts and the Stephens Group
http://arts.endow.gov/pub/Lessons/Lessons/STEVENS.HTML

Volunteer Financial Training

INFORMATION ABOUT NONPROFIT ACCOUNTING
Keywords: Basic bookkeeping, Fund accounting, FASB accounting standards
There are four articles that are very helpful in understanding nonprofit accounting. The first one is a tutorial on basic bookkeeping. It is not especially targeted to nonprofit but all the basic knowledge is explained step-by-step and it is worth reading. The second article is particularly for nonprofit accounting-" what is fund accounting". It explains the distinct difference in accounting procedures, management objectives and reporting requirements of fund accounting for nonprofit organizations. The third article-" FASB makes nonprofit accounting more accountable" is a good explanation of FASB accounting standards. As supplement reading for this article, the fourth one-" accounting standards" is also worth reading.
(FASB: Federal Accounting Standards Board)
http://nonprofit.about.com/careers/nonprofit/cs/accountinghelp/index.htm

A GUIDE TO BOOKKEEPING FOR NONPROFIT ORGANIZATIONS
Keywords: Bookkeepers, Journals, Control procedures, Financial statements, Audits, Budgeting
This is from a Canadian website for the Ministry of Agriculture, Food and Rural affairs, Ontario, Canada, but there is information on basic bookkeeping for nonprofit organizations. Some examples of tables are given to demonstrate control procedures and financial statements. It has an emphasis on agriculture and rural organizations but the essence of bookkeeping can be applied anywhere else. The characteristic is that it is written in very simple and understandable way. It may serve as a list of key terms for beginning nonprofit bookkeepers.
Laurinda Lang for the Ministry of Agriculture, Food and Rural Affairs, Ontario, Canada.
Feb. 1991
http://www.gov.on.ca/OMAFRA/english/rural/facts/88-010.htm#top

UNDERSTANDING YOUR ORGANIZATIONS' FINANCIAL STATEMENTS
Keywords: Fund management, Cash and accrual accounting, Budget, Income statement, Program or event report, Balance sheet, Financial health
This is a really basic introduction to managing fund for nonprofit organizations to reach their objectives. It specifies the difference between cash and accrual accounting. It explains four types of financial statements from budget, income statement, program or event report to balance sheet. Each is illustrated by using a simple example, either a figure or a table. It explains how to evaluate the financial stability of an organization. It is very concise and informational.
Katharine Schmidt for the Ministry of Agriculture, Food and Rural Affairs, Ontario, Canada.
Nov. 1997
http://www.gov.on.ca/OMAFRA/english/rural/facts/96-037.htm#top

MEETING THE CHALLENGES OF NONPROFIT BOOKKEEPING
Keywords: Coordination between development office and accounting office, Accounting software for nonprofit, Triangle of good financial management, Recruitment criteria.
This article goes beyond the basics in nonprofit bookkeeping. It discusses the issues and challenges. Not isolating the bookkeeping as a separate operation, it stresses the need of coordination with the development office to get the right information. It discusses the issues of using business accounting software for nonprofit financial management. Then it discusses the triangle in financial management-people, procedures and controls and software. What is helpful is that it also suggests the criteria for choosing accountants for nonprofit financial management.
Marianne Mancusi
Sept 5, 2000
http://www.office.com/global/0,2724,322-19526,FF.html

BASIC BOOKKEEPING FOR SMALL NONPROFITS
Keywords: Key factors in nonprofit bookkeeping, Importance of Records, Links to resources, Basic definitions
The first part of the article talks about how to keep financial records. What is special about this article is that the second part of it lists all the basic definitions one needs to know about bookkeeping such as cash flow, cash vs. accrual, journals and ledgers, etc. This can be a very resource for training purposes. It features links to other web resources that are very useful in accounting. These resources may not be all tailored to nonprofit financial management but there are the basics for any kind of accounting and bookkeeping.
March 15, 2001
http://nonprofit.about.com/careers/nonprofit/library/weekly/aa031501b.htm

NONPROFIT BUDGETING
Keywords: Budget, Budgeting process, Guide to budgeting
This article focuses on a specific area of bookkeeping. It explains what is a budget and why it is important to nonprofit organizations. Then there is a brief guide to how to begin a budgeting process. An embedded link leads to a resource on budgeting process from the Alliance on Nonprofit Management. At the end, there is an embedded link to "guide to budgeting" from the University of Pittsburgh.
May 20, 1998
http://nonprofit.about.com/careers/nonprofit/library/weekly/aa052098.htm

UBIT: UNRELATED BUSINESS INCOME TAX FOR NONPROFIT
Keywords: Unrelated business income tax
This article focuses on a special topic in nonprofit financial management-the unrelated business income tax. It explains three conditions that decide whether or not nonprofit income is taxable. It explains the complication in interpreting whether the organization has engaged in business and trade. At the end of the article, there are links to other articles on this topic.
March 15, 2000.
http://nonprofit.about.com/careers/nonprofit/library/weekly/aa031500a.htm

DISTINCTION BETWEEN ACCOUNTING AND BOOKKEEPING
Keywords: Bookkeeping, Accounting
Within nonprofit organizations, there are two procedures involved in financial management-bookkeeping and accounting. The distinctions between them are not very clear to lay people and the article explains the differences. This concept may be important, as they are really two distinct procedures.
2001
http://accounting.about.com/careers/accounting/library/weekly/aa052500a.htm

THE NONPROFIT ORGANIZATION HANDBOOK
Keywords: Bookkeeping procedures for nonprofit organizations
This is a very comprehensive book on nonprofit organization. The last part of the handbook is dedicated to bookkeeping procedures for the nonprofit organizations.
Tracy D. Connors Connors, Tracy D.
(1998)
The Nonprofit Organization Handbook, McGraw-Hill, New York.

Fundraising Resources on the Web

NONPROFIT FUNDRAISING AND GRANTWRITING
Keywords: Fundraising, Grantwriting, Linked Resources
This site covers a broad range of topics including the role of the Board, grantwriting, online fundraising, and fundraising software. It has a large number of links to articles on how to get started and continue a fundraising program.
Carter McNamara, MBA, PhD
Copyright 1999
http://www.mapnp.org/library/fndrsng/np_raise/np_raise.htm

BASICS IN DEVELOPING YOUR FUNDRAISING PLAN
Keywords: Fundraising, Planning, Linked Resources
Basic fundraising planning organized into an easier to follow format for the Nonprofit Fundraising and Grantwriting site. It has a large number of linked articles in a step-by-step process.
Carter McNamara, MBA, PhD
Revised 10/05/2000
http://www.managementhelp.org/np_progs/fnd_mod/fnd_raise.htm

PRINCIPLES AND PRACTICES FOR NONPROFIT EXCELLENCE
Keywords: Nonprofit Management, Financial Management, Fundraising, Best Practices
Principles for all aspects of nonprofit management are covered. Sections detailing best practices in fundraising and financial management are short and concise.
Minnesota Council for Nonprofits
http://www.mncn.org/pnp_doc.htm

CBBB STANDARDS FOR CHARITABLE SOLICITATIONS
Keywords: Fundraising Standards, Financial Management, Best Practices
Soliciting and fundraising standards sponsored by the Better Business Bureau. Guidelines are provided on topics such as public accountability, use of funds, and fundraising practices.
Council of the Better Business Bureaus
Copyright 2000
http://www.bbb.org/about/charstandard.asp

STANDARDS FOR EXCELLENCE: AN ETHICS AND ACCOUNTABILITY CODE FOR THE NONPROFIT SECTOR
Keywords: Fundraising Standards, Best Practices, Nonprofit Management, Financial Management
This site provides standards of accountability for many parts of nonprofit management including fundraising. Aspects of fundraising addressed include donor relations, acceptance of gifts, and employment of fundraising personnel.
Maryland Association of Nonprofit Organizations
Copyright 1998
http://www.mdnonprofit.org/ethicbook.htm

WHAT RISKS ARE ASSOCIATED WITH NONPROFIT FUNDRAISING
Keywords: Fundraising, Risk Management, Best Practices
This article deals with the risks of fundraising. It provides ten tips to consider on the risks involved and gives examples of what can go wrong.
Nonprofit Risk Management Center
http://www.allianceonline.org/faqs/rmfaq6.html

FUNDRAISING TIPS FOR STUDENT GROUPS
Keywords: Fundraising, Best Practices, Planning
Although focused on student fundraising, the first half of this site has a useful planning document on fundraising. Most of the best practices pertain to student organizations, but some would be useful for any nonprofit.
Harvard Public Service Network Revised
08/16/2000
http://www.fas.harvard.edu/~pbh/fundraise.html

GRANTS AND RELATED RESOURCES: NONPROFIT NEWSLETTERS AND CURRENT AWARENESS SERVICES
Keywords: Fundraising, Grantwriting, Annotated Links, News
A huge site with hundreds of links to newsletters for nonprofit news and current awareness. Each newsletter has an annotation detailing who publishes it and what it is about.
Michigan State University Libraries
Revised 05/16/2000
http://www.lib.msu.edu/harris23/grants/percat2.htm

GRANTS AND RELATED RESOURCES: NONPROFIT FUNDRAISING ELECTRONIC TITLES ONLY (296 LISTINGS)
Keywords: Fundraising, Grantwriting, Annotated Links, Online Resources
Gigantic site containing annotated links to hundreds of online resources. The site contains a mixture of fundraising and grantwriting resources. The annotations provide information on the publisher and topics covered by the sites.
Michigan State University Libraries Revised
03/12/2001
http://www.lib.msu.edu/harris23/grants/4fcelec.htm

FUNDRAISING
Keywords: Fundraising, Annotated Links, Frequently Asked Questions
Frequently asked questions from the Internet Nonprofit Center on fundraising. Questions are on a wide range of topics including telemarketing and online fundraising.
Internet Nonprofit Center: Nonprofit FAQ
Copyright 2001
http://www.nonprofits.org/npofaq/keywords/5j.html

Grants and Proposal Writing Resources on the Web

ANSWERING DIFFICULT FUNDER QUESTIONS
Keywords: Answers, Funders, Questions
Covers two of the most common, difficult to answer questions that funders typically ask nonprofits and suggests positive ways to respond. Written by a nonprofit consultant.
Gerald Bartlett
http://www.gb3group.com/articles/answering_difficult_questions.htm

FEARLESS GRANT SEEKING
Keywords: Grants Management, Process, Proposal Writing
Advice from a professional grantwriter and nonprofit consultant on how nonprofit organizations can streamline the grantwriting process.
Larissa Goldberg Brown
1998
http://www.spiritone.com/~lm/fearless.htm

GRANTSWEB SRA INTERNATIONAL
Keywords: Grants, Federal, Funding, Policy, Private, Regulations
Provides extensive links to sources of grant-related information divided into four categories: government resources, general resources, policy info and regulations, and private funding. Government resources section provides basic advice on searching for federal funding opportunities, as well as a nonprofit gateway to federal government information and services. General resources section includes links to various online grant forms, and private funding supplies foundation links and search tools.
Society of Research Administrators
2/28/01
http://www.srainternational.org/cws/sra/resource.htm

HOW TO FIND THE RIGHT FOUNDATION
Keywords: Application, Databases, Foundations, Grants, Online
Discusses how to increase the odds of receiving a grant by applying to foundations that support the grantseeker's specific geographical region or program objectives. Provides links to several online databases for locating foundations.
Stan Hutton
11/03/1999
http://nonprofit.about.com/careers/nonprofit/library/weekly/aa110399.htm

PROPOSAL WRITING FAQ
Keywords: Forms, Frequently Asked Questions, Grants, Proposal Writing
How to learn about proposal writing, what to include in a letter of inquiry, where to find Common Grant Application forms. The FAQ also provides a section linked to examples of various nonprofit documents, including grant proposals, letters of inquiry, and proposal cover letters.
The Foundation Center
http://fdncenter.org/learn/faqs/index.html#proposal

PROPOSAL WRITING SHORT COURSE
Keywords: Course, Examples, Grants, Guide, Proposal Writing
This two-part online course outlines a step by step approach to proposal writing that can be adapted to fit the needs of any nonprofit organization. The course provides examples and gives a suggested length for each component of the proposal.
The Foundation Center
http://fdncenter.org/learn/shortcourse/prop1.html

TGCI THE GRANTSMANSHIP CENTER
Keywords: Grants, Proposal Writing, Publications, Training
National organization offering grantsmanship training and low cost publications to nonprofits and government agencies.
Publications include The Grantsmanship Center Magazine, TGCI's Library of Winning Grant Proposals (available on CD-ROM) and a guide entitled Program Planning and Proposal Writing. Ten articles on proposal writing/grantseeking from the magazine are archived online.
TGCI
http://www.tgci.com

WHAT IS GRANTMAKING & PHILANTHROPY?
Keywords: Grants, General Purpose, Foundations, Philanthropy, Program Development, Support
Gives an overview of three basic types of grantmaking foundations: independent, corporate, and community/public. Also discusses the two most common types of grants: general purpose/operating support grants and program development/support grants.
Minnesota Council on Foundations
http://www.mcf.org/mcf/whatis/index.html

WRITING A SUCCESSFUL GRANT PROPOSAL
Keywords: Application Process, Consultant, Grants, Proposal Writing, Standard
Outlines and gives examples of the components of a standard grant proposal. Also provides suggestions for variations on the standard outline for a small project, a non-problem based project, a general operating proposal, and a capital or endowment proposal. Answers other questions about the grant application process and about hiring a grantwriting consultant.
Minnesota Council on Foundations
http://www.mcf.org/mcf/grant/writing.htm

Auditing and Fraud Prevention

POLICIES FOR FINANCIAL ACCOUNTABILITY
Keywords: Authority, Control policies, Financial policies, Budgeting policies, Asset protection policies, Major risk policies
This site provides a sample of a detailed list of policies governing how the board of a larger nonprofit might deal with financial oversight and controls. A good checklist of control policies and financial policies is included.
Gary J. Tribble for the Evergreen State Society
Updated on October 11, 2000
http://www.nonprofits.org/npofaq/18/58.html

NON-PROFIT ORGANIZATION INTERNAL FRAUD AND THEFT
Keywords: Internal fraud, Theft prevention, Records, Financial controls, Audits
This site provides a good summary of internal fraud and theft prevention tools including general steps to prevent internal fraud and theft, discussion of Board of Directors' responsibilities, and information on record keeping, financial control procedures, and audits. Non-profit organizations should have regular independent audits to examine and ensure the accounts are accurate.
Heads Up Fraud Prevention Association for the Resource Centre for Voluntary Organizations
http://www.heads-up.ca/Publications/Inside_Threat.pdf

NONPROFIT GENIE: 29 FINANCIAL MANAGEMENT FAQs
Keywords: Financial management, Elements of an accounting system, Definition of audit, Internal controls, Financial statements
This site provides answers to 29 frequently asked questions about nonprofit financial management including specific areas such as auditing and internal controls. This site also answers general questions as well such as how to choose computerized accounting software and what is the difference between cash and accrual basis accounting.
California Management Assistance Partnership
Last updated 2001
http://search.genie.org/genie/ans_result.lasso?cat=Financial+Management

BASIC CONSIDERATIONS IN RISK MANAGEMENT
Keywords: Financial management, Managing risks, Fundraising indicators, Resource management
This site contains a collection of risk factors in financial management of nonprofits and for-profit organizations. These risk factors include fundraising, financial management, volunteer management, and resource management. This site also provides related library links and information on online discussion groups.
Carter McNamara, Ph.D. for the Management Assistance Program for Nonprofits
Last updated 1999
http://www.mapnp.org/library/legal/rskmgmnt.htm

WHAT IS INTERNAL CONTROL?
Keywords: Internal control, Operations, Financial reporting, Compliance
Internal control is a process, effected by management and other personnel, designed to provide reasonable assurance regarding achievement of objectives in the following categories: 1) Operations -- relating to effective and efficient use of resources; 2) Financial reporting -- relating to preparation of reliable published financial statements; and 3) Compliance -- relating to compliance with applicable laws and regulations.
University of Texas at Austin Office of Internal Audits
Last updated November 12, 1999.
http://www.utexas.edu/admin/audit/control.html

INTERNAL CONTROL: SEPARATION OF DUTIES
Keywords: Risk management, Internal control, Separation of duties
Identifies some of the potential key (and high risk) transaction types with guidelines for separating duties. This is a chart that can be printed and used for reference purposes when instituting internal controls within an organization.
University of Texas at Austin Office of Internal Audits
Last updated 1999.
http://www.utexas.edu/admin/audit/forms/duties.gif