Financial Leardership for Nonprofit Executives: Guiding Your Organization To Long-term Success Book

Introduction: How to Use This Book
CompassPoint's Finance Philosophy
Who This Book Is For
How to Use This Book
 
1. Defining Financial Leadership
Mission or Money?
Financial Leadership
Five Leadership Principles
  1. Move beyond mission-versus-money thinking
  2. Cultivate financial leadership on both staff and board
  3. View the nonprofit business as an interdependent set of programs and activities
  4. Recognize the relationaship between strong infrastructure and strong programs
  5. Set a tone of financial accountability and transparency
Evaluate Your Financial Leadership
Summary
 
2. Getting Financial Data You Can Trust
Staffing
Accounting Practices
  1. Treatment of restricted contributions
  2. Functional classification of expenses
  3. Employee time tracking
  4. Allocation of common costs
  5. Accrual basis accounting
  6. Capitalization and depreciation
Accounting Systems
Evaluate Your Staffing, Practices, and Systems
Summary
 
3. Assessing Your Organization's Financial Health
The Financial Leader's Key Assessment Questions
  1. What are our immediate financial strengths and vulnerabilities?
  2. What are our long-term financial strengths and vulnerabilities?
  3. Do our constituents perceive us as efficient and competitive?
Evaluate Your Organization's Financial Health
Summary
 
4. Financial Planning
Guiding Principles of Effective Budgeting
Building the Annual Budget
  1. Define the planning context and goals
  2. Estimating costs
  3. Forecasting income
  4. Striking the balance
  5. Approving the plan
Evaluate Your Financial Planning
Summary
 
5. Communicating Progress
Match the Message to the Audience
  Program managers
  Development director
  Management team and board finance committee
  Full staff and board
  Funders
  Constituents
  IRS and regulators
Evaluate Your Communication of Financial Progress
Summary
 
Conclusion
Appendix A: Key Terms
Appendix B: Red/Yellow/Green Evaluation Forms
Appendix C: Resources