Financial Management
Effective financial management is a critical part of organisational sustainability and your accounting and reporting systems in your organisation should be accurate and transparent.
Financial management also includes proper management of assets, accountability reporting on grants, reporting annual accounts, and legal requirements such as audits, reviews and annual returns (Source: Ministry of Health NGO Health and Disability Network).
For smaller organisations it doesn’t need to be complicated, in essence you just need to be able demonstrate the money you have received and how it has been spent.
He aha te mea nui o te ao
What is the most important thing in the world?
He tangata, he tangata, he tangata
It is the people, it is the people, it is the people
Māori Proverb
General Information
Articles
Reading
Introduction to financial management
Financial management is managing money received or spent. Doing it well is essential to any community group’s survival. Financial management has three basic parts to it: planning on how to fund raise and spend money, record keeping and reporting.
Specific Topics
Reading
Nonprofit Finance: 12 Golden Rules
Articles on golden rules for nonprofit finance, including budgeting, diverse funding sources, and interdependence.
Free Accounting Assistance through Community Accounting Aotearoa.
This initiative assists community groups outside the main centres with their financial accounting, using virtual technology such as Zoom with assistance of distance students enrolled in accounting degrees at Massey University. Community groups only require a computer with a camera and an internet connection to become involved.
For information please click here
This resource is mainly directed at personal finance and is full of useful information about how money pressures affect mental health, and it explores practical, essential skills to better manage finances and debt.
Specific Information
Reading
To determine what Reporting Tier your organisation is in and what your obligations are.
Do we need to have our accounts audited?
Reading
Find the answer here
External Reporting
Reading
Developing and publishing financial reporting standards to ensure the content, reliability and quality of financial and performance statements meet minimum standards. This ensures governance groups, members, funders, and donors can read them and make informed decisions. Details about the reporting standards are available on https://www.xrb.govt.nz/accounting-standards/not-for-profit/
Webinar
Managing your money and assets webinars
Range of webinars on financial management by the Ministry of Health NGO Health and Disability Network
Intro to Non Profit Finance
Video
Intro to Nonprofit Finance
Lecture on financial management including how to read a balance sheet.
A Five-Step Guide to Budgeting for Nonprofits
Developing an operating budget for not for profits