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. The larger the organisation the more important financial accounting and reporting systems become to keep track of income and expenditure.
Finance in a Crisis
Here are the resources we used for a short session with Nick Dangerfield. Seven key actions to take to review your situation.
Free Accounting Assistance through Community Accounting Aotearoa.
This initiative assists community groups outside the main centers 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 contact:
Geoff Andrews — Project Manager
Mob: 021 0546240
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.
The Keys to Growing Your Nonprofit: Effective Finance & Operations Management
A practical three-part online training series on not for profit finance and operations. It explores best practices in the financial, accounting, risk management, insurance, advocacy, and lobbying arenas with domain-specific experts, who will share their hard-won, field-tested tips, tools, and tactics.
Financial management for NFP’s
Guide for financial management of not-for-profits
Financial record keeping
How to read financial statements
Statistics that matter – financial summary reporting
Information on tax responsibilities
Computerised accounting systems
Source: CommunityNet Aotearoa
Charities Reporting Standards for registered Charities
To determine what Tier your organisation is in and what your obligations are.
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. https://www.xrb.govt.nz/
Details about the reporting standards are available on https://www.xrb.govt.nz/accounting-standards/not-for-profit/
Nonprofit Finance: 12 Golden Rules
Articles on golden rules for nonprofit finance, including budgeting, diverse funding sources, and interdependence.
Not-for-Profit Budgeting and Financial Management by Edward J. McMillan
Offers a financial planning system that is easy to use and monitor plus ensuring true fiscal accountability in the complex not-for-profit arena.