I’m working on a sociology discussion question and need an explanation and answer to help me learn.
Financial Management of Nonprofit Organizations and Funding
Human service nonprofit organization leaders are responsible for managing many tasks at the same time and financial management and effective fundraising must be a priority or the organization will have little chance to live up to the challenges of its mission. You will be supported by the expertise of the chief financial officer and a contracted certified public accountant but you will need to know the basics of financial management, set fundraising goals, allocate resources, and develop action steps and timelines.
- What are some of your personal strengths and weaknesses related to financial management and budgeting? How do you plan to better prepare yourself for the financial functions you will need to perform as a human services administrator.
- What are some of your personal strengths and weaknesses related to fund development?
- How do you plan to better prepare yourself for the fundraising functions you will need to perform as a human services administrator.
After reviewing the readings, search for a nonprofit agency in your community, examine the IRS 990 form, and describe the financial position of the organization.
- Does it appear to have diversified sources of revenue? How vulnerable or unpredictable are these sources likely to be?
- What were its major categories of expenses for the year shown? What unforeseen expenses could arise?
- What kinds of assets does it hold? Does it have debt?
- What produced its cash flow for the year shown? Does it have endowment or other permanently restricted assets?
Chapter 8: “Budgeting and Finance”
Chapter 11: “Fund Development”
Watson, L. D., & Hoefer, R. A. (2013). Developing Nonprofit and Human Service Leaders. SAGE Publications, Inc. (US). https://mbsdirect.vitalsource.com/books/9781483324944