Services for Your Evergreen Not-for-Profit to Focus on Community Growth and Funding Sources
Committed To Making Mission Driven Non-Profits THRIVE!
Non-Profit Executive Directors & Boards!
How would you like me to become your CFO for the next 8 weeks and analyze your financial data to create a roadmap unique to your mission that would allow you to:
Present clearly to your board and tie your mission into your annual, 90 day, 30 day, and weekly financial objectives and KPI’s,
Develop specialized budgeting based on objectives and set up processes to assess budget vs. actuals to hold your team accountable,
Expand donor attraction, grant applications, and pledges to ensure you have the financial means to achieve your mission, and
Develop reports that are meaningful to management and stakeholders to understand the financial position and performance of programs and the overall organization.
Does your organization have a pressing need?
Cost Allocation Analysis
As defined by the Code of Federal Regulations (CFR) Section 200.56: Indirect costs mean those costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved.
If you have some experience with accounting, you may have a good understanding of the direct costs incurred by each of your programs. These are the items included on the face of financial statements -- specifically the statement of activity, the non-profit equivalent of the profit and loss.
Traditional accounting breaks down indirect (or overhead) costs by functions (e.g. administration, marketing, operations), rather than by programs. It fails to capture the relationship between these costs and the organization’s activities, and consequently, its mission.
For transparency, or to make a simpler presentation of the financial standing, two categories are required.
Program services:
Activities that result in a good or service being distributed to beneficiaries, customers, or members that fulfill the purposes or mission for which a nonprofit exists
Supporting Services:
Activities other than program services, which can include:
Management and General(M&G): Activities related to oversight
Fundraising: Activities to entice potential donors to contribute
Membership Development: Activities to gain or retain members
This can be a source of scrutiny for NPOs. The result is a cloudy economic picture where nonprofit management is uncertain of the financial health of their program areas and beneficiaries are unclear about where public funds are being used in the best way.
The allocation of all organizational costs, direct and indirect, across relevant programs or sites is at the heart of true-cost analysis.
Appropriate allocation of many types of costs can include elements of significant judgment. Your beneficiaries, the board of directors, and the organization's future prospects depend on your implementation of long-standing processes to ensure assurance procedures are executed.
Organization and Management Development Help
Nonprofit leaders, managers, staff, volunteers, and service providers can complete a 12-module, online program for free at any time from anywhere in the world. All materials are available online.
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