challenges for nonprofits

17
CHALLENGES FOR NONPROFITS Presented by Tammy Craig, CFO October 2010

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Nonprofits face special challenges when it comes to funding, revenue generation and accounting. Tammy Craig looks at a few of them from a CFO's perspective.

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  • 1. CHALLENGES FOR NONPROFITS Presented by Tammy Craig, CFOOctober 2010

2. 7 Challenges

  • Money vs. Mission
  • Funding
  • Human Resources
  • Evaluation
  • Board Development
  • Information Management
  • Collaboration

3. Money vs. Mission

  • Melding of business and mission
  • Group decisions and opinions
  • Traps to avoid
    • Money for mission vs. mission for money
    • More time looking for funding and accounting for task performance
  • Fiduciary responsibility
  • No money, no mission

4. Funding

  • Responsive to changes
    • Economic environment
    • Political environment
  • Diversity of funding
  • Fundraising/donor fatigue/recruit-and-retain/enhance donor loyalty
  • Recapture of indirect costs

5. Human Resources

  • Attracting and retaining skilled staff
    • Salaries
    • Time to train and develop
    • Different motive
  • Developing leadership and succession planning
  • Managing multiple functions and roles

6. Evaluation

  • Evaluating our worth and accessing human lives and conditions
  • Measurable proof and impact
  • Impact on communities and populations
  • Reporting outcomes vs. outputs

7. Board Development

  • Recruiting high impact board members
  • Recruiting highly skilled board members
  • No $ incentive to be on board
  • Busy successful people

8. Information Management

  • Efficiency
  • Reporting
  • Data collection/analysis
  • Communication

9. Collaboration

  • Integration of strategic partnerships
    • Public policy
  • Conflict of interest

10. Financial Reporting

  • Revenue recognition
  • Budgeting revenue/cost
  • UBIT
  • Functional expenses
  • Accountability pressures
  • Grant reporting
      • Restricted funds/tracking net assets

11. Financial Analysis 12. Nonprofit recipe for success

  • Fill three pots with water.
  • Place each pot on a high fire.
  • Bring to a boil.
  • In the first pot, place carrots.
  • In the second pot, place an egg.
  • In the last pot, place coffee beans.
  • Boil for 15 minutes.

13.

  • The carrot went into the water hard and came out soft.
  • The egg went into the water soft and came out hard.
  • The coffee beans remained the same, but changed the water into coffee.

Nonprofit recipe for success 14. Nonprofit recipe for success 15.

  • Be the coffee bean.

Nonprofit recipe for success 16. Lets make coffee! 17. www.ParentsAsTeachers.org