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Are you robbing Peter
to pay Paul?
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Ready to Serve! Ready to
Impact!
Mission
To save lives
To be a leading voice in the
fight
To Increase local and
national attention to the
devastating IMPACT that
breast cancer has in the
African American community
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Ready to Serve!
Ready to Impact!
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3 Fundamental Questions
Who is Peter? Who is
Paul?
Why is one robbing from
the other?
If we don’t ……………
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IF WE DON’T……..
If we don’t figure out how to get out of this
cycle..……
If we don’t answer the fundamental questions………
If we don’t provide solutions and systems to
provide relevant , accurate accounting……..
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If we don’t, then our IMPACT is
Diminished
- Donors give to
organizations that
steward well
-Not compliant
-Lose Credibility
-Continued
Cycle of
Chaos
-Conversation becomes
less about the mission
and more about the
internal chaos
-Governmental
Grants out of
the question.
They require
reporting
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Impact IS our Goal…so
let’s Get there!
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Who is Peter? Who is Paul?
Why is one robbing from the other?
Who is Peter?
Who is Paul?
PETER
PAUL
Revenue & Support
Total
Contributions/Donations
Conference & Programs
Conference
Government Grants
Other
Interest Income
TOTAL REVENUE
$686,598
$337,677
$139,443
$100,000
$8,683
$1,455
1,273,856
EXPENSES
Total
Program Services
$1,023,320
Management and General
Fundraising
TOTAL EXPENSES
$137,936
$110,369
$1,271,625
NET
$2,231.00
+
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How is one robbing the other?
Scenario #2
-Dollars were allocated to your
-Donor gives monetary donation
local chapter for BCAP.
specifically to be used for Young
Sisters Initiative.
-You needed to buy food items for a
-Rent is due. Rent is a Management &
chapter meeting.
General item.
-National is needing receipts for
-Payment for rent is pulled from the
dollars allocated to gain matching
YSI bucket of funds.
funds for BCAP.
Scenario #3
Scenario #1
-National has asked for records of
donations on the chapter level along with
expenditures for proper recording.
-Your chapter forgot to complete
documents.
-Your chapter lost the sheet of paper
where expenses were being tracked.
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Best
Practices
 Budget Annually
A. Your team should be getting together annually to put #’s to
your vision & programs. Corporate entities I deal with start
this conversation and process in October.
B. Once the budget is prepared and approved, don't put it
away in a dark corner. For the budget to be useful and
effective, everyone should take it seriously.
C. The budget should be compared with the actual experience on a
regular basis (i.e. monthly or quarterly) to allow board
members and executive officers to measure whether the
organization's goals, set by the budget, are being met.
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Best
Best
Next Stop…Pearland!
Practices
Practices
 Establish Processes & Systems to account for inflow of
Restricted + Non-Restricted Dollars along with outflow of Peter
+ Paul expenses
A.
B.
How are you accounting for donations and expenditures on the chapter level? Who is responsible
for that?
What documents are necessary to keep National informed on activities on the chapter level? Are you
timely turning in requested documents?
C.
D.
Are you meeting deadlines set by National for reporting (i.e. grant matching)?
How do you connect deposits to donors? How do you identify restricted vs. non-restricted general
dollars?
E.
What is the process by which bills/expenses are paid? Is there a approval process?
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Best
Practices
 Record keeping for Quarterly/Yearly Reporting
A.
A public charity should set up a record keeping system using an accounting method
that is appropriate for proper monitoring and reporting of its financial activities for the tax
year. If a public charity has more than one program, it should ensure that the records
appropriately identify the income and expense items that are attributable to each program.
B.
A nonprofit record keeping system should generally include a summary of
transactions. This summary is ordinarily written in the public charity’s books (for example,
accounting journals and ledgers). The books must show gross receipts, purchases, expenses
(other than purchases), employment taxes, and assets. For most small organizations, the
checkbook might be the main source for entries in the books while larger organizations would
need more sophisticated ledgers and records. A public charity must keep documentation that
supports entries in the books.
Supporting Documents
Organization transactions such as contributions, purchases, sales, and payroll will generate supporting documents. These
documents — grant applications and awards, sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks —
contain information to be recorded in accounting records. It is important to keep these documents because they support the
entries in books and the entries on tax and information returns. Public charities should keep supporting documents organized
by year and type of receipt or expense. Also, keep records in a safe place.
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Best
Next Stop…Pearland!
Practices
• EXAMPLE OF A
SIMPLE PROCESS:
Deposits
For every deposit made , a member of your
team should makes copy of check(s). Attach
check to deposit slip noting whether funds
are restricted or not. (Restrictions, if any,
are imposed by donor)
Expenses
All expenditures should have a receipt.
Attach receipt to either a expense report or
check request form.
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Our WHY
-Minimizes risk to the board of directors
and the organization
-Facilitates timely and accurate financial
statements and thereby effective
decision making
-Ensures accountability to members and
the public
-Helps the organization operate
effectively and efficiently
-Helps organization meet governmental
obligations
-Donors looking to give can do so with
Confidence
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