Transcript Finance Management for Fund Development Directors in Girl

NEW INSIGHTS ON
BOARD RESPONSIBILITIES
What Do These Financial Statements Mean?
WHY DOES THE BOARD NEED TO KNOW
HOW TO READ BETWEEN THE LINES?
Yvonne Norton Leung,
Consultant to Nonprofits
DEAL MAKERS MARKETPLACE
2006 Omaha Nebraska
“An organization is only as effective as it
has resources to meet its purposes.
Providing adequate resources is first and
foremost a Board responsibility.”
Richard Ingram. Ten Basic Responsibilities of
Nonprofit Boards
US Charitable Giving in 2004
totaled $249 Billion
Individuals – 84%
76% current + 8% bequests
Corporations – 5%
Foundations – 12%
Source: AAFRC, Giving USA 2003
BOARD’S LEGAL DUTIES
DUTY OF OBEDIENCE
Carry out the mission legally
DUTY OF CARE
Operate in good faith, with reasonable care,
in the best interests of the organization
DUTY OF LOYALTY
Avoid conflicts of interest, maintain
confidentiality and discretion
BOARD OF DIRECTORS CHARGE
 STEWARDSHIP OF THE MISSION
Ensure that services support the mission
Function within the legal parameters
 STRATEGIC LEADERSHIP AND DIRECTION
Advocate for the mission
Utilize corporate planning system strategically
Approve the corporate goals, action plan and budget
 FISCAL STEWARDSHIP OF THE CORPORATION
Develop annual & long-range fund development plans
Ensure adequate human resources
BOARD RESPONSIBILITY FOR
FINANCIAL OVERSIGHT
Checks and balances
Budget review and approval
Audit review and approval
Timely accounting reports, GAAP
Policies on grants sustainability, reserves,
investments, property
Setting goals and outcomes
CURRENT ISSUES
Sarbanes-Oxley Act
Fiduciary Stewardship, Ethics, Conflicts of
Interest
Financial Accounting Standards Board
Internal Revenue Service, 990s
Nonprofit Corporation Act
Federal Election Commission/501 c 4
US Patriot’s Act
Federal/State Legislation Proposals
TOOLS AND RESOURCES
Audit, IRS Form 990, and Management Letter
Accountant and Auditor
Five-year Analysis
Prior Financial Data
Monthly or quarterly statements
Training and Courses
RULES FOR FUND DEVELOPMENT
What does your organization do?
Who does it help?
What difference does it make to a life or
difference to the world?
How long have you been going?
What are your plans for the future?
How are you funded? All sources and uses.
Prepare case studies of good examples of work
you have done.
RULES FOR SUSTAINABILITY
Think and act strategically
Leadership balanced with continuity
Actively manage people and resources
through policies and budget
Link organizational goals to systems,
budget, and human resources
Focus on core competencies and build new
ones
Form partnerships and alliances
Learn from high performers
ONLINE RESOURCES
 www.milanomix.org Management Information
Exchange (MiX) Living Cities & Milano Grad School of
Management and Urban Policy.
 www.knowledgeplex.org Fannie Mae Foundation best practices, discussions, & research.
 www.nifa.org Neb Investment Finance Authority
 www.neded.gov Neb Department of Economic
Development
 www.housingdevelopers.org