Financial management is as important in a non-profit/voluntary sector setting as in a business. You may have accountability to the membership then additionally to funding partners, granting bodies, government agencies, etc.
Accurate record keeping is the key to making this function in your agency work. It is highly recommended to use an accounting program such as Quick Books or Sage50 (Simply) Accounting. These programs will allow quick and accurate reports at meetings, in application situations, and in other situations when required.
A sound risk management practice is to have a financial policy that outlines reporting requirements and timelines, and who that responsibility is assigned to, as per the Bylaws.
One of the first steps in managing your organization’s funds is creating a budget to guide not only your spending but also sponsorship, fees and other sources of income.
Resources
- Financial Responsibilities of Not-for-Profit Boards: The Muttart Foundation
- Finance: Charity Village
- Finance & Administration: Imagine Canada
- A 5 Step Guide to Budget Development: Wallace Foundation
- The Budget Process: Non-profit Accounting Basics
- Creating a Budget that Works for you: Non-profit World
- Budgeting for Not-for-Profit Organizations: Alberta Government
- Planning & Writing an Annual Budget: Community Tool Box
- Governing Good: Governance and Financial Management