Cover image for The cash flow management book for nonprofits : a step-by-step guide for managers, consultants, and boards
Title:
The cash flow management book for nonprofits : a step-by-step guide for managers, consultants, and boards
Author:
Dropkin, Murray.
Personal Author:
Edition:
First edition.
Publication Information:
San Francisco, CA : Jossey-Bass, [2001]

©2001
Physical Description:
xxix, 204 pages ; 28 cm
Language:
English
Added Author:
ISBN:
9780787953850
Format :
Book

Available:*

Library
Call Number
Material Type
Home Location
Status
Item Holds
Searching...
HG4027.65 .D763 2001 Adult Non-Fiction Central Closed Stacks-Oversize
Searching...

On Order

Summary

Summary

The first and only guide of its kind to offer nonprofit executives help with the vital task of cash flow management!

Murray Dropkin--an expert in the field of nonprofit accounting and author of The Budget-Building Book for Nonprofits--reveals how to create an effective plan for cash flow management. This unprecedented guide offers you nuts-and-bolts suggestions for using this plan to develop successful strategies for the day-to-day and long-term financial planning of any nonprofit organization. Filled with to-do lists, sample forms, worksheets, schedules, policies and procedures, and checklists, The Cash Flow Management Book for Nonprofits is a fundamental financial management toolkit for nonprofit managers and board members.


Author Notes

Murray Dropkin, CPA, M.B.A., is president of CMS Systems, Inc. a consulting firm that specializes in helping clients in the nonprofit and for profit sectors improve their operational and financial operations. Dropkin is also managing partner of Dropkin&Company , Certified Public Accountants. He has experience in accounting, auditing, taxation and management consulting for government, commercial, and nonprofit organizations. He is the coauthor of The Budget-Building Book for Nonprofits (1998, Jossey-Bass).
Allyson Hayden, M.S.W., C.S.W. , is a senior consultant, editor, and writer for CMS Systems, Inc. She has fifteen years of experience writing for commercial and professional magazines, newsletters, and other publications in the areas of organizational development, health, medicine, fundraising, accounting, sociology, and psychology.


Table of Contents

List of Exhibitsp. xv
Prefacep. xix
Acknowledgmentsp. xxiii
The Authorsp. xxv
Introductionp. xxvii
Part 1 Cash Flow Management: Overviewp. 1
1 The Importance of Proper Cash Flow Managementp. 3
A. How Can Nonprofits Benefit from Effective Cash Flow Management?p. 3
B. What Issues Are Important in Cash Flow Management?p. 3
C. Who Will Benefit from a Better Understanding of Cash Flow Management?p. 4
D. Who Should Be Involved in Cash Flow Management?p. 4
E. An Examplep. 5
2 Types of Nonprofit Income: Financial and Cash Flow Management Considerationsp. 7
A. Classifying Incomep. 8
B. Managing Donated Income and Resourcesp. 9
C. Managing Earned Incomep. 15
D. Managing Asset-Generated Incomep. 18
E. Which Chapters in This Book Are Most Relevant to Your Organization?p. 19
3 Cash Flow Management and Internal Controls: An Overviewp. 21
A. The Control Environmentp. 21
B. Cash Receiptsp. 22
C. Receivablesp. 23
D. Cash Disbursementsp. 23
E. Petty Cashp. 25
F. Bondingp. 25
G. Investmentsp. 26
H. Payrollp. 26
I. Inventoryp. 26
J. Property and Equipmentp. 27
Part 2 Using Policies, Forecasts, Budgets, Strategies, and Technology to Improve Cash Flow Managementp. 29
4 Cash Flow Policy and Procedure Developmentp. 31
A. General Guidelines for Policy Developmentp. 31
B. Characteristics of Effective Policiesp. 32
C. Policies Related to Cash Flow Planning and Managementp. 33
5 Operating Budgets in Cash Flow Managementp. 35
A. Operating Budgets: Basic Conceptsp. 35
B. Overview of Budgetingp. 36
C. Budgeting Strategiesp. 41
D. Budgeting Calendarsp. 47
E. Budgeting Goals, Guidelines, Policies, and Proceduresp. 51
6 Cash Flow Forecastingp. 55
A. Fundamentals of Cash Flow Forecastingp. 55
B. Cash Flow Forecasting Based on the Operating Budgetp. 57
C. Short-Term Cash Flow Forecastingp. 59
D. Periodic Review of the Cash Flow Forecastp. 64
E. Corrective Actions for Forecasted Cash Shortagesp. 64
7 Cash Flow Reporting, Monitoring, and Analysisp. 66
A. Cash Receipts and Disbursements Reportsp. 67
B. Variance Reportsp. 68
8 Strategies for Improving Cash Flow Managementp. 75
A. Income Improvement Strategiesp. 76
B. Working Capital, Liquidity, and Financial Flexibility Strategiesp. 77
C. Investment Strategiesp. 81
D. Banking Strategiesp. 83
E. General Cash Flow Improvement Strategiesp. 84
F. Solutions for Short-Term Negative Cash Flow Problemsp. 85
G. Solutions for Serious Cash Flow Problemsp. 86
H. Effective Ongoing Cash Flow Managementp. 87
I. Special Topics on Cash Flow Improvementp. 88
9 Cash Flow Planning and Budgeting for Capital Projectsp. 94
A. Evaluating Your Organization's Operating Environmentp. 95
B. Evaluating Economic Variablesp. 96
C. Evaluating Capital Projectsp. 97
D. Financing Capital Projectsp. 98
10 Cash Flow Technologyp. 103
A. Technology as an Ongoing Concernp. 103
B. Key Considerations in Technology Upgradesp. 104
C. Cash Flow Technology and the Internetp. 107
D. Additional Considerations for Using Technology to Improve Cash Flowp. 109
Part 3 Specific Cash Flow Management Strategies for Various Types of Incomep. 111
11 Program Service Incomep. 113
A. Effective Policies and Proceduresp. 113
B. Cash Flow Forecasting and Planningp. 114
C. Cash Flow Reporting, Monitoring, and Analysisp. 116
D. Cash Flow Technology Issuesp. 116
E. Additional Considerationsp. 116
12 Income from Sales of Inventoryp. 118
A. Effective Policies and Proceduresp. 119
B. Cash Flow Forecasting and Planningp. 119
C. Cash Flow Reporting, Monitoring, and Analysisp. 120
D. Cash Flow Technology Issuesp. 120
E. Additional Considerationsp. 122
13 Income from Contributionsp. 123
A. Effective Methods for Soliciting Contributionsp. 125
B. Cash Flow Forecasting and Planningp. 129
C. Cash Flow Reporting, Monitoring, and Analysisp. 130
D. Cash Flow Technology Issuesp. 131
E. Additional Considerationsp. 132
14 Income from Grantsp. 133
A. Private Sector Grantsp. 133
B. Government Grantsp. 136
C. Cash Flow Forecasting, Planning and Grant Budgetingp. 136
D. Cash Flow Reporting, Monitoring, and Analysisp. 138
E. Cash Flow Technology Issuesp. 139
F. Additional Considerationsp. 139
15 Interest, Dividend, and Royalty Incomep. 140
A. Interestp. 141
B. Dividendsp. 142
C. Royaltiesp. 142
D. Cash Flow Forecasting and Planningp. 142
E. Cash Flow Reporting, Monitoring, and Analysisp. 143
F. Cash Flow Technology Issuesp. 144
G. Additional Considerationsp. 145
16 Income from Membership Duesp. 146
A. Opportunities and Considerationsp. 146
B. Cash Flow Forecasting and Planningp. 147
C. Cash Flow Reporting, Monitoring, and Analysisp. 149
D. Cash Flow Technology Issuesp. 151
E. Additional Considerationsp. 152
17 Income from Special Eventsp. 154
A. The Role of Special Events in Cash Flow Managementp. 155
B. Special-Event Planningp. 157
C. Cash Flow Forecasting and Planningp. 157
D. Cash Flow Reporting, Monitoring, and Analysisp. 159
E. Cash Flow Technology Issuesp. 159
F. Additional Considerationsp. 160
18 Real Estate and Rental Incomep. 162
A. Challenges and Considerationsp. 162
B. Cash Flow Forecasting and Planningp. 163
C. Cash Flow Reporting, Monitoring, and Analysisp. 165
D. Cash Flow Technology Issuesp. 165
E. Additional Considerationsp. 166
19 Income from Sales of Assetsp. 168
A. Sales of Various Types of Assetsp. 168
B. Cash Flow Forecasting and Planningp. 171
C. Cash Flow Reporting, Monitoring, and Analysisp. 172
D. Cash Flow Technology Issuesp. 172
E. Additional Considerationsp. 173
Part 4 Putting It All Togetherp. 175
20 Your Cash Flow Management Plan in Actionp. 177
A. Sample Cash Flow Improvement Plan: Overviewp. 177
B. Sample Cash Flow Improvement Plan: Step-by-Step Guidep. 181
21 Conclusionp. 183
A. Collaborationp. 183
B. Flexibilityp. 184
C. Information and Knowledgep. 184
D. Forethought, Planning, and an Orientation Toward the Futurep. 185
Part 5 Practical Cash Flow Management Resourcesp. 187
Resource A Sample Cash Flow Reports and Formsp. 189
Resource B Sample Grant Checklist for Cash Flow Planning and Managementp. 199