Finance Fundamentals for Nonprofits – Building Capacity and Sustainability, with Website

Preface ix
<p>Acknowledgments xi</p>
<p>CHAPTER 1 Introduction: How Nonprofits Are (and Are Not) Like Businesses 1</p>
<p>What Are Nonprofits? 2</p>
<p>Why Are There Nonprofits? 4</p>
<p>Nonprofits as Businesses 5</p>
<p>Advantages and Disadvantages of Being Nonprofit 8</p>
<p>This Book s Agenda 11</p>
<p>Concluding Thoughts 14</p>
<p>CHAPTER 2 Accounting: Measuring Past Performance 15</p>
<p>Basis of Accounting and Audits 16</p>
<p>Statement of Financial Position 17</p>
<p>Statement of Activities 20</p>
<p>Other Statements and Notes 26</p>
<p>What to Look For 27</p>
<p>IRS Form 990 30</p>
<p>Concluding Thoughts 31</p>
<p>CHAPTER 3 Investing: Looking to the Future 33</p>
<p>Investing 33</p>
<p>Endowment 39</p>
<p>Values–Centered Investing 42</p>
<p>Concluding Thoughts 46</p>
<p>Appendix 47</p>
<p>CHAPTER 4 Budgeting: Taking Control of the Present 49</p>
<p>Budgeting Practices 49</p>
<p>Budget Structure 53</p>
<p>Reconciling Budgets and Financial Statements 55</p>
<p>Reconciling Budgets and IRS Form 990 63</p>
<p>Concluding Thoughts 64</p>
<p>CHAPTER 5 Nonprofits in History and Tax Law: Why Nonprofits Do What They Do 65</p>
<p>Classification 66</p>
<p>Unrelated Business Income Tax 75</p>
<p>Intermediate Sanctions 76</p>
<p>Lobbying and Political Action 78</p>
<p>State Law 79</p>
<p>Concluding Thoughts 80</p>
<p>CHAPTER 6 Ordinary Service Providers: Serving the Public Today 81</p>
<p>Long–Term Objective: Maintaining Services 82</p>
<p>Short–Term Objective: Resilience 85</p>
<p>Current Objective: Paying Bills 89</p>
<p>Application 90</p>
<p>Benchmarking 91</p>
<p>Concluding Thoughts 94</p>
<p>Appendix 94</p>
<p>CHAPTER 7 Membership Associations: Serving People with a Common Purpose 97</p>
<p>Membership Associations 98</p>
<p>Cooperatives 101</p>
<p>Capacity and Sustainability 103</p>
<p>Two Applications 104</p>
<p>Concluding Thoughts 105</p>
<p>Appendix: ASAE/CAL Metrics of Financial Capacity for Membership Associations 106</p>
<p>CHAPTER 8 Endowed Service Providers: Serving the Next Generation, Too 107</p>
<p>Introduction 108</p>
<p>Long–Term Objective: Maintaining Services 111</p>
<p>Short–Term Objective: Resilience 113</p>
<p>Current Objective: Paying Bills 115</p>
<p>Application: Famous University 116</p>
<p>Building an Endowment 117</p>
<p>Concluding Thoughts 119</p>
<p>CHAPTER 9 Grantmaking Organizations: Serving Service Providers 121</p>
<p>Foundation Types 122</p>
<p>Financing Models 123</p>
<p>Capacity and Sustainability 126</p>
<p>Illustrations 131</p>
<p>Concluding Thoughts 131</p>
<p>Appendix: S&amp;P Metrics of Financial Capacity for Grantmakers 133</p>
<p>CHAPTER 10 Beyond Sustainability: Managing Revenue to Maximize Growth 135</p>
<p>Revenue Sources 135</p>
<p>Theories of Revenue Compensation 139</p>
<p>Application 144</p>
<p>Unfair Competition 145</p>
<p>Concluding Thoughts 146</p>
<p>CHAPTER 11 The Nonprofit Difference: Doing Good Well 149</p>
<p>Control Environment 150</p>
<p>Being Businesslike 153</p>
<p>Concluding Thoughts 158</p>
<p>Notes 159</p>
<p>Glossary 173</p>
<p>References 187</p>
<p>About the Web Site 201</p>
<p>About the Author 203</p>
<p>Index 205</p>