Financial management of not-for-profit organisations
As we all know, many investors were caught out during the GFC investment-wise, and those caught out also included some in the so-called not-for-profit (NFP) sector. Actually the name NFP is a bit misleading, as many of these enterprises work to make a profit to enable them to fund their principal charitable or educational activities. The main difference for NFPs is the objective is not to maximise shareholder returns.
CPA Australia has recently has created a new guide — Financial Management of Not-for-profit organisations — to help small not-for-profit organisations understand how their financial position can play a key role in the successful provision of NFP services.
The publication is essentially a re-work of an earlier CPA Australia publication developed with the Victorian Government titled the Financial Survival Guide for Small Business, but modified for the not-for-profit sector. Not-for-profit (NFP) organisations are an essential part of every community and understanding an organisation’s financial position is vital to the successful provision of NFP services.
Given it is aimed at small NFPs, I’m not expecting it will be that useful to, say the Red Cross. But I hope you find it an interesting read. And if so, share it with your colleagues. If not, please let us know.
This is my final blog for 2010. Over the next two weeks I’ll be catching a few waves down at the beach with my family. I wish you all a happy and restful festive season and a prosperous new year — and may we all ride a wave of economic recovery in 2010.