Friends Don't Let Friends...
Finish the phrase..."friends don't let friends"
A quantitative comparison of two numbers or more in an organization's financial statement
What is a financial ratio?
An annual informational tax return that most U.S. tax-exempt organizations are required to file with the Internal Revenue Service (IRS)
What is a 990?
A nonprofit with annual revenue of $500K should this once each year.
What is an audit?
The concept that a sum of money is worth more now than the same sum will be at a future date due to its earnings potential in the interim
What is the time value of money?
The difference between a statement of activities and an income statement
What is statement of activities is the name used for nonprofits, income statement is for-profits
How old can an asset be to be considered current?
What is one year?
4 required financial statements of nonprofits are...
What are: 1. Statement of Activities · 2. Statement of Financial Position · 3. Statement of Cash Flows · 4. Statement of Functional Expenses.
A list of all financial accounts in a company's general ledger, used to categorize and record transactions for financial reporting, budgeting, and analysis
What is a Chart of Accounts?
Garry's name for a leader that is able to assess someone else's skills and strengths and use them; able to assess their own weaknesses and ensure that they're covered; enough confidence to lead without being overcompensatory
What is Kermit?
The difference between statement of activities and statement of financial position
How to calculate the program expenses ratio?
What is: Program Expenses / Total Expenses
Number of types of 501c organizations
What is 29?
The Accounting Equation
A = L + Equity (Net Assets)
Name 5 ways to cut costs in leaner times
What are: streamlining operations through automation, reducing overhead by renegotiating leases or consolidating space, cutting non-essential spending and subscriptions, optimizing staffing with part-time or freelance workers, and renegotiating with vendors for better prices?
What are: revenues, expenses, changes in net assets
Reasons that an organization would use financial ratios for a board meeting
What are: demonstrate changes in points of time; demonstrate fiscal responsibility; demonstrate comparison to peers
Revenue can be these two types
What are restricted and unrestricted?
These are alternatives to an audit if your organization isn't quite ready yet
What are...financial review, internal audit, financial compilation?
Describe the 80/20 rule
80% of your income typically comes from 20% (or less) of your patron base
What does the phrase "friends don't let friends budget alone" mean, and why is this important?
What is...ensuring accuracy, ensuring board and staff buy-in, and creating internal controls?
A financial metric, also known as the acid-test ratio, that measures a company's ability to pay its short-term liabilities with its most liquid assets
What is: Natural expenses are classified by their nature, such as salaries, rent, and supplies, while functional expenses are classified by their purpose, such as program services, management and general, and fundraising?
The purpose of a Chart of Accounts
TVM is important to nonprofits because...
What is...for budgeting accurately; for being a strong steward of donor dollars; for understanding investments longterm