Non-Profit Accounting and Finance Training Course.

Introduction

Non-profit organizations (NPOs) operate with the primary goal of fulfilling social, environmental, or charitable missions rather than generating profits. However, effective financial management is crucial for ensuring sustainability, transparency, and accountability. This 5-day training course is designed to provide a comprehensive understanding of the unique accounting and financial practices that apply to non-profit organizations. Participants will learn how to manage donations, grants, and other funding sources, comply with regulatory requirements, and prepare financial statements that demonstrate accountability to donors, funders, and stakeholders.

Course Objectives

• Understand the fundamentals of accounting and financial reporting specific to non-profit organizations.
• Learn the different types of revenue sources, including donations, grants, and program fees, and how to account for them.
• Explore best practices for budgeting, forecasting, and financial planning in a non-profit setting.
• Gain insights into internal controls and financial management practices for non-profits.
• Develop skills to prepare financial statements in accordance with non-profit accounting standards (such as FASB, GAAP, and IFRS).
• Learn how to maintain transparency and demonstrate accountability to donors, funders, and regulatory bodies.

Who Should Attend?

• Non-profit financial managers, accountants, and treasurers responsible for managing finances and accounting for non-profit organizations.
• Executive directors and other senior managers who want to better understand financial management in the non-profit sector.
• Grant managers and fundraisers who need to understand the financial implications of managing donations and grants.
• Auditors and consultants working with non-profit organizations.
• Anyone interested in pursuing a career in non-profit financial management.

Day 1: Introduction to Non-Profit Accounting and Financial Management

• Session 1: Overview of Non-Profit Organizations and Their Financial Needs
  • Understanding the non-profit sector: mission-driven, funding sources, and stakeholders
  • Key financial challenges and opportunities for non-profits
  • The role of financial management in achieving non-profit sustainability and impact
• Session 2: Accounting Frameworks for Non-Profits
  • Overview of the accounting standards for non-profits (GAAP, FASB, IFRS, and others)
  • Key differences between for-profit and non-profit accounting
  • Introduction to fund accounting and its importance for non-profits
• Session 3: Financial Planning and Budgeting in Non-Profits
  • Developing financial plans that align with mission-driven goals
  • Best practices for creating budgets in a non-profit context
  • Forecasting and tracking program-related expenses and revenues

Day 2: Revenue Sources and Fundraising Accounting

• Session 1: Donations and Grants Accounting
  • Recording donations and grants in accordance with non-profit accounting standards
  • Understanding restricted vs. unrestricted funds and their impact on financial reporting
  • Recognizing and tracking in-kind donations and volunteer contributions
• Session 2: Fundraising Activities and Special Events
  • Accounting for fundraising income, expenses, and contributions
  • Financial reporting requirements for fundraising events and campaigns
  • Managing donor restrictions and the impact on resource allocation
• Session 3: Earned Revenue and Program Fees
  • Understanding and accounting for earned revenue, including program fees, service income, and merchandise sales
  • How to track and report earned revenue alongside donations and grants
  • Compliance with applicable tax rules for non-profits

Day 3: Non-Profit Financial Statements and Reporting

• Session 1: Statement of Financial Position (Balance Sheet)
  • Key components: assets, liabilities, and net assets (fund balance)
  • Understanding unrestricted, temporarily restricted, and permanently restricted net assets
  • Best practices for preparing and interpreting the balance sheet for non-profits
• Session 2: Statement of Activities (Income Statement)
  • Key components: revenues, expenses, and changes in net assets
  • Categorizing and reporting income based on restrictions and donor intent
  • Understanding the impact of donor-restricted funds on financial statements
• Session 3: Statement of Cash Flows
  • How to prepare and interpret the statement of cash flows for non-profits
  • Understanding operating, investing, and financing activities in the non-profit context
  • Managing cash flow to ensure sustainability and operational efficiency

Day 4: Internal Controls and Compliance in Non-Profit Financial Management

• Session 1: Internal Controls in Non-Profit Organizations
  • The importance of internal controls to safeguard assets and ensure accuracy
  • Implementing policies for financial reporting, budgeting, and authorization of transactions
  • Preventing fraud and ensuring accountability through segregation of duties
• Session 2: Regulatory and Legal Compliance
  • Understanding tax-exempt status and IRS regulations for non-profits
  • Reporting requirements for non-profits (Form 990, audit requirements, and state filings)
  • Ensuring compliance with laws governing donations, grants, and fundraising
• Session 3: External Audits and Financial Transparency
  • The audit process for non-profits: preparing for and responding to an audit
  • The importance of transparency in financial reporting to donors, funders, and regulators
  • How to interpret audit reports and use findings to improve financial practices

Day 5: Advanced Topics in Non-Profit Financial Management

• Session 1: Cost Allocation and Program Expenses
  • Understanding the allocation of expenses between programs, fundraising, and administration
  • Using cost allocation methods to track and report program expenses accurately
  • How to prepare and report functional expense classifications in financial statements
• Session 2: Strategic Financial Management for Non-Profits
  • Aligning financial strategy with organizational goals and mission
  • Long-term financial sustainability: managing reserves, endowments, and investment income
  • Risk management and financial forecasting for future growth and stability
• Session 3: Building Donor Trust through Financial Transparency
  • Best practices for communicating financial information to donors and stakeholders
  • How to create an effective financial report for donors and funders
  • Using financial information to strengthen relationships with key stakeholders

Course Conclusion

• Review of Key Learnings
• Interactive Q&A Session
• Certification of Completion
• Networking Opportunity