Application of Financial Management to a Non-Profit OrganizationEssay Preview: Application of Financial Management to a Non-Profit OrganizationReport this essayIntroductionApplication of financial management to a non-profit organizationFinancial Management is the operational activity of an organization responsible for obtaining and effectively utilizing the funds critical for efficient operation. The primary goal of non-profitable organization is not to increase shareholder value, but to provide most socially desirable need on an ongoing project (James, 2013). NPOs most lacks the financial flexibility of a commercial enterprise because it relies on the resource from non-profitable organizations. Thus the NPOs must demonstrate its stewardship of donated funds money given for a specific purpose must be used for that purpose. Financial management may be used in NPOs through;
Report this essayIntroductionTo achieve the above goals, an NPO must have an integrated business planning process which is efficient as well as effective, a business-based model that provides guidance and management, and an efficient operational model involving the full range of resources, including resource budgets, in order to achieve those goals. A financial planner or financial information system used by an NPO for financial management must have an integrated approach to managing its finances, including a written model where it determines how to calculate the financials the NPOs provide, and the following criteria need to be met before the NPO could use a resource to finance its planning activities. To do that, the NPO must have the tools to perform some of the above tasks. It is important for financial management to be a holistic framework that reflects the NPO’s overall interests in and needs for money management, the current state of financials, and the ability of the NPO to perform well under the conditions needed. The most effective budget management system utilized by a NPO would include a business model consistent with the following:• Account management to reflect a number of needs The NPO can design an overall cost method that is efficient and effective. In a more efficient business, a NPO has a plan to ensure that its plan for managing its money management needs is met. The plan includes all of the above activities. • Annual report containing the financial information required to conduct activities on behalf of the organization and a description of the financials paid out for the activity in its reports. • Annual reports that identify the amount of money that was paid out. • Annual reports that describe the financials that are used to finance the activities that will eventually be undertaken and to make a plan for the management of the money. • Monthly or quarterly reports on the overall financials paid out. • Annual reports that summarize a list of money management activities in order to guide the planning of the financials The purpose of this section is solely to explain how to perform the necessary activities. These will include the planning of the business plan, the use of some of the financial resources that are currently available for investment, the use of administrative tools that address conflicts among the relevant financial areas, as well as the application of financial management tools to specific areas in the organization.As an NPO, the goal of financial management has to be one that is able to carry out one or more of the following actions:• An operational planning process with the appropriate resources.• Organizational management of budget management systems from the outside.• Internal financial planning processes to determine that the NPO is sustainable and has the means to achieve its objectives.• Accounting and tax requirements for specific assets.• Organizational planning in coordination with the financial institutions that are required to manage the organization. The financial planning system that is used by organizations to manage their fund management has to be integrated with the financial planning process being conducted by NPOs that can perform those activities.As an NPO, the management of its funds should be consistent with that of a commercial enterprise. If it is implemented properly, a financial planner will be able to provide efficient financial managers operating on an an overall cost basis. The financial planner should have the tools and resources to undertake a program of effective financial management in order to achieve the above goals. This is not to say that there are no strategies to reduce the costs of financial planning as a necessary but effective means of being efficient financial managers with respect to financial management. In fact, as part of financial management, we consider this as essential to our ability to perform our function well as an essential tool to enable us to take care of
NOPs receive a wide selection of professional services from which the person is given the opportunity to review, review and develop their personal financial portfolios. NPOs who obtain the expertise to be considered for their NPO project are offered in a variety of professional organizations and from time to time there is a public opportunity for those to engage in commercial activities. However, if the individual does not provide financial services themselves, they remain in employment where the NPO is established and the person can continue to perform that service. Thus one can, for example, take advantage of an NPO’s financial services provided by an American company (Jones, 2014). If, however, the individual’s NPO is an investment or business opportunity, the individual may also be selected to provide financial services as an investment or non-profit opportunity. Many NOPs can be considered as well. Some non-profits may provide financial services to individuals in a non-profit setting. Others are often non-competent non-government agencies, which provides financial services to the organization. These individuals, however, are more often private persons, thus providing a financial service from which the individual may receive funds for the NPO. In addition, some NOPs can help to identify individuals who are likely to fall within charitable, government, non-profit or non-management affiliations. However, NOPs must have sufficient financial resources and in doing so provide a financial service so that the organization fulfills its commitments in accordance with their respective obligations, regardless of their affiliation.In addition, other organizations providing financial services for non-profits may provide financial services beyond their specific functions when they create a NPO. This includes providing financial services to those who are not involved in the project, as well as employees who have access to financial services such as employment, training, health care expenses, travel, and any other relevant non-profitable organization.For individuals who may be not in the workforce and therefore be unable to help with the project, an individual may be entitled to a limited amount of additional financial support (Lorensohn et al , 2010). Additional needs may include support for personal and social lives. The financial services provided to an individual may be provided not only by a non-profit, but within the project with whom the individual is working, whether or not the individual meets the organization’s stated organizational requirements and the needs of the project. Individuals may be able to access financial aid through an organization if they use the financial assistance such as a financial adviser or qualified social worker program as the primary source of assistance requested in such an investigation.Financial aid for individuals has not been developed with this in mind. However, individuals may be able to use such funds directly for legal, technical, and administrative costs (e.g., for administrative or legal compliance). Individuals should be aware that such additional financial support can potentially cost a substantial portion of the individual’s income, particularly in an area where an employee’s financial income often does not include income tax.The National Society of Professional Employees (NSEP) has concluded that financial support provided to the non-profit’s financial services should only be used in designated areas with a sufficient economic opportunity that a large number of employees, individuals, or groups can participate at its expense and the project can continue functioning smoothly.The NSEP recommends an alternative source of financial assistance. The financial assistance provided to an individual may also be provided to a non-profit organization directly, by an outside organization. If the non-profit can make contributions to a non-profit organization to fund programs or services, the individual may then be able to choose to provide
NOPs receive a wide selection of professional services from which the person is given the opportunity to review, review and develop their personal financial portfolios. NPOs who obtain the expertise to be considered for their NPO project are offered in a variety of professional organizations and from time to time there is a public opportunity for those to engage in commercial activities. However, if the individual does not provide financial services themselves, they remain in employment where the NPO is established and the person can continue to perform that service. Thus one can, for example, take advantage of an NPO’s financial services provided by an American company (Jones, 2014). If, however, the individual’s NPO is an investment or business opportunity, the individual may also be selected to provide financial services as an investment or non-profit opportunity. Many NOPs can be considered as well. Some non-profits may provide financial services to individuals in a non-profit setting. Others are often non-competent non-government agencies, which provides financial services to the organization. These individuals, however, are more often private persons, thus providing a financial service from which the individual may receive funds for the NPO. In addition, some NOPs can help to identify individuals who are likely to fall within charitable, government, non-profit or non-management affiliations. However, NOPs must have sufficient financial resources and in doing so provide a financial service so that the organization fulfills its commitments in accordance with their respective obligations, regardless of their affiliation.In addition, other organizations providing financial services for non-profits may provide financial services beyond their specific functions when they create a NPO. This includes providing financial services to those who are not involved in the project, as well as employees who have access to financial services such as employment, training, health care expenses, travel, and any other relevant non-profitable organization.For individuals who may be not in the workforce and therefore be unable to help with the project, an individual may be entitled to a limited amount of additional financial support (Lorensohn et al , 2010). Additional needs may include support for personal and social lives. The financial services provided to an individual may be provided not only by a non-profit, but within the project with whom the individual is working, whether or not the individual meets the organization’s stated organizational requirements and the needs of the project. Individuals may be able to access financial aid through an organization if they use the financial assistance such as a financial adviser or qualified social worker program as the primary source of assistance requested in such an investigation.Financial aid for individuals has not been developed with this in mind. However, individuals may be able to use such funds directly for legal, technical, and administrative costs (e.g., for administrative or legal compliance). Individuals should be aware that such additional financial support can potentially cost a substantial portion of the individual’s income, particularly in an area where an employee’s financial income often does not include income tax.The National Society of Professional Employees (NSEP) has concluded that financial support provided to the non-profit’s financial services should only be used in designated areas with a sufficient economic opportunity that a large number of employees, individuals, or groups can participate at its expense and the project can continue functioning smoothly.The NSEP recommends an alternative source of financial assistance. The financial assistance provided to an individual may also be provided to a non-profit organization directly, by an outside organization. If the non-profit can make contributions to a non-profit organization to fund programs or services, the individual may then be able to choose to provide
NOPs receive a wide selection of professional services from which the person is given the opportunity to review, review and develop their personal financial portfolios. NPOs who obtain the expertise to be considered for their NPO project are offered in a variety of professional organizations and from time to time there is a public opportunity for those to engage in commercial activities. However, if the individual does not provide financial services themselves, they remain in employment where the NPO is established and the person can continue to perform that service. Thus one can, for example, take advantage of an NPO’s financial services provided by an American company (Jones, 2014). If, however, the individual’s NPO is an investment or business opportunity, the individual may also be selected to provide financial services as an investment or non-profit opportunity. Many NOPs can be considered as well. Some non-profits may provide financial services to individuals in a non-profit setting. Others are often non-competent non-government agencies, which provides financial services to the organization. These individuals, however, are more often private persons, thus providing a financial service from which the individual may receive funds for the NPO. In addition, some NOPs can help to identify individuals who are likely to fall within charitable, government, non-profit or non-management affiliations. However, NOPs must have sufficient financial resources and in doing so provide a financial service so that the organization fulfills its commitments in accordance with their respective obligations, regardless of their affiliation.In addition, other organizations providing financial services for non-profits may provide financial services beyond their specific functions when they create a NPO. This includes providing financial services to those who are not involved in the project, as well as employees who have access to financial services such as employment, training, health care expenses, travel, and any other relevant non-profitable organization.For individuals who may be not in the workforce and therefore be unable to help with the project, an individual may be entitled to a limited amount of additional financial support (Lorensohn et al , 2010). Additional needs may include support for personal and social lives. The financial services provided to an individual may be provided not only by a non-profit, but within the project with whom the individual is working, whether or not the individual meets the organization’s stated organizational requirements and the needs of the project. Individuals may be able to access financial aid through an organization if they use the financial assistance such as a financial adviser or qualified social worker program as the primary source of assistance requested in such an investigation.Financial aid for individuals has not been developed with this in mind. However, individuals may be able to use such funds directly for legal, technical, and administrative costs (e.g., for administrative or legal compliance). Individuals should be aware that such additional financial support can potentially cost a substantial portion of the individual’s income, particularly in an area where an employee’s financial income often does not include income tax.The National Society of Professional Employees (NSEP) has concluded that financial support provided to the non-profit’s financial services should only be used in designated areas with a sufficient economic opportunity that a large number of employees, individuals, or groups can participate at its expense and the project can continue functioning smoothly.The NSEP recommends an alternative source of financial assistance. The financial assistance provided to an individual may also be provided to a non-profit organization directly, by an outside organization. If the non-profit can make contributions to a non-profit organization to fund programs or services, the individual may then be able to choose to provide
NOPs receive a wide selection of professional services from which the person is given the opportunity to review, review and develop their personal financial portfolios. NPOs who obtain the expertise to be considered for their NPO project are offered in a variety of professional organizations and from time to time there is a public opportunity for those to engage in commercial activities. However, if the individual does not provide financial services themselves, they remain in employment where the NPO is established and the person can continue to perform that service. Thus one can, for example, take advantage of an NPO’s financial services provided by an American company (Jones, 2014). If, however, the individual’s NPO is an investment or business opportunity, the individual may also be selected to provide financial services as an investment or non-profit opportunity. Many NOPs can be considered as well. Some non-profits may provide financial services to individuals in a non-profit setting. Others are often non-competent non-government agencies, which provides financial services to the organization. These individuals, however, are more often private persons, thus providing a financial service from which the individual may receive funds for the NPO. In addition, some NOPs can help to identify individuals who are likely to fall within charitable, government, non-profit or non-management affiliations. However, NOPs must have sufficient financial resources and in doing so provide a financial service so that the organization fulfills its commitments in accordance with their respective obligations, regardless of their affiliation.In addition, other organizations providing financial services for non-profits may provide financial services beyond their specific functions when they create a NPO. This includes providing financial services to those who are not involved in the project, as well as employees who have access to financial services such as employment, training, health care expenses, travel, and any other relevant non-profitable organization.For individuals who may be not in the workforce and therefore be unable to help with the project, an individual may be entitled to a limited amount of additional financial support (Lorensohn et al , 2010). Additional needs may include support for personal and social lives. The financial services provided to an individual may be provided not only by a non-profit, but within the project with whom the individual is working, whether or not the individual meets the organization’s stated organizational requirements and the needs of the project. Individuals may be able to access financial aid through an organization if they use the financial assistance such as a financial adviser or qualified social worker program as the primary source of assistance requested in such an investigation.Financial aid for individuals has not been developed with this in mind. However, individuals may be able to use such funds directly for legal, technical, and administrative costs (e.g., for administrative or legal compliance). Individuals should be aware that such additional financial support can potentially cost a substantial portion of the individual’s income, particularly in an area where an employee’s financial income often does not include income tax.The National Society of Professional Employees (NSEP) has concluded that financial support provided to the non-profit’s financial services should only be used in designated areas with a sufficient economic opportunity that a large number of employees, individuals, or groups can participate at its expense and the project can continue functioning smoothly.The NSEP recommends an alternative source of financial assistance. The financial assistance provided to an individual may also be provided to a non-profit organization directly, by an outside organization. If the non-profit can make contributions to a non-profit organization to fund programs or services, the individual may then be able to choose to provide
BudgetsBudgets are the organizations working plan for an economic period. They portray, in fiscal terms, the management and staffs decisions regarding how the firm will accomplish its listed purpose (Michalski G. &., 2011). The budget points a direction for allocating resources and maximizing their use. Ideally it also identifies any financial problems that could arise in the coming year. Procedural follow-up and categorization of project expenditures promotes the ability of management to report on service efforts and accomplishments (James, 2013).
The scope and size of an NPOs projects and asset base dictate the complexity of its budgets. In its most cases, a budget is a collection of management plans and objectives that covers all phases of operations for a period (Zadek, 2013). If a goal or objective of an organization is to build a working capital then it may want to anticipate a budget discrepancy of income over the expenses.
The budget, once accepted, should be used by the workers as a management tool to measure operational performance. The accountability of management and the staff is an aspect of budgeting, and should be a responsibility for those who are capable of realizing the goals.
Asset ManagementAn NPOs or assets are correctly managed from the going concern perspective, which assumes no limitation on the firms future existence (Michalski G. &., 2011). Management should ensure that the firm has adequate liquid assets which are available in financing the current business operations. The goal of maintaining the optimum balance of the available business assets and invested in extra assets. After the budget is made, the NPOs must try to focus on funding current projects by making use of current or liquid funds, and by maximizing available and obtainable resources to promote return on the resources (Zadek, 2013). To maximize resources involves the analysis of the costs and benefits of various sources of NPOs income.
Cash flow planningCash