If you want to control costs and improve delivery of your not-for-profit’s services, it’s important to calculate and regularly monitor four key ratios. They are: 1) percentage spent on program activities, 2) percentage spent on fundraising, 3) current ratio (representing your ability to pay your bills) and 4) reserve ratio (representing reserves available during temporary cash crunches). Looking at the right numbers is only the start. To ensure you’re achieving your objectives cost-effectively, make sure everyone in your organization is focused on outcomes directly related to your mission.
Cross-training employees can help protect your not-for-profit’s finances and operations. The process involves teaching staffers to do each other’s jobs so that critical functions...
If you haven’t revisited your not-for-profit’s bylaws recently, they may not be as effective as they could be. Your bylaws should cover your nonprofit’s...
Financial restatements were up in 2018. Though restatements have a negative stigma, the uptick may not necessarily signal an increase in mismanagement or a...