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Nonprofit Operating Reserves: How Much Do You Need?  

The Charity CFO

No matter what corner of the nonprofit world you find yourself in, every organization has one thing in common – the need for nonprofit operating reserves. While it may sound complex, it’s a vital part of the financial picture for nonprofit leaders to consider.

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5 Warning Signs of Nonprofit Cash Flow Issues

The Charity CFO

Cash flow isn’t just an issue for small nonprofits that depend on donations to meet payroll each month. A lack of cash on hand impacts nonprofit organizations of all sizes. A few years ago, we were working with a fully-funded nonprofit. . After all, their financial reports showed they had much more revenue than expenses.

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Top 5 Nonprofit Financial Red Flags According to a CPA

The Charity CFO

As a CPA working exclusively with nonprofits and a former nonprofit auditor, I’ve looked at thousands of nonprofit financial statements over the past 10 years. Looking at that many balance sheets, you start to identify trends. Want to know if your nonprofit is headed for trouble? Risk of defaulting on loans .

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Nonprofit Communications: Navigating Donor Conversations

The Charity CFO

Nonprofit communications can be complicated, and sometimes awkward. It’s an avoidable fact of charity life that organizations are often in need of money – and donors are the primary source. While some organizations have significant endowments and reserves, many are operating without much sustained and reliable revenue.

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How to Create a Nonprofit Operating Budget

The Charity CFO

Whether you’re a new organization or an established one working to get its finances under better control, there are few more important things to get right than your nonprofit operating budget. It serves as the backbone of your nonprofit’s spending, fundraising, and much more.

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Statement of Activities: Reading a Nonprofit Income Statement

The Charity CFO

The Statement of Activities is the Income Statement of a nonprofit organization. You may also know it as a profit and loss statement or income and expense report. As a nonprofit, you call the difference between revenue and expenses the change in net assets. . Revenue: How much money did you receive ? .

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Should Your Nonprofit Have Debt?

The Charity CFO

If you’re like most nonprofit leaders, you probably have questions — and possibly mixed feelings — about nonprofit debt. That’s because you’ve also probably received mixed messages about nonprofits and debt. Nonprofits aren’t often encouraged to take on debt.