Archive for the ‘Budget’ Category

With a brief shutdown, some of these functions might elicit ho-hum responses, but other shutdown dynamics might hit nonprofits where they are vulnerable:

In the 1995 and 1996 shutdowns, payments to federal contractors affecting approximately 20 percent of the dollar volume of contracts were “affected adversely by the funding lapse” according to the CRS. Nonprofits know what that means. Grant awards and contract reimbursements will be delayed – on top of those already delayed, as NPQ has reported.

And the pain will spread to the states. Many state and local program staff are partially paid for by federal dollars. As those payments slow and stop, state governments will either have to temporarily replace federal dollars with their own resources, in short supply, or simply lay people off and shutter programs. As a result, federal grant and contract payment delays will add to delays for nonprofits at the state and local levels.

Provided by: The Nonprofit Quarterly, Rick Cohen

As a business owner, it is my responsibility, and serious duty, to leave my office, meet others, and lunch often with strangers. Networking is the only way I know to make friends and build resources.s

Weekly I’m off on a quest to meet with my networking group. I enjoy this time because we share business ideas, resources, referrals, and most importantly we are moving forward to building relationships. One other aspect included in networking, is being with individuals of similar profession/passion/interest. Definitely we all come together for the same reason, to build our resource pool, and to expose others to our businesses.

About a month ago, a nice lawyer reached out to me because he liked what he read on my website. He and I chatted, and instantly found ways to promote each other’s business. Over the course of time, we’ve been exchanging referrals and resources. He forwarded me an invitation to his exclusive nonprofit networking group, and I’m writing this post on the subway on my way to the first event. I am moments away from meeting not just one new business ally, but at least 20. I would say lunching with strangers definitely has its rewards.

So, do you have plans to lunch with a stranger anytime soon? Consider the possibility for the growth of your business.

Peachtree Premium Accounting for Non-Profits 2010 by Sage

Peachtree by Sage Premium Accounting for Nonprofits 2010 provides advanced accounting and analysis tools to help improve the operations of nonprofit organizations. Its multi-user option* helps improve productivity with screen-level security and a clear audit trail. A pre-configured chart of accounts and customizable financial statements make it easy to get started. Analysis tools include multiple-program reporting, encumbrance tracking, 145 customizable reports, and Crystal Reports® 2008*. Nonprofit-specific reports include Donor/Grantor Summary. Prior-period locking feature and audit trails help ensure the integrity of your financial records and deter fraud. Nonprofit features include fundraising mail/merge templates.

When I started my business over ten years ago, my husband (who is a Federal Government employee) nearly had a fit when he saw my budget for training and leadership conferences. “Why in the world would you need that much money?” He barked. Then I walked him through the training opportunities that his job had provided for him just that year, and he softened.

I believe that every business owner should set aside a generous training budget, and especially for startup business owners. The beginning is usually when you can justify adding in a significant amount of training as you’ll have fewer clients. So, now’s the time to invest in the programs you want to gain a better understanding of such: taxes/accounting for non-accountants, program specific training, business skills training, and grammar refresher. I highly recommend that every year, or two, business owners take a grammar refresher course as things change, and you need to stay on top of the changes.

As a business owner it is your responsibility to manage your continued growth. It makes you more valuable to the community you are supporting. The training and leadership conferences that I have participated in have helped me to stay relevant in my position; they have helped me to meet new people to add to my resource database; and they have added to my knowledge base and repertoire. Also, you should mix it up by taking business and personal improvement classes. Some examples of personal improvement classes could include: learning to cook quick healthy meals, time management housekeeping techniques, personal budgeting…

What other personal improvement classes come to mind for you? Post here.

I think when we hear free coming from a business we think there is a catch to it, and while there can be, it isn’t always the case.

On Wednesdays from 10:30am to 11:30am, I have blocks of 15-minute time slots set aside for people to use to ask questions about the start-up process for creating a nonprofit. While this event has had some attention, I am hoping that every Wednesday for that hour I’ll be completely busy answering questions. I truly want to help you get started. There’s a lot to consider when starting a nonprofit, and it is all doable. I’m here to encourage you, and if you decide you want to use my services to start your nonprofit that’s absolutely fine too!

So, I thought I would share a question that I answered from one of the calls I’ve had so far. Perhaps this will give you an idea of what to ask as you consider your nonprofit vision.

What percentage of overhead should be included in your budget?
As I stated in an earlier post Budget-Fudge It, your budget needs to be thought through careful and absolutely realistic. If it will cost you more in overhead than the program itself, you need to show that clearly in your budget and you program documentation. This is where an accountant would be instrumental in helping you filter through the finances of this organization creation.

Take the time to Interview several accountants, if you don’t have one. Make sure to let them know you are creating a nonprofit. Find out if they have worked with a nonprofit before, and just how familiar are they with the 990 form. (This a special form that you’ll have to fill out for taxes as a nonprofit.)

If you need recommendations for accountants, here are a few places to try for referrals: 1) Local Chamber of Commerce, 2) Local Business Network International (BNI) group, 3) referral from family or friends, and 4) referral from other business owners.

Remember, if you have a question regarding your start-up nonprofit, please select a time during my free office hours on Wednesday from 10:30am to 11:30am, and get an answer!

 About two years ago, my husband and I realized that our spending had gotten completely out of control. We didn’t have a handle on our finances, and it was very stressful. At one point, we had close to $300 in insufficient funds fees all from not keeping an eye on our account. Today we have a budget, a very detailed one that we review every week.

The budget is a crucial component for all businesses. This is the one area where you really should sit down and take your time developing. You even need to me clear about whether or not you want to operate a cash based business, meaning only get what you can absolutely pay for without getting loans.

As for starting a nonprofit, budget creation is essential. (Revisit an old post.) You’ll want to be careful not to exaggerate the budget, but to stick to actual figures. The reason for this, nonprofit funders are looking carefully at your budget. For the most part, they want to know what will become of their investment. Also, you have to be ready to share itemized expense reports with your funders. Funders/contributors are very skeptical, as they should be, about
where their funding dollars are going. So, be clear, and detailed about your financial needs.

It is a great idea to revisit your overall budget quarterly, and a monthly check up to ensure that you are keeping an eye of your bottom line is essential for a healthy business.