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1 Are you robbing Peter to payPaul?. Ready to Serve! Ready to Impact! Mission To save lives To be a leading voice in the fight To Increase local and national.

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Presentation on theme: "1 Are you robbing Peter to payPaul?. Ready to Serve! Ready to Impact! Mission To save lives To be a leading voice in the fight To Increase local and national."— Presentation transcript:

1 1 Are you robbing Peter to payPaul?

2 Ready to Serve! Ready to Impact! Mission To save lives To be a leading voice in the fight To Increase local and national attention to the devastating IMPACT that breast cancer has in the African American community 2

3 3 Ready to Serve! Ready to Impact!

4 4 3 Fundamental Questions Who is Peter? Who is Paul? Why is one robbing from the other? If we don’t ……………

5 5 If we don’t figure out how to get out of this cycle..…… If we don’t answer the fundamental questions……… If we don’t provide solutions and systems to provide relevant, accurate accounting…….. IF WE DON’T……..

6 6 If we don’t, then our IMPACT is Diminished - Not compliant - Donors give to organizations that steward well - Continued Cycle of Chaos -Governmental Grants out of the question. They require reporting -Lose Credibility -Conversation becomes less about the mission and more about the internal chaos

7 7 Impact IS our Goal…so let’s Get there!

8 Revenue & SupportTotal Contributions/Donations$686,598 Conference & Programs$337,677 Conference$139,443 Government Grants$100,000 Other$8,683 Interest Income$1,455 TOTAL REVENUE1,273,856 EXPENSESTotal Program Services$1,023,320 Management and General$137,936 Fundraising$110,369 TOTAL EXPENSES$1,271,625 NET+$2, Who is Peter? Who is Paul? PETER PAUL Who is Peter? Who is Paul? Why is one robbing from the other?

9 How is one robbing the other? Scenario #1 -Donor gives monetary donation specifically to be used for Young Sisters Initiative. -Rent is due. Rent is a Management & General item. -Payment for rent is pulled from the YSI bucket of funds. 9 Scenario #2 -Dollars were allocated to your local chapter for BCAP. -You needed to buy food items for a chapter meeting. -National is needing receipts for dollars allocated to gain matching funds for BCAP. - Scenario #3 -National has asked for records of donations on the chapter level along with expenditures for proper recording. -Your chapter forgot to complete documents. -Your chapter lost the sheet of paper where expenses were being tracked.

10 Best Practices 10  Budget Annually A.Your team should be getting together annually to put #’s to your vision & programs. Corporate entities I deal with start this conversation and process in October. B. Once the budget is prepared and approved, don't put it away in a dark corner. For the budget to be useful and effective, everyone should take it seriously. C. The budget should be compared with the actual experience on a regular basis (i.e. monthly or quarterly) to allow board members and executive officers to measure whether the organization's goals, set by the budget, are being met.

11 Next Stop…Pearland ! 11  Establish Processes & Systems to account for inflow of Restricted + Non-Restricted Dollars along with outflow of Peter + Paul expenses A.How are you accounting for donations and expenditures on the chapter level? Who is responsible for that? B.What documents are necessary to keep National informed on activities on the chapter level? Are you timely turning in requested documents? C.Are you meeting deadlines set by National for reporting (i.e. grant matching)? D.How do you connect deposits to donors? How do you identify restricted vs. non-restricted general dollars? E.What is the process by which bills/expenses are paid? Is there a approval process? Best Practices

12 12  Record keeping for Quarterly/Yearly Reporting A. A public charity should set up a record keeping system using an accounting method that is appropriate for proper monitoring and reporting of its financial activities for the tax year. If a public charity has more than one program, it should ensure that the records appropriately identify the income and expense items that are attributable to each program. B. A nonprofit record keeping system should generally include a summary of transactions. This summary is ordinarily written in the public charity’s books (for example, accounting journals and ledgers). The books must show gross receipts, purchases, expenses (other than purchases), employment taxes, and assets. For most small organizations, the checkbook might be the main source for entries in the books while larger organizations would need more sophisticated ledgers and records. A public charity must keep documentation that supports entries in the books. Supporting Documents Organization transactions such as contributions, purchases, sales, and payroll will generate supporting documents. These documents — grant applications and awards, sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks — contain information to be recorded in accounting records. It is important to keep these documents because they support the entries in books and the entries on tax and information returns. Public charities should keep supporting documents organized by year and type of receipt or expense. Also, keep records in a safe place. Best Practices

13 Next Stop…Pearland! EXAMPLE OF A SIMPLE PROCESS: Deposits For every deposit made, a member of your team should makes copy of check(s). Attach check to deposit slip noting whether funds are restricted or not. (Restrictions, if any, are imposed by donor) Expenses All expenditures should have a receipt. Attach receipt to either a expense report or check request form. 13 Best Practices

14 14 Our WHY -Minimizes risk to the board of directors and the organization -Facilitates timely and accurate financial statements and thereby effective decision making -Ensures accountability to members and the public -Helps the organization operate effectively and efficiently -Helps organization meet governmental obligations -Donors looking to give can do so with Confidence


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