Woman accountant being taught about good and bad overhead

Overhead expenses are unavoidable when running any kind of organization, including those in the nonprofit sector. Overhead line items tend to be highly scrutinized in the nonprofit world, where charities and other organizations are judged by how they allocate their funds to anything outside of the scope of mission-driven programmatic spending.  In this article we…

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There is nothing like the excitement of hearing that you are being awarded a generous grant.  As a mission-driven organization, your goal is to provide a valuable service to your community. Grant money can feel like the essential “blood” that courses through the work you do and brings “oxygen” to a variety of programs and…

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Indirect cost rates fluctuate each year based on the results of your operations.  If the indirect rate decreases, it could be a sign that your organization is heading to a major cash flow problem to resolve.  Stay on top of your current year’s indirect cost rate to plan and prepare for any changes.  It is…

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But these situations are usually clear to see, easy to prepare for, and usually short-lived. When an organization has chronic cash flow problems, the root may be the lack of proper planning and monitoring.

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Action plan

So your books are balanced.  In fact, you have supported the major balances in your balance sheet and have traced the activity in your statement of revenues and expenses.  The reports are ready to be published.  Now what?  What is the purpose of these historical reports? In my first article, I presented my opinion on…

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