NGO Boards Financial Continuity Strategies Essay

Tags: financial management strategic planning revenue business plans strategic management performance budget management

Open, View, and/or
Download this Document

Total Length: 642 words ( 2 double-spaced pages)

Total Sources: 3

Page 1 of 2

Financial continuity Strategies for NGO Boards

Non-governmental organizations are often caught up in financial woes that make it difficult for their operation despite having a strong mission program. Discussed are professional financial continuity strategies for NGO boards to control the financial performance of their organizations in a timely manner. Firstly, ensuring an effective operation of the board. Their functions are executed through complementary and supervisory operations, and legal obligations on their performance in the organizations structure (Finkler et al., 2016). The board’s primary role is to represent the interests of the stakeholders and those of the organization. Their functions include administration of the organization, financial oversight, and making decisions on policy.

Their governance responsibilities includes approval of annual budgets, preparation of business plans, policy formulation and implementation, strategic planning, and other administrative controls. Internal controls should be exercised not give room for fraudulent activities. Boards should ensure the organization abides to the contractual and legal conditions provided by donors. Performing and reporting on financial audits facilitate organizational accountability.

Fund accountancy

The approach in fund accounting is to keep records of resources that donors, governing boards, legal entities or granting agencies provide limited ways in which the funds are used. Every fund has inherent balancing of the liabilities, revenue, expense account, and assets.

Stuck Writing Your "NGO Boards Financial Continuity Strategies" Essay?

View All Our Example NGO Boards Financial Continuity Strategies Essay

Have A Custom Example Essay Written

Net assets and the fund balances are classified as unrestricted, permanently restricted or temporarily restricted in the financial position statement depending in the donor’s restrictions and the net assets base. Therefore, fund accounting is associated with segregation of the funds available towards the current projects and the financial resources that are dedicated to donor specified causes.

Fund accounting also makes the audit process easier since one can follow the trail of resources (Lekaj, 2011). Spending is restricted to the specified purpose Payables and receivables of fund groups are neither organizational liabilities nor organizational assets. Financial statements must clearly categorize the inter-funds accordingly to avoid reflecting their worth in the organization’s total liabilities and assets. Consequently, for of external financial reporting, the classification of net assets may have to be categorized into different classes.

Assets Management

Assets in nonprofit organizations are managed in a going perspective which implies there are no limitations to the organization’s existence in the future. Therefore, the management must ensure there are sufficient liquid financial resources for current operations. The objective of this approach is to make sure….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


References

Finkler, S. A., Smith, D. L., Calabrese, T. D., & Purtell, R. M. (2016). Financial management for public, health, and not-for-profit organizations. CQ Press.

Lekaj, D. (2011). Financial Management in Not-for-profit Organizations. Blackbaud.

Wilson-Grau, R. (2003). The risk approach to strategic management in development NGOs. Development in Practice, 13(5), 533-536.

sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"NGO Boards Financial Continuity Strategies" (2018, February 10) Retrieved May 14, 2025, from
https://www.aceyourpaper.com/essays/ngo-boards-financial-continuity-strategies-essay

Latest MLA Format (8th edition)

Copy Reference
"NGO Boards Financial Continuity Strategies" 10 February 2018. Web.14 May. 2025. <
https://www.aceyourpaper.com/essays/ngo-boards-financial-continuity-strategies-essay>

Latest Chicago Format (16th edition)

Copy Reference
"NGO Boards Financial Continuity Strategies", 10 February 2018, Accessed.14 May. 2025,
https://www.aceyourpaper.com/essays/ngo-boards-financial-continuity-strategies-essay
   

Open, View, and/or
Download this Document
order custom essay example