Financial Management for Nonprofits

Posted on 24 Jul 2018 Last updated on 10 Jul 2019

The effective management and control of finances is one of the most crucial areas for nonprofit organisations.

It is vital that community and voluntary organisations, charities and social enterprises adopt the correct and most efficient financial management systems for their purposes. This will help them ensure that they deliver on their mission, honour their donors’ wishes and remain compliant with regulations.

When financial management systems fail, it can have catastrophic consequences for the organisation’s beneficiaries, volunteers, staff, supporters and reputation. On the other hand, organisations that take due care of their financial management systems will benefit in countless ways, in terms of their impact, confidence to act and attract further support for their cause. 

Elsewhere in this section we look at a number of key financial areas for nonprofits:

1. charity Accounts: Using the Statement of Recommended Practice (SORP)

2. financial Controls

3. guidelines on a Reserves Policy

4. Vat Compensation Scheme

5. Beneficial Ownership