NONPROFITS AS FINANCIAL ENTITIES

Nonprofit Financial Management/ Fiscal

Management & Budgeting

•WHAT MAKES NONPROFITS DIFFERENT FROM FOR-PROFIT BUSINESSES?•WHAT ARE FINANCIAL ISSUES CURRENTLY FACING NONPROFITS?•HOW SHOULD THESE BE ADDRESSED?

Questions

For-ProfitFor-Profit Non-ProfitNon-Profit

Use of funds = distribution of profits

RevenueProfits – distributed,

may be reinvestedSuccess is monetary

Use of funds = no distribution of profits

Revenues – donations, grants, contracts, third party revenue

Profits – reinvested, not distributed

Success is social good

Organizational Characteristics

Giving in US Economy

2007 - $306.4 billion

2006 - $295 billion

Nonprofits in the economy

As of the second quarter of 2004:

Employment in charities = 10.5% US economy (14.1 million jobs)

Wage total = $321.6 billion

FOR NEXT WEEK:•READINGS•PRINT OUT GUIDE FOR REFERENCE•NAMEPLATES•ARTICLE REVIEW AND TOPIC PAPERS

Questions?