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TRANSCRIPT
WELCOME!!4th Annual MAWOCN
Conference
Kenosha
Davenport
Executive Director
of the Family
Refuge Center
Diana Mancera
Director of
Membership &
Programs at Jane
Doe Inc.
Who’s LEAP?
LEAP is a strategic project developed for the purpose to enhance the professional skills and overcome the barriers experienced by WOC in accessing and maintaining executive and/or leadership positions within the anti-violence
movement.
The goals of the LEAP Project are:• Build upon and enhance the professional capacity of women of color
(WOC) executive directors, directors and senior managers in anti-violence against women programs.
• Create a community of support and professional network for emerging WOC executives and management leaders, aimed at reducing isolation, maximizing skills development, information-sharing, and communication.
• Optimize the success and effectiveness of emerging WOC leaders by providing opportunities to impact spheres of influence and communities through “Pay it Forward” activities.
Show Me the Money
Understanding and Managing Budgets
Learning Objectives
• Relationship between money and mission…not static
• Keys to increase revenue
• Learn a few necessary fundamental definitions
• Learn to read and analyze financial statements
• Explore executive/leadership decisions/positions
5 Keys to Increasing Revenue Build the
Capacity of your team (board, staff, volunteers)
1
Dedicate the TIME
2
Identify and make CONNECTIONS
3
Increase your Presence
4
THINK outside the box
5
Build Capacity• Educate and train your team
Team: Board, Staff, Volunteers, Community Partners
Elevator speech
Current Needs and Projects
Skills: grant writing, public speaking, making the ask
Marketing
Dedicate the Time
Identify and make Connections
Private Foundations
For-Profit Corporations
Non-profit Associations
Community Foundations
National Organizations
Increase your Presence
• Press Releases
• Community Meetings
• Social Media
• Website
• Share your organization with others
Think Outside the Box
How do you feel when we say let’s talk about Financial Statements or Accounting, or Budgeting?
Step 1: Sheet of paper
Step 2: Fold it in half
TOP HALF:
INCOME
BOTTOM HALF
EXPENSES
DEBT – WHAT DO YOU OWE
A
c
t
i
v
i
t
y
#
1
Activity #1Step 3: SUBTRACT
REMAINING AMOUNT = NET GAIN/LOSS
• If you get a positive number, this means you make more money than you spend.
• If you break even, this means you have exactly enough money, but no margin. You may want to adjust your budget to give yourself some margin in the form of a “discretionary” category in the event that things come up that you didn’t plan for.
• If you get a negative number, this means you’re spending more money than you take home.
“Well, it is not my job”
“The work is too
important not to be
funded”
“Budgeting is just
accounting by another name”
“Budget is just a
numbers game!”
“Senior management doesn’t
care what we say or if I could
save or process around budget”
Addressing the 5 Misconceptions
1. “It’s Not My Job!”
2. “The Work Is Too Important Not To Be Funded”
3. “Budgeting Is Just A Numbers Game”
4. “Budgeting Is Just Accounting By Another Name”
5. “Senior Management Doesn’t Care About My Opinion/Knowledge of this or what I have to Say”
The Basics of Budget in An Organization• Assets = Liabilities + equity[fund balance]
• Assets: Current assets are those that will be used within one year. Fixed assets (non current) are more long-term and will likely provide benefit for more than one year.
• Liabilities: Current liabilities are those, debts payable within a year. Long-term liabilities are typically payable over a period of time greater than one year.
• Retained earnings/Fund balance/Net worth: The value of the company or agency at a point in time
• General ledger: A complete record of all financial transactions over the life of a company.
• Chart of Accounts: A listing of the accounts available in the accounting system in which to record entries.
Continuing…..• Balance sheet: A financial report that summarizes a company's
assets (what it owns), liabilities (what it owes) and owner’s equity at a given time. Point in time vs. period in time – it’s a snapshot
• Statement of Financial Position – official accounting term for the balance sheet in nonprofit financial statements
• Income: earnings – how the agency makes $
• Expense: The every day operational costs + any programmatic costs. Give some examples
• Net Income: what is the “bottom line” Calculated by subtracting totally expenses from total revenues.
• P & L Statement or Statement of Financial Activity – A financial statement used to summarize a performance and financial position by reviewing revenues, costs and expenses during a specific period of time; such a quarterly or annually.
What do these mean?• Accrual Accounting - a method in which income is recorded
when it is earned and expenses are recorded when they are incurred, all independent of cash flow
• Cash-Basis Accounting - a method in which income and expenses are recorded when they are paid
• The main difference between accrual and cash basis accounting is timing.
Let’s Look At Some Financial Statments
POP QUIZ?
Accounting term that
summarizes the
organization’s assets and
liabilities?
REMEMBER!
Balance Sheet = A financial report that summarizes a company's assets (what it owns), liabilities (what it owes) and owner’s equity at a given time.
Statement of Financial Position – official accounting term for the balance sheet in nonprofit financial statements
Cash on
hand
$ you haven’t received
Furniture + accumulated
depreciation.
Total Net
worth
Bottom line
Total Current
Budget
What’s left
What percentage
of your
organization is
grant funded?
What do we
currently
owe our
employees?
Fun: Part DeuxYou are one week into your Executive Director / CEO position.
• Scenario 1: Staff have not received pay increase in 5 years.
• Scenario 2: The BOD wants you to double your office space.
Resources for Nonprofit Financial Management Planning
• Strengthening the budget development processA Five-Step Guide to Budget Development
• Connecting organizational goals with financial realitiesFunding Opportunity Assessment Tool (online interactive) *
• Calculating the true cost of programsProgram-Based Budget Builder (Excel) *
Monitoring
• Understanding and interpreting financial informationHow to Talk About Finances So Non-Financial Folks Will Listen (article)
• Managing restricted fundsTemporarily restricted net assets (TRNA) schedule