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News Update:
Analyzing Core Operations From A Financial Perspective
Many nonprofits during the past year have focused extensively on their core business operations as they sought ways to increase efficiencies and reduce costs. There are a number of key elements on which to focus during such a process. First, it is necessary to define “core business operations.” Core business operations are those recurring revenues and expenditures that relate to an organization's programs and activities. These core business operations exclude nonrecurring one-time revenues and expenses as well as revenues and expenses that may be generated occasionally but are not considered essential to the organization's mission. In analyzing core business operations, you should use a concept similar to “income/loss from operations” in the commercial sector. Core business operations exclude the investment spending rate that is reported “above the line,” as well as temporarily and permanently restricted net asset activity. Net assets released from restrictions (within unrestricted net asset activity) are included within core business operations. Cumulative effect adjustments, prior-period adjustments, extraordinary items and income tax provisions, if applicable, are typically not included within core business operations. For those nonprofits that present statements of activities using an operating/non-operating format, determining the surplus or deficit generated by core business operations is often easy to calculate. Click Here to Read More...
More News... What’s The CEO Job Worth To The Organization? There might be a hidden source of high value in your organization. This source offers a generous return on relatively little investment. It requires little oversight to deliver this value, just a sufficient amount of support. The source is an ordinary human being who at the moment might be sitting in a comfortable black chair that swivels and tilts as desired. A telephone is nearby, as is a packed calendar. The source is well known in the organization, and it has a common title. It might even be you. The value is your CEO Premium. The CEO Premium might sound like an abstraction, but it is one of the most measurable things about an organization's leadership. Think of it as the resource that would be missing were the CEO to abruptly not be in the position. This is the CEO Premium. Here is how the CEO Premium works. In any organization there are direct tasks to be done that are straightforward and often quite identifiable. Direct services need to be delivered, human resource decisions made, financial records maintained. These kinds of direct tasks are inevitably delegated to one person or group of persons in the organization. To make sure that the tasks get done properly there are a range of supervisory actions that need to be carried out. What direct tasks and supervisory actions both have in common is that there is often a “right” way of doing them. The bounds of successful action are understood and, more importantly, the scope of the responsibility is clear. Click Here to Read More...
The 11 Questions Every Donor Asks (Or Should)
No fundraiser has a crystal ball. Although it would be nice, the reality is that preparing for “the ask,” only goes so far. Everything from a fundraiser's job title to patience and timing all come into play when soliciting a gift of any size. During the Association of Fundraising Professionals' recent annual conference in Baltimore, Md., Harvey McKinnon, CFRE and president of Harvey McKinnon Associates in Ontario, Canada, gave fundraisers the burning questions donors have when being solicited, and just how to handle them. 1. Why Me? McKinnon said all donors want to understand why they are being pinpointed for giving, and should be made to feel they can inspire others by contributing. “Your job is to figure out how you can break into their circle of concern,” he said. “Show you care, make sure you have met. That personal meeting makes an enormous difference with people.” Click Here to Read More...
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