place yourself in the role of a new board member of an emerging not for profit o
ID: 2794627 • Letter: P
Question
place yourself in the role of a new board member of an emerging not for profit organization that is hoping to attract new donors. contributors large and small want to know how efficiently not profit organizations use their donations. unfortunately , your fellow board members see little value in financial reporting and analysis; they feel the organizations good work speaks for itself.prepare a fact sheet convincing the board of the need for effective financial reporting and offer arguments why it may help the organizations fund raising goals
Explanation / Answer
Not-for-Profit Organisations (NPOs) are also often referred to as “Development Organisations”, “Private Voluntary Organisations”, “Civil Society Organisations” “Non Governmental Organisations”, “Non-Profit Organisations”, “Charities” and other similar terms( Public Benefit Organizations).
Finacial reporting for any entity discloses the state of affairs of the entity for the period eneded ,and also discloses the true and fair view of operations during the current period.
Financial reporting in case of Non profit organization is nothing but Balance sheet for the year ended and Statement of Income and expense and cashflow statement..etc .Financial reporting need to be done in accordance with the applicable laws and regulations and reavant standards .
Finacial reporting is useful for managament and users fo financial statements ,in the present case users of financial statements are
Finacial reports is get audited then it is most useful for decision making for internal and external stakeholders for example
Even board members feel the organizations good work speaks for itself ,financial reporting and get audited are very important for non profit organization.
fact sheet convincing the board of the need for effective financial reporting
Arguments why it may help the organizations fund raising goals
When financail reporting is done and get audited then contributors place reliance on non profit organation for NPO carry out functions in accodance with the objectives and goals of the NPO and donations are used for approved activities.It is also describes how efficiently NPO use their donations
If NPO use their donations efficiently then new contributors also donates to NPO in such way NPO attract new donors.
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