Not-for-Profit Accounting Fundamentals
Who wants to study accounting during the summer? New York University School of Continuing and Professional Studies offers a course entitled "Not-for-Profit Accounting Fundamentals." Nancy Kelly has been teaching the class which offers a certificate in Not-for-Profit Finance.
The class met last Wednesday for a special session. The six students, along with staff, spent the two hours learning how to read financial statements in order to determine the health of a not-for-profit organization.
Five Lenses for Assessing Financial Health
The class examined the five lenses with which to look through in order to assess a not-for-profit's financial health:
- Profitability - Examining whether the organization is generating positive operating results
- Revenue Dynamics - Analyzing trends and diversification in funding sources
- Expense Dynamics - Understanding spending patterns and cost management
- Composition of Balance Sheet - Reviewing assets, liabilities, and net assets
- Liquidity - Assessing the organization's ability to meet short-term obligations
The students come from varying professional backgrounds with some already working in the nonprofit sector and some working in accounting.
Nancy Kelly takes accounting, perceived to be a dry subject matter, and makes it interesting. She does this by allowing accounting and finance to tell the story of a not-for-profit organization.
Why Financial Literacy Matters for Nonprofits
Understanding financial statements is crucial for nonprofit leaders, board members, and staff. Strong financial literacy enables:
- Better strategic decision-making
- More effective resource allocation
- Improved communication with donors and stakeholders
- Early identification of financial challenges
- Enhanced long-term sustainability
KVR's Commitment to Nonprofit Education
At KVR, we believe in supporting financial education for nonprofit organizations. We regularly provide workshops and resources to help our nonprofit clients understand their financial statements and make informed decisions.
If you're interested in learning more about nonprofit financial fundamentals or need assistance interpreting your organization's financial statements, please contact our team for personalized guidance.