Managing a nonprofit organization (NPO) effectively is a multifaceted challenge, particularly when it comes to financial matters. Often, NPO managers may lack financial expertise or focus intensely on welfare objectives and fundraising, at the expense of operational efficiency and cost controls. This accounting for nonprofits course is designed to bridge this gap, providing essential financial guidance tailored specifically for NPOs. Through this nonprofit accounting course, participants will learn to navigate critical financial questions that are pivotal for the health and success of any nonprofit organization. These include understanding profit and loss dynamics, assessing reserves and liquidity, evaluating internal controls, operating efficiency, budget adherence, program validity, competitive standing, and rational prioritizing of programs and activities. By addressing these key areas, the nonprofit CPE course empowers NPO managers and financial officers to make informed decisions, optimize operations, and ensure the financial sustainability of their organizations.
Learning Objectives
After studying this course, you will be able to:
Chapter 1
Recognize financing options available to NPOs;
Identify different cost types and classification for NPOs; and
Recognize costs that are relevant to nonprofit decision making.
Chapter 2
Recognize the accounting method used by NPOs;
Identify the processes of budget recording and accountability;
Distinguish between a contribution and an exchange transaction; and
Distinguishing between conditional and unconditional contributions.
Chapter 3
Identify the concepts answered by Cost-Volume-Revenue (CVR) analysis;
Differentiate among the methods to analyze financial statements; and
Recognize components of the break-even analysis.
Chapter 4
Recognize different examples of trend analysis; and
Identify objectives in analyzing the statement of activities and different performance measures.
Chapter 5
Identify different examples of qualitative and quantitative forecasting methodology.
Chapter 6
Identify the various types of budgets; and
Recognize the characteristics of different budgets and how to measure their effectiveness.
Chapter 7
Recognize the elements and characteristics of Zero Base Budgeting (ZBB); and
Identify the characteristics and the time considerations of program budgeting process.
Chapter 8
Identify how cost behavior and varianceanalysis can assist with the budgeting process; and
Calculate different costs and variances for the budgeting process.
Chapter 9
Recognize use of mission centersand service centers for NPOs;
Identify the role of the contribution approach to cost allocation for measuring performance of responsibility centers; and
Recognize how cost allocations can affect performance metrics for managerial control.
Chapter 10
Calculate costs associated with different sources financing;
Estimate future NPO budgets based on past donations;
Differentiate between fixed, variable and semi-variable costs; and
Calculate the cost of long-term debt financing.
Chapter 11
Identify examples of the various cash models available;
Recognize costs that impact working capital;
Differentiate between investment objectives; and
Identify different financial instruments available for investing surplus funds.
Chapter 12
Recognize the purpose for allocating service center costs to mission centers;
Differentiate among cost allocation techniques using the direct method, step-down (two-stage) method, and reciprocal method; and
Identify the benefits of activity-based costing (ABC) and some factors that can be used in ABC.
Chapter 13
Compute the present values and pay-back periods in a make or buy decision; and
Identify different types of investment instruments and financial models.
Major Topics
Fundamentals for NonProfits
Accounting Concepts and Principles
Cost-Volume-Revenue Analysis
Financial Statement Analysis and Perfomance Measurement
Forecasting Methods
Budgeting Process
Efficiency and Cost Control
Cost PRedication and Performance Evaluation
Management Control of Revenue and Expense
Financing Techniques
Working Capital Technique
Cost Allocation
Decision-Making Models
