Quotes: 
What others are saying about Financial Leadership...

“Clear, accessible, painless—even inspiring! In my thirteen years as an executive director, I’ve never come across a resource that helps me confront and slay my finance demons as efficiently as Financial Leadership for Nonprofit Executives.”
—John Manzon-Santos, Executive Director, Asian & Pacific Islander Wellness Center

“Executive Directors can now step out from behind our ‘financial people’ and we, ourselves, can use finance as a precise tool in the fueling of social change—in our daily task of making the world a better place. Wow!”
—Roni Posner, Executive Director, Alliance for Nonprofit Management

“I wish I had this five years ago—though it’s also ‘perfect timing’ right now!”
—Barry Zack, Executive Director, Centerforce

“I need this book for teaching! I’ve had trouble finding a solid text that gives a good overview of how the system should work. This book simplifies financial processes into an easy-to-understand graphical mode.”
—Gloria Nedved, CEO, Ripple Creek Business Solutions

“An invaluable hands-on resource! In an era of more scrutiny, more accountability, and more demands for services with inadequate funds, this book will be a day-to-day resource for staff and board. Read it, then keep it close at hand.”
—Peter Brinckerhoff, President, Corporate Alternatives, Inc. and author, Nonprofit Stewardship, and Financial Empowerment


Table Of Contents: 
Introduction: How to Use This Book
CompassPoint’s Finance Philosophy
Who This Book Is For
How to Use This Book

1. Defining Financial Leadership
Mission or Money?
Financial Leadership
Five Leadership Principles
     1. Move beyond mission-versus-money thinking
     2. Cultivate financial leadership on both staff and board
     3. View the nonprofit business as an interdependent set of programs and activities
     4. Recognize the relationship between strong infrastructure and strong programs
     5. Set a tone of financial accountability and transparency
Evaluate Your Financial Leadership
Summary

2. Getting Financial Data You Can Trust
Staffing
Accounting Practices
     1. Treatment of restricted contributions
     2. Functional classification of expenses
     3. Employee time tracking
     4. Allocation of common costs
     5. Accrual basis accounting
     6. Capitalization and depreciation
Accounting Systems
Evaluate Your Staffing, Practices, and Systems
Summary

3. Assessing Your Organization’s Financial Health
The Financial Leader’s Key Assessment Questions
     1. What are our immediate financial strengths and vulnerabilities?
     2. What are our long-term financial strengths and vulnerabilities?
     3. Do our constituents perceive us as efficient and competitive?
Evaluate Your Organization’s Financial Health
Summary

4. Financial Planning
Guiding Principles of Effective Budgeting
Building the Annual Budget
     1. Define the planning context and goals
     2. Estimating costs
     3. Forecasting income
     4. Striking the balance
     5. Approving the Plan
Evaluate Your Financial Planning
Summary

5. Communicating Progress
Match the Message to the Audience
Program managers
Development director
Management team and board finance committee
Full staff and board
Funders
Constituents
IRS and regulators
Evaluate Your Communication of Financial Progress
Summary

Conclusion
Appendix A: Key Terms
Appendix B: Red/Yellow/Green Evaluation Forms
Appendix C: Resources


Figures
Figure 1. Financial Leadership Model
Figure 2. Financial Leadership Model
Figure 3. Financial Leadership Self-Evaluation
Figure 4. Finance Functions, Specific Tasks, and Qualifications
Figure 5. Statement of Activities (March 31, 2005)
Figure 6. Statement of Financial Position (March 31, 2005)
Figure 7. Functional Classifications of Expenses
Figure 8. Statement of Functional Income and Expenses (March 31, 2005)
Figure 9. Depreciation Schedule (March 31, 2005)
Figure 10. Accurate Financial Data Assessment
Figure 11. Statement of Financial Position (March 31, 2005)
Figure 12. Budgeted Statement of Activity – Unrestricted (March 31, 2005)
Figure 13. Statement of Functional Income and Expenses – Summarized (March 31, 2005)
Figure 14. Activity by Funding Sources (March 31, 2005)
Figure 15. Dual Bottom-Line Matrix
Figure 16. DV’s Dual Bottom-Line Matrix
Figure 17. Income Trend Analysis (March 31, 2005)
Figure 18. DV Restricted Funds Detail (March 31, 2005)
Figure 19. Financial Health Assessment
Figure 20. Budgeting Process
Figure 21. Budget Calendar
Figure 22. 2005–06 Budget: Goals and Objectives (April 15, 2005)
Figure 23. 2005–06 Budget: Staffing Plan – FTE (April 22, 2005)
Figure 24. 2005–06 Budget: Staffing Plan – Salaries (April 22, 2005)
Figure 25. 2005–06 Budget: Shelter Program Direct Costs (April 29, 2005)