Understanding Nonprofit Financial Statements [Paperback]

Steven H. Berger (Author)

Product Details

• Paperback: 55 pages
• Publisher: Natl Center for Nonprofit Boards; 2nd edition (April 2003)
• Language: English
• ISBN-10: 1586860313
• ISBN-13: 978-1586860318
• Product Dimensions: 9.8 x 7.1 x 0.2 inches
• Shipping Weight: 5.6 ounces
• Average Customer Review: 5.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #496,364 in Books (See Top 100 in Books)

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6 of 6 people found the following review helpful:

5.0 out of 5 stars practical training for non-profit execs and board members, July 26, 2005

By 

David A. Baer (Indianapolis, IN USA) - See all my reviews
(VINE VOICE)   

This review is from: Understanding Nonprofit Financial Statements (Paperback)

BoardSource (formerly the National Center for Nonprofit Boards) has distinguished itself as the premier source for high-quality, practical materials designed to equip nonprofit board members and officers to fulfill their considerable and evolving responsibilities. Though pricey, its products represent high value. This book is no exception. For the board member or executive without business training, seven well-illustrated chapters serve as both a primer and a reference work that will be consulted often and profitably.

Chapters one ('The Board's Role in Comparison to the Executive Role', 1-2) and two ('Different Types of Nonprofit Organizations', 3-4) establish the conceptual fundamentals that will be fleshed out with frequent reference to IRS regulations and GAAP practices in the chapters that follow. 'Differentiating Between Accounting Functions and Finance Functions' (Chapter three, pp. 5-6) will gladden the hearts of staff accountants everywhere by defining the limits of their task, responsibility and (sometimes) competence.

The book's longest chapter ('Elements of Basic Audited Financial Statements', pp. 7-29) clarifies the difference between nonprofit and for-profit financial statements, a distinction that my organization's Vice President of Administration-and my tutor in such affairs-insists few non-profit executives understand. More importantly, it defines and illustrates each item on the statements of financial position (balance sheet), of activities, of cash flows, and of functional expenses.

Chapter five ('Comparisons of Interim and Audited Financial Statements', pp. 30-33) clarifies the board's prerogative to see interim data in the form it deems most helpful, as opposed the GAAP-standardized format of year-end audited statements.

Chapter six ('How to Use Financial Information to Perform Legal and Fiduciary Responsibilities', 34-35) and seven ('How to Use Financial Information to Determine Organizational Performance', pp. 36-49) illustrate the use of financial data. Nonprofit managers will find the consideration of benchmarking and trending in the final chapter particularly useful.

The book is attractively presented and includes useful 'hints for board members' throughout. It should become a well-worn companion to nonprofit board members (for whom it claims to have been written) and executives (who will do well to acquire their own copy rather than peering over the shoulder of their board colleagues).