1. Budgeting and Planning
Develop an annual budget that aligns with the organisation’s mission and strategic goals.
Involve board members, staff, and key stakeholders in the budgeting process.
Ensure that the budget is realistic, balanced, and includes both income and expense projections.
Continuously monitor and compare actual financial performance against the budget.
2. Financial Policies and Procedures
Establish clear financial policies and procedures that outline how financial transactions are handled, including authorisation levels and segregation of duties.
Document processes for financial reporting, reimbursement of expenses, and procurement of goods and services.
Regularly review and update these policies to stay in compliance with legal and regulatory requirements.
3. Cash Flow Management
Develop a cash flow projection to anticipate and plan for the organisation’s short-term cash needs.
Monitor cash flow regularly, ensuring that there are sufficient funds to cover operational expenses and obligations.
Maintain a cash reserve or contingency fund to address unexpected financial challenges.
4. Revenue Diversification
Diversify revenue sources to reduce reliance on a single funding stream. This may include grants, donations, earned income, membership fees, and fundraising events.
Cultivate donor relationships and engage in ongoing fundraising efforts to sustain and grow revenue.
5. Expense Control and Monitoring
Closely monitor expenses to ensure they are in line with the budget and organisation’s goals.
Implement cost-control measures, such as competitive bidding for contracts and regular expense reviews.
6. Financial Reporting
Generate regular financial reports that provide a clear and comprehensive view of the organisation’s financial health.
Share financial reports with the board of directors, staff, and stakeholders to promote transparency and accountability.
Comply with any legal and regulatory reporting requirements.
7. Grant Management
Establish a systematic approach to managing grants, including grant proposal development, compliance monitoring, and reporting.
Keep accurate records of grant-related expenses and outcomes to ensure compliance and accountability to funders.
8. Audit and Internal Controls
Conduct an annual financial audit or review by an independent auditor to assess the accuracy and integrity of financial records.
Implement internal controls to safeguard assets, prevent fraud, and ensure compliance with financial policies.
9. Board Oversight
Engage the board of directors in financial oversight and decision-making.
Appoint a finance or audit committee responsible for regularly reviewing financial reports, policies, and internal controls.
10. Long-Term Financial Planning
Develop a strategic financial plan that addresses long-term sustainability, capital investments, and growth initiatives.
Explore opportunities for endowment funds or planned giving to secure the organisation’s future.
11. Transparency and Communication
Maintain open and transparent communication with donors, funders, and the public regarding the organisation’s financial status and impact.
Provide donors with clear information on how their contributions are used to support the mission.
12. Training and Capacity Building
Invest in training and capacity building for staff and board members to ensure they have the necessary financial knowledge and skills.
13. Compliance and Legal Matters
Ensure compliance with all legal and regulatory obligations, including filing annual reports and maintaining tax-exempt status.