Financial Management Case Learn For Nonprofit Organizations

Ready, Set, and Read is a nonprofit preschool and daycare that gives a safe, comfortable, and educational haven for children of below privileged areas. It offers a location where parents can look good about where their child is and have knowledge of that they can be safe as well as getting an education. They were possessing a hard time planning for unforeseen circumstances and did not hold a good grasp on where their cash went or what they should system for. Ready, Set, and Read did not hold a dedicated person handling the financial responsibilities regarding the organization and handled the finances like a group. They were in dire need of establishing financial controls and managing all financial aspects of its organization.

In addition, there was a backlog of up to six months of financial facts that had not been recorded or accounted for. They did not hold a clean picture of their financial the past and did not hold a clean picture of what they expected for the new year. Ready, Set, and Read began by creating a Financial Manager position. All regarding the return logged facts was immediately logged. All of their expenses were tracked by categories.

They established an annual budget and planned ahead for difficult financial times by developing a reserve fund. Internal controls were implemented to help prevent improper use of cash and helps make sure that price control. Standard audits and financial reviews are conducted to ensue that the right tactics are in location and change anything that wants to be changed. Staying abreast of their organization's finances on a standard basis helped manage costs, determine where their cash was going, and where things wanted to be changed. Establishing an annual budget and meeting regularly about it helped everyone understand the importance of fiscal responsibility.

This case read was prepared by Netta Dankel regarding the Center for Nonprofit Success. For more case studies on nonprofit management, see the Center for Nonprofit Success webpage at: For a calendar of our upcoming seminars on nonprofit management, leave to.