The Volunteer Treasurer's Handbook
Financial Management Building Blocks for Not-for-Profit Organizations
Financial Management Building Blocks for Not-for-Profit Organizations
New for 2020 ― and now in its third edition, updated with a COVID-19 response and new accounting rules (see GAAP UPDATE ALERT, below*)― this book (first published in 1999) is a handy guide for busy volunteer treasurers. But while it speaks directly to treasurers, reading it would likely also benefit board chairpersons, presidents, all finance, budget, investment and audit committee members, and selected staff, of most not-for-profit organizations.
Many people who volunteer to serve as an organization’s treasurer naively believe their responsibilities as such will be limited to doing the banking and reconciling the bank accounts, signing the checks and reporting the bank balance at board meetings. Nothing could be further from the truth, and this book is not for people who want to be that kind if treasurer. The treasurer's job is not only much broader than that; it is central ― in a word, it is vital! The treasurer's financial management role is the very heart of the organization!
This book will help you fully recognize and appreciate the depth and breadth of your role and formidable responsibilities as treasurer of your organization and further acquaint you with the basic building blocks with which you can help assure a sound financial management structure to enable it to carry on its mission effectively and efficiently for the foreseeable future. It explains the fundamentals of financial management, including the complex aspects of generally accepted accounting principles that are especially applicable to not-for-profit organizations, summarized concisely in clear, simplified and practical terms.
Authored by a nationally-recognized CPA with over 50 years experience, who served for many years as the volunteer treasurer of a national health charity, this book is for individuals who are dedicated to the mission of an organization and who want to take their job as treasurer seriously. Use it regularly, and you will help your organization instill trust and confidence in its commitment to fiscal integrity and responsible leadership among its many constituencies who provide ― and receive ― its support, including donors, grantors and program beneficiaries, and among concerned "watchdog" organizations and regulators acting in the public interests.
181 pp. (with glossary and index)
181 pp. (with glossary and index)
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* GAAP UPDATE ALERT: Described below are significant GAAP developments not yet effective at the time of publication of the HANDBOOK and, therefore, readers are cautioned that they are not illustrated in EXHIBIT A:
Effective for years ending after June 15, 2022 ― Starting at the bottom of p. 37, the HANDBOOK briefly describes then prospective new disclosure requirements regarding contributed services and other nonfinancial assets donated. Under ASU 2020-07, not-for-profit organizations will be required to present contributions of nonfinancial assets as a separate line item in the statement of activities, apart from contributions of cash or other financial assets, and disclose the amount of such contributed nonfinancial assets received during the reporting period in a disaggregated form, along with certain other information.
For each disaggregated category disclosed, the following disclosures will also be required:
The new disclosure requirements apply also to contributed services whether they have been given accounting recognition in the financial statements or not. Entities are required to describe the nature and extent of such contributed services received for the period, the programs or activities for which they were used, and the amount, if any, that was recognized as revenue for the period. Entities also are encouraged to disclose, if practicable, the estimated fair value of contributed services received that was not recognized as revenue.
* GAAP UPDATE ALERT: Described below are significant GAAP developments not yet effective at the time of publication of the HANDBOOK and, therefore, readers are cautioned that they are not illustrated in EXHIBIT A:
Effective for years ending after June 15, 2022 ― Starting at the bottom of p. 37, the HANDBOOK briefly describes then prospective new disclosure requirements regarding contributed services and other nonfinancial assets donated. Under ASU 2020-07, not-for-profit organizations will be required to present contributions of nonfinancial assets as a separate line item in the statement of activities, apart from contributions of cash or other financial assets, and disclose the amount of such contributed nonfinancial assets received during the reporting period in a disaggregated form, along with certain other information.
For each disaggregated category disclosed, the following disclosures will also be required:
- Qualitative information about whether the contributed nonfinancial assets were either monetized or used during the reporting period, and for those that were used, a description of the programs or other activities in which the assets were used,
- The organization’s policy (if any) about monetizing rather than using contributed nonfinancial assets,
- A description of any donor-imposed restrictions associated with the contributed nonfinancial assets,
- A description of the valuation techniques and inputs used at initial recognition to arrive at a fair value measure, and
- The principal market (or most advantageous market) used to arrive at a fair value measure, if the recipient organization is prohibited by a donor-imposed restriction from selling or using the contributed nonfinancial assets in that market.
The new disclosure requirements apply also to contributed services whether they have been given accounting recognition in the financial statements or not. Entities are required to describe the nature and extent of such contributed services received for the period, the programs or activities for which they were used, and the amount, if any, that was recognized as revenue for the period. Entities also are encouraged to disclose, if practicable, the estimated fair value of contributed services received that was not recognized as revenue.
