Why are financial statements required by not-for-profit organisations?
Depending on the structure of your not-for-profit, its governing legislation may require periodic financial reporting as part of your governance obligations.
Funding providers (both private and Government) often require financial statements as part of their acquittal process. Members and other stakeholders in your community organisation can also impose financial reporting obligations through your not-for-profit Constitution.
Financial statements are also used for internal purposes by management and staff to maintain a viable community organisation.
Competent Financial Literacy for all key staff of not-for-profits
The form and content of financial statements prepared by various not-for-profit organisations can vary significantly depending on size, type, and statutory or other specific requirements. We are able to guide not-for-profits on the financial statements applicable for their organisation.
Common questions you may have about not-for-profit financial statements include:
- How well has the entity performed in meeting its objectives?
- What is the financial strength of the entity?
- Has the entity fulfilled its commitments in exchange for funds received?
- Does the entity have a viable and sustainable future?
- Is this an entity (or activity undertaken by the entity) I want to donate to or contribute funds to?
- How effective is the entity’s management?
Financial Management Training for Not-for-Profit Boards
Board and management committee members have a legal obligation to be able to read and interpret financial reports and make financial decisions in the interest of the organisation they represent. Our financial management training is a must for all board members and key staff to make sure you understand fundamental principles for sound financial decision making and good governance.
Our Seminars, Workshops and Training bring financial management back to basics and cuts through the complexity to make sure you have the skills required to position your community organisation for financial sustainability and success.
Financial Literacy for not-for-profit Boards
Check our training options to ensure you:
- Understand financial reports and how to interpret them
- Gain an understanding of the significance of cash flow to plan for sustainability
- Develop a working knowledge of essential accounting concepts
- Make sure you’re across key financial concepts critical for business management and board decision making
Community Compass works with various government departments, local Councils, Industry groups and Peak bodies to provide free and low-cost services where possible.
Look out for upcoming workshops we will be providing via our partnerships to provide expert tips and guidance in managing your not-for-profit organisation’s budget and cost control.