Understanding Nonprofit Finances

Grantwriting Beyond the Basics Book 2
Understanding Nonprofit Finances by Michael K. Wells, CFRE

"Understanding Nonprofit Finances and its predecessor Proven Strategies live up to the promise of the Grantwriting Beyond the Basics series. I can't wait for the third book on evaluation."
Pauline Annarino, President, Grant Professionals Certification Institute
Principal, Nonprofit Navigators

Michael Wells, author of Proven Strategies, does it again with book two in the Grantwriting Beyond the Basics series, Understanding Nonprofit Finances. Concisely written in highly accessible language and loaded with hands-on examples, tables, figures, and forms, Understanding Nonprofit Finances is the most comprehensive book to date on the topic for grantwriters and other nonprofit professionals.

According to grantmakers, failure to present the budget clearly and tie it to the narrative is a mistake commonly made by even the most seasoned grantwriter, which can result in an unfunded grant. Understanding Nonprofit Finances prepares the grantwriting professional to do it right the first time around. One by one, Wells removes the barriers to understanding how the budget works and why it's such a key part of any grant proposal.

TOPICS

Finally, a book on nonprofit finances for the professional grantwriter that tackles it all.

Financial Statements

• how to read them
• what to provide a funder
• how audits work
• new accounting rules (SFAS 116 & 117) that dramatically changed nonprofit accounting
• using key ratios to determine financial health

Budgets

• how your organization's and project's budget relate to each other and to your grant

Tax Exemption

• what to look for in your 501(c)(3) letter
• the importance of 509(a) non-private foundation status
• how out-of-date state incorporation can endanger your exempt status
• what the Internal Revenue Code actually says

Form 990s

• why they're increasingly public and important
• what an actual marked-up copy of a Form 990 looks like, with tips on how it should be completed

What Foundations Look for in a Proposal, from a Financial Viewpoint

• conversations with program officers and federal readers
  a widely used evaluation tool

Federal Grants

• how to fill out the 424 forms
• indirect cost rates
• OMB circulars, etc.

Government Accounting

• grantwriters in local governments face different accounting rules than nonprofits
• government accounting changes in the 1990s
• GASB 34

Canada

• differences in Canadian tax law and accounting principles

…and much more.