As a nonprofit financial manager, you have a lot on your plate. Not only do you need to keep the books and manage the money, you also need to set financial policy and direction.
One place to look for future trends in nonprofit financial management is The Financial Report of the United States Government. This 10-K for the government contains annual reports from 150 federal entities. Reading this document can tell you about how various federal agencies may change their policies or adapt to the new year.
The report is prepared annually by the Treasury Department. It contains nearly every brand of the federal government with the exception of the Federal Reserve, among others. The focus is on the government’s fiscal performance for the previous year, but it contains some useful gems of information about trends and future direction. It’s this information that may be valuable to nonprofit financial managers.
Which Way the Wind Is Blowing …
Reading through the information in the document, or the summaries provided by each agency, you can begin to glean some of the trends found within the jargon. Some of the government bodies use reporting methods similar to what you have seen from corporations, but others use specific government-formula reporting to account for their finances.
Among the notes that accompany the finances are useful bits of information that may be quite helpful to your nonprofit organization. For example, if you work for a nonprofit that provides health or health-related services, reviewing the Department of Health and Human Services’ information in the complete report may help you understand the government’s priorities. This in turn may lead to pursuing federal grants and other funds based on such priorities, or aligning your nonprofit with general trends to better serve people.
Nonprofit Financial Managers to the Rescue
Nonprofit financial managers have an important role to play in the analysis of the federal budget information. With your experience and knowledge, you can translate the important points for your organization and help others understand the information that may affect their work in the new year.
The AICPA has published a special report to go along with the main document. What’s At Stake provides information for financial managers curious or concerned about the contents of the federal document.
RBP Methods can help you navigate future changes in nonprofit financial management. We provide accounting software, advice, and consulting for nonprofit organizations. Our financial management systems include software such as Abila MIP Fund Accounting™ and AccuFund Accounting Suite. These and other software solutions for nonprofit organizations provide easy to use, understandable, and useful software to track finances for nonprofits, manage donations, donor campaigns, and much more. Contact us or call 503-648-9051 for a consultation.