Key Points
- There are many finance tasks to consider in managing your organisation’s money – budgeting, raising funds, spending, tracking and reporting your on money. There are very well-developed frameworks to become familiar with that guide all of these processes.
- If your organisation’s activities are inherently risky your Committee or Board needs to devote significant time and attention to assessing and mitigating those risks. The good news is there are very advanced risk frameworks available for free.
There are many dimensions to managing the finances of your organisation and the regular review of financial reports around the Committee or Board table is one of the most important governance functions.
Budgeting and planning ahead are important to make sure you have the resources to carry on the work of the organisation and remain solvent. Having sound financial controls and good financial processes protects against fraud but also allows you to keep track of how your money is tracking against your budget. Having rules about how your organisation can spend money – and who is authorised to do it (usually known as financial delegations) – are an important feature of these financial controls. Depending on how your organisation raises funds there will be regulations that apply – with some, such as obtaining a fundraising license or permit, varying State by State. Reporting to members, regulators and stakeholders about how your money is being managed is an important part of the accountability mechanisms for organisations. Managing savings your organisation has built up over time – known as reserves – is important for long-term sustainability.
Different organisations have different risks so spending time identifying and assessing the risks that apply to your organisation – and making plans to mitigate against those risks – is an essential duty of your Committee or Board. Risk management doesn’t have to be complicated. Indeed it is much better to have some simple risk processes than none at all. But for organisations dealing in higher risk activities, such as serving vulnerable people or working with children, risk processes should be a major preoccupation of your governance processes. The risk management plan templates in the resources below are a good place to start in building risk processes for your organisation.
Top Tip
Take time regularly to think about how well your financial and risk processes are working. Continually reviewing and refreshing these processes will ensure your organisation is able to continue its activities long into the future.
Want more? ... check out these resources
Online article - Institute of Community Directors - 7 minute read
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Here’s a great place to start when you’re ready to go deeper on the financial processes that keep your organisation running. Covers everything from financial administration, budgeting, planning and reporting and auditing.
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If you missed it in our Starting Out section, this pretty comprehensive but not too overwhelming guide to managing the finances of charitable organisations from the ACNC has some great tools and tips. Click on the “Setting up strong financial controls” section for a very practical list of the routines you should have in place to keep your money safe.
Online toolkit - Australian Charities and Not-for-profits Commission - Over 10 minutes
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Now you are a more experienced Committee member you’ll be relied on to consider extra matters – like long-term financial planning. This online resource from the ACNC and Justice Connect gives great guidance on managing money built up over time, known as reserves.
Downloadable guide - Ourcommunity.com.au - Over 10 minute read
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If you watched the webinar with a similar title in the Starting Out section, this resource is like the book of the film. It’s long, but very clearly written and you can dip in and out of different finance topics over time. A good one to print out and keep on your bedside table.
Downloadable guide - Chartered Professional Accountants (Canada) - Over 10 minute read
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Click on the download button on this page from the Canadian CPA website to get a pretty comprehensive pdf guide on managing risk in not-for-profits. It’s from our Canadian cousins, but still really relevant.
Online article - Institute of Community Directors - 7 minute read
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Risk isn’t always the job of the Treasurer, but this online fact sheet has got some great simple advice on setting up a doable risk system – including a very useful 10-point risk management plan (scroll down a little way to find it).
Template - Business Victoria - 2 minute read
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If you Google “Risk register template” or similar, you’ll unearth a billion templates for assessing the likelihood and consequences of a particular risk coming to pass. This template from Business Victoria is simple to use … but search up others if it doesn’t quite hit the mark for your organisation.
Booklet - Ourcommunity.com - 1-2 hours
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This comprehensive booklet from ourcommunity.com has detailed run down of the Treasurer’s role laid out as 25 questions you can ask yourself as you grow into this role. Take your time and break it down into sections you can manage. You can download or order a free hard copy if that suits you better.