What Story Do Net Assets Tell About Your Organization and How to Explain it to Your Board
June 30, 2016
Net Asset classifications are unique to nonprofit organizations and frequently management and board members do not have the financial literacy skills to interpret this information. The senior finance staff member is often the only one available to educate the ED and the Board. It can be particularly challenging with board members that only have experience in the for-profit sector. The net asset classifications can provide insight into an organization’s revenue mix, available capital, overall financial condition, and ultimately, stability and sustainability. Ed Mulherin from Ecratchit will explain the unrestricted, temporarily restricted, and permanently restricted net asset classifications that appear on nonprofit financial statements, how to interpret this information, and provide some tips on how to explain it all to your Board.
Edward M. Mulherin, CPA, Esquire is Founder & CEO of eCratchit. Ed has over 30 years of experience providing accounting and business consulting services to a variety of clients. In 2001, Ed founded eCratchit, which provides web-based bookkeeping and accounting services. Ed has been the Virtual CFO for dozens of companies over the past 10 years providing strategic financial thinking, consulting on issues of cash flow, nonprofit sustainability, short and long term financial planning, banking and financing issues.
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