1. NONPROFITS AS FINANCIAL ENTITIES Nonprofit Financial Management/ Fiscal Management & Budgeting

2. WHAT MAKES NONPROFITS DIFFERENT FROM FOR-PROFIT BUSINESSES? WHAT ARE FINANCIAL ISSUES CURRENTLY FACING NONPROFITS? HOW SHOULD THESE BE ADDRESSED? Questions

3. For-Profit Non-Profit Use of funds = distribution of profits Revenue Profits – distributed, may be reinvested Success is monetary Use of funds = no distribution of profits Revenues – donations, grants, contracts, third party revenue Profits – reinvested, not distributed Success is social good Organizational Characteristics

4. Giving in US Economy 2007 - $306.4 billion 2006 - $295 billion

5. Nonprofits in the economy As of the second quarter of 2004: Employment in charities = 10.5% US economy (14.1 million jobs) Wage total = $321.6 billion

6. FOR NEXT WEEK: READINGS PRINT OUT GUIDE FOR REFERENCE NAMEPLATES ARTICLE REVIEW AND TOPIC PAPERS Questions?