Accounting and Financial Operations for Nonprofits in Rural Housing

摘要

Many nonprofit organizations engaged in rural housing development are so small that no one on staff has extensive accounting and financial operations experience, so it is especially important for boards of directors and managers of those organizations to be knowledgeable about accounting and financial management. Yet, while the board members and managers of such organizations may be very skilled in their particular fields of expertise, they often lack an understanding of accounting practices and principles, budgeting, and financial management systems for nonprofit housing developers. The sanctions imposed on nonprofits that cannot demonstrate adherence to laws and regulations include penalty assessments, a loss of tax-exempt status, return of government grant funds, and, in cases of fraud, criminal prosecution. As a fiduciary over a public trust, the board of directors should educate itself about these responsibilities, and an organizations management should acquire an understanding of accounting and financial operations. The purpose of this manual is to convey, in terms that are as straightforward as possible, the basic information necessary to manage the accounting and financial areas of the organization. Although information is included concerning the actual processing of transactions and reconciling of accounts, this manual is not intended to provide detailed bookkeeping instruction, but rather to provide an overview of the critical accounting and financial areas for which nonprofits are responsible. The board of directors and management are encouraged to consult with recognized professionals in carrying out their duties, and lists of material referenced by topic are included in the back of this publication to direct the reader desiring more detail.