financial management: Templates and Samples

The following samples and templates are from the Minnesota Council of Nonprofits and other nonprofit management sources.

unified chart of accounts (ucoa)

The National Center for Charitable Statistics (NCCS) in conjunction with the Support Center of Washington, the California Association of Nonprofits (CAN), CompassPoint Nonprofit Services and the California Society of CPAs have developed a Unified Chart of Accounts (UCOA) for nonprofits.  The UCOA is designed so that nonprofits can easily translate their financial reports into the categories required on IRS Form 990.  The following link allows you to view the accounts and keywords, as well as freely download the UCOA in either a MS Excel spreadsheet or MS Access database.  

Click here for the link to the UCOA and NCCS website

sample financial procedures manual

To ensure maintenance of accurate financial records and that the organization's financial resources are used appropriately, a nonprofit should adopt a written set of internal financial controls.  These controls should be approved by the board and will serve to guide the organization's staff in sound financial decision making. This document is intended to serve as a guide, and may be modified to fit the organization's size and type.

Click here for the sample (PDF document: 32.3 KB)

sample fiscal sponsor agreement

Many new nonprofits, unincorporated organizations or individuals are looking for a way to take advantage of the benefits of tax exempt status even though they don't have the status themselves -- either because they don't qualify to apply for it or they don't in most cases need it.  When a nonprofit enters into a fiscal agent (also called fiscal sponsorship) agreement, it assumes certain legal responsibilities.  At the very least, the both parties should maintain a written agreement that describes each entities' responsibilities.  Organizations and individuals looking for sponsorship should understand that not all funders will support organizations through a fiscal sponsor.  The following sample is intended to be a guide only, and is not to be construed as legal advice.

Click here for the sample (PDF document: 14.1 KB)

Click here for an article from Legal Ease on Fiscal Agents (PDF document: 95.5 KB)

sample audit bid request letter

Before hiring an audit firm, your organization will want to interview several candidates to compare their approach, fees, timeline and limitations.  The link below contains a sample request for bid letter that outlines the organization's situation and expectations.   Many boards will form a special committee to review the proposals and to recommend a candidate to the organization's board.

Click here for the sample (6.41 KB)

Principles and Practices for Nonprofit Excellence:

Financial Management

Seven Practices

A. Financial Accountability

1.  A nonprofit should operate in accordance with an annual budget that has been approved by the board prior to the beginning of each fiscal year.

2. A nonprofit should create and maintain financial reports on a timely (at least quarterly) basis, accurately reflecting the financial activity of the organization, including the comparison of actual to budgeted revenue and expense.

3. A nonprofit with annual total revenues in excess of $350,000 should subject its financial reports to an annual audit (MN Law). A nonprofit under this threshold, or excepted by law, should have a CPA provide a review of its finances to the board annually.

4. Quarterly financial statements should be provided to the board of directors. The statements should explain any significant variation between actual and budgeted revenues and expenses.

5. A nonprofit should provide employees and volunteers with a confidential means to report suspected financial impropriety or misuse of organizational resources.

6. A nonprofit should have written financial policies governing the following matters, where appropriate: (a) investment of the assets of the organization; (b) internal control procedures; (c) purchasing practices; (d) reserve funds; (e) compensation, including salary and benefits; (f) expense account reporting; and (g) earned income.

7. A nonprofit may budget for a deficit from time to time but should not incur persistent or increasing operating deficits.

B. External Financial Arrangements

1. A nonprofit, with board approval and full knowledge of its legal obligations and liabilities, may undertake responsibility of serving as a fiscal agent for another organization with a related mission and should review this relationship annually.

2. Any subsidiary that a nonprofit establishes should be  in the direct furtherance of the mission of the organization.