May 2007

Each quarter, Nonprofits Count will highlight a sector of the nonprofit industries served by NAF. This month, the focus is charter schools. Read ahead to learn more about one particular charter school NAF worked with and what NAF is doing in the charter school community in Minnesota.

This issue of Nonprofits Count:

• Organizing your financial reports
  
• Helping Nonprofits Thrive - Metro Deaf School
  
• Upcoming Workshops
  
• NAF News

My Reports Are Due - When?

In May, many nonprofits file the annual 990 with the IRS; now is a good time to organize all of the required reports for your organization. Necessary financial accountability is demonstrated by operating with open communications, accessible information and avenues for public input. The most public evidence of accountability is achieved by complying with required financial and legal reporting requirements.

Maintaining a schedule of critical financial and administrative deadlines can help ensure accurate recordkeeping and timely reporting. NAF has created a basic Financial and Administrative Activity Schedule to help your organization get started.

Helping Nonprofits Thrive - Metro Deaf School

With more than 130 charter schools in the state and 23,478 students enrolled, Minnesota is leading the way when it comes to charter schools. Metro Deaf School (MDS) is the nation’s second charter school to open and the only one in the state that caters to deaf and hard of hearing elementary students. As the school continued to expand, the need to own its own building became clear. Because state laws prohibit charters schools from owning a building, a nonprofit named 1House2Hands was created with the sole purpose to own and lease a building to MDS.

MDS approached its bank to get a loan for the building of their choice and discovered that a 20 percent down payment would be required in order to receive the much-needed financial assistance. Nonprofits Assistance Fund was able to provide the necessary funds to MDS and, as a result, the school opened its new building in January 2007.

This inspiring story can be found, along with many others, on the NAF Web site.

NAF News

As the end of another school year quickly approaches, NAF looks back on the outstanding work we have accomplished with charter schools in Minnesota.

Since 1997, NAF has originated 50 loans totaling $5.7 million to charter schools in Minnesota. Loans have been made to 32 schools, including both startup and established schools, ranging from $20,000 to $400,000. By providing financing, NAF helps to maintain a stable learning environment for thousands of students around Minnesota.

When the loan funds made the first loan to a charter school in the late 1990s, we reviewed them as we would any nonprofit. Over the last five years, NAF has developed special expertise in the finances of charter schools and their challenges and opportunities. Some of the key issues for schools are cash flow, financial management roles and responsibilities and the regulatory requirements of the state – student reports, detailed financial reports and annual audit.

NAF plans to build on this success and looks forward to working with more charter schools in the future .

For more information on charter schools in Minnesota, read Kate Barr’s blog: Charter School Myths and Realities.

Nonprofits Assistance Fund is a nonprofit community development organization that fosters community development and vitality by building financially healthy nonprofits. Nonprofits Assistance Fund provides financing for working capital, cash flow, equipment and facilities projects with a focus on strengthening the operation and mission of nonprofits. We also offer financial management workshops and advice that improve nonprofits' capacity to carry out their mission.