November 2007

At NAF, when we think about fall, we think of Minnesota-grown honeycrisp apples, leaves turning color, and going back to school. While we may no longer ride a school bus, providing excellent and accessible financial management training is an important part of what we do. We've had a full training schedule this fall, with over 31 different events, including Kate's seminar at the MCN Annual Conference. In September and October alone we trained 334 people in Greater Minnesota and 270 people in the metro area. To learn more about future trainings, read the "Upcoming Workshops" section or visit our Web site.

This issue of Nonprofits Count:

• Financial Policy Example
• Helping Nonprofits Thrive - Minnesota Waters
  
• Upcoming Workshops
  
• NAF News

Financial Policy Template

Developing and adopting a written financial policy is a valuable practice for any nonprofit organization, no matter how small or large. Financial policies clarify the roles, authority, and responsibilities for essential financial management activities and decisions. In the absence of an adopted policy, staff and board members are likely to operate under a set of assumptions that may or may not be accurate or productive. Whether the policy is short and simple, or long and comprehensive, there are five essential policy areas that must be addressed: delegation of authority; conflicts of interest; responsibility for financial reports and records; specific authority for spending funds; and specific authority for entering into contracts. If the idea of creating a financial policy seems daunting, this basic guideline and example for policy development may be helpful. For other ideas about financial policies, BoardSource has an excellent publication, The Policy Sampler, available from their bookstore, http://www.boardsource.org/Bookstore.asp. If you'd like hands-on help in developing policies for financial management and internal controls, register for the January 15th workshop, Financial Policies for Internal Controls.

Helping Nonprofits Thrive - Minnesota Waters

"Working with Nonprofits Assistance Fund gave us peace-of-mind and helped us see clearly through the merger dust," Bruce Johnson, Executive Director of Minnesota Waters.

In January 2006, the River Council of Minnesota and the Minnesota Lakes Association joined forces and became Minnesota Waters. The organization had been focused primarily on the merger and sustaining delivery of programs and services, so it had little time to dedicate to fundraising and development. At the same time, new programs were being created and existing programs were growing. Without the funding to support these opportunities, Minnesota Waters found its debt climbing.

Minnesota Waters Executive Director Bruce Johnson turned to NAF and loan officer Phil Hatlie. Phil helped him review debt management options and revamp the financial management system. Phil also trained the board on financial management systems and how to interpret financial statements, as well as assisted them find the right firm to handle the first audit as a merged organization. At the same time, NAF approved two loans to Minnesota Waters to restructure its debt.

Since working with NAF, Minnesota Waters has made a number of changes to their financial management practices. Reducing the organization's debt and improving its financial system have freed up staff to focus on what they're passionate about - conserving Minnesota's lakes and rivers.

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

NAF News

• Kate Barr Featured in The NonProfit Quarterly Fall 2007 Issue
• Highlights from the MCN Conference
• NAF Welcomes Marketing Coordinator
  

Kate Barr Featured in The Nonprofit Quarterly Fall 2007 Issue
The Nonprofit Quarterly asked Kate to explain and interpret the recent changes to nonprofit audits with SAS 112. Her article demystifies what the new standards mean, their potential traps, and gives practical advice on how to understand the findings. By unpacking the new standards and terminology, she helps nonprofit staff, foundation officers, and board members understand what their organization's management letter is really saying. You can download the entire article here. For more information on The Nonprofit Quarterly, visit their Web site at www.nonprofitquarterly.org.

Highlights from the MCN Conference
The first week in October NAF traveled to Duluth to participate in the annual MCN conference. As always, it was a great event and a wonderful opportunity to interact with our peers in the nonprofit community. Every chair in the room was full for Kate's popular seminar, Creating Nonprofit Financial Capital. Participants learned how to decipher the various types of capital and participated in a discussion of current and emerging approaches to capital planning and management and how to communicate the benefits of investing in the success of a nonprofit. Thanks to everyone who attended the seminar or visited the NAF booth. And a special thank you to MCN for inviting us to participate.

NAF Welcomes Marketing Coordinator
Earlier this fall, Ashley Schweitzer joined NAF as the Marketing Coordinator. Ashley previously worked at Grassroots Solutions, a national consulting firm that specializes in grassroots organizing. While there she assisted with evaluations of civic engagement and community organizing efforts, the development of training programs, and the creation of grassroots organizing plans. She is a graduate of Macalester College. Ashley is excited to be a part of the NAF team and will oversee our marketing and communications activities.

Please join us in saying good bye to NAF Training Coordinator Diane Tsurutani, who left the organization at the end of October. Diane played the important role of ensuring that our training program ran smoothly. Diane, you are greatly missed and we wish you the best in all of your future endeavors.