Financial Management in NGOs (Powepoint)

Module 1: Introduction to Financial Management in NGOs

• Overview of financial management principles.
• Importance of financial management for NGOs.
• Key financial responsibilities within an NGO.
• Transparency, accountability, and ethical considerations.

Learning Outcomes:

• Define the role of financial management in NGOs.
• Explain the key financial responsibilities and accountability mechanisms.

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Module 2: NGO Financial Planning and Budgeting

• Budgeting in NGOs: definition and types (operational, project-based, etc.).
• The budget cycle and key stakeholders.
• Aligning budgets with organizational strategy and donor requirements.
• Monitoring and adjusting budgets.

Learning Outcomes:

• Create a detailed operational and project-based budget.
• Align financial planning with programmatic goals and donor expectations.

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Module 3: Grant and Donor Fund Management

• Types of grants and donor funding.
• Managing restricted vs. unrestricted funds.
• Compliance with donor agreements.
• Financial reporting requirements for different types of grants.

Learning Outcomes:

• Manage and report on restricted and unrestricted funds.
• Ensure compliance with donor financial requirements.

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Module 4: Financial Reporting and Auditing

• Key components of financial reports (income statement, balance sheet, cash flow).
• Internal and external financial reporting requirements.
• Preparing for and responding to audits.
• Tools for financial tracking and reporting.

Learning Outcomes:

• Prepare accurate financial reports for both internal use and external audits.
• Understand the audit process and prepare for successful audits.

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Module 5: Risk Management in NGO Financial Operations

• Identifying financial risks in NGOs (fraud, mismanagement, donor compliance).
• Strategies for mitigating financial risks.
• Role of internal controls and financial policies in risk management.

Learning Outcomes:

• Identify potential financial risks and develop mitigation strategies.
• Implement effective internal controls to manage financial risks.

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Module 6: Cash Flow Management

• Importance of cash flow in NGOs.
• Forecasting and managing cash flow for operational stability.
• Cash flow challenges in project-based funding environments.
• Tools and techniques for maintaining positive cash flow.

Learning Outcomes:

• Manage NGO cash flow to ensure operational efficiency.
• Use cash flow forecasting tools to anticipate financial challenges.

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Module 7: NGO Fundraising and Financial Sustainability

• Financial sustainability in the NGO sector.
• Diversifying income streams: donations, grants, social enterprises.
• Planning for financial sustainability beyond donor funding.

Learning Outcomes:

• Develop a financial sustainability plan for an NGO.
• Identify and secure diverse funding sources.

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Module 8: Financial Policies and Procedures

• Importance of clear financial policies and procedures.
• Key elements of financial policies in NGOs.
• Developing and implementing strong financial controls.

Learning Outcomes:

• Create and implement financial policies that ensure accountability.
• Establish financial procedures to maintain control and compliance.

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Module 9: Monitoring and Evaluation of Financial Performance

• Setting financial performance indicators.
• Monitoring financial progress against targets.
• Evaluating financial health and making adjustments.

Learning Outcomes:

• Monitor and evaluate financial performance to ensure alignment with goals.
• Use performance indicators to measure financial health.

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Module 10: Financial Management Tools and Software for NGOs

• Overview of financial management software for NGOs.
• Implementing and utilizing accounting systems.
• Integrating financial management tools with project management.

Learning Outcomes:

• Select and implement financial management software tailored to NGO needs.
• Integrate project management and financial tracking for efficiency.

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Module 11: Donor Relations and Financial Transparency

• Building trust with donors through financial transparency.
• Best practices for financial reporting to donors.
• Engaging donors in long-term financial planning.

Learning Outcomes:

• Develop transparent financial reporting systems that build donor confidence.
• Foster strong financial partnerships with donors.

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Module 12: Ethical Considerations and Financial Accountability

• Financial ethics in NGOs.
• Managing conflicts of interest and avoiding fraud.
• The role of governance in ensuring financial accountability.

Learning Outcomes:

• Promote financial accountability through ethical financial practices.
• Implement systems to prevent fraud and conflicts of interest.