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Nonprofit Finance Topics

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Get to know terms and and topics across innovation, development, industry, society, and culture.

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What is Major Gifts?

Major gifts are significant philanthropic contributions that provide transformative funding and strategic support for nonprofits, enabling sustainable growth and innovation in social impact and international development.
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Featured Topics

Proximatepedia brings together two essentials every mission-driven.

OMB Uniform Guidance (2 CFR 200)

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Indirect Cost Rate (NICRA, de minimis)

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Adjustments for Non-Cash Items (Depreciation, In-Kind Contributions, Unrealized Gains/Losses)

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CSR Partnerships (Cause Marketing, Co-Branded Campaigns)

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Social Innovation

Definitions focused on work to improve life for people and planet.

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Change in Net Assets With Donor Restrictions

The change in net assets with donor restrictions shows how nonprofits manage funds tied to donor conditions, ensuring compliance, transparency, and alignment with mission-driven outcomes in social innovation and international development.
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Finance & Audit Committee Roles

Finance and audit committees provide critical oversight of nonprofit financial management, ensuring accountability, compliance, and strong governance especially in complex, multi-donor international contexts.
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Line-Item Budget

Line-item budgets provide nonprofits with detailed expense categories to ensure transparency, compliance, and accountability, especially in social innovation and international development contexts.
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What is...

Franchise ModelAverage Gift SizeCommunities of PracticeMessaging and Brand DevelopmentLearning SpecialistEngineering ServicesSecrets ManagementFinancial ServicesAdvocacy & Policy ExpensesParticipatory Design and Co CreationEvent Driven ArchitectureOrganizational Development ManagerDigital SolutionsMainstreamingFundraising Proposals and SolicitationFranchise ModelAverage Gift SizeCommunities of PracticeMessaging and Brand DevelopmentLearning SpecialistEngineering ServicesSecrets ManagementFinancial ServicesAdvocacy & Policy ExpensesParticipatory Design and Co CreationEvent Driven ArchitectureOrganizational Development ManagerDigital SolutionsMainstreamingFundraising Proposals and Solicitation

Sustainable Development

Terms associated with development policy, funding, and delivery systems.

Pension and Benefit Obligations

Pension and benefit obligations are critical long-term commitments for nonprofits, impacting staff retention, financial stability,...

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Restricted versus Unrestricted Revenue Ratio

The restricted versus unrestricted revenue ratio reveals how nonprofits balance donor-imposed funding with flexible resources,...

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Bridge Funding (gap coverage)

Bridge funding helps nonprofits cover short-term financial gaps, ensuring continuity and stability in mission-critical activities...

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Total Liabilities and Net Assets

Total liabilities and net assets provide a comprehensive snapshot of a nonprofit's financial position, reflecting...

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Social Finance

Concepts associated with funding and investment for social impact.

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Current Assets

Current assets are vital for nonprofits to maintain liquidity, meet short-term obligations, and ensure program continuity, especially in social innovation and international development sectors.
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Reconciliation (Bank, Grants, Subledgers)

Reconciliation ensures financial records match actual transactions, supporting accuracy, accountability, and trust for nonprofits managing multi-donor funding and restricted funds in social innovation and international development.
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Grants and Contracts (Exchange Transactions)

Grants and contracts as exchange transactions involve nonprofits providing goods or services in return for funding, requiring distinct accounting, compliance, and management approaches to ensure accountability and financial sustainability.
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Policy and Governance

Themes concerning the role of public decision making and the good society.

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Depreciation Schedules

Depreciation schedules help nonprofits allocate asset costs over time, enhancing financial transparency, budgeting accuracy, and long-term planning for social innovation and international development organizations.
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Cost Effectiveness Analysis

Cost effectiveness analysis helps nonprofits evaluate and compare program costs and outcomes to ensure optimal resource allocation and maximize impact in social innovation and international development.
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Net Assets With Donor Restrictions

Net assets with donor restrictions are crucial for nonprofits to track donor commitments, ensure compliance, and maintain accountability, especially in social innovation and international development sectors.
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Impact Evaluation

Topics focused on monitoring, evaluating, and learning in change and impact.

Program gate closing with coins symbolizing exit costs

Exit Costs (Program Closure/Transition)

Exit costs are essential for nonprofits to responsibly close or transition programs, protecting beneficiaries, honoring commitments, and maintaining trust with donors and communities.
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Statement of Financial Position (Balance Sheet)

The Statement of Financial Position provides a snapshot of a nonprofit's financial health, showing assets, liabilities, and net assets to assess liquidity, sustainability, and stewardship for funders, boards, and partners.
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Management Letter

Management letters provide nonprofits with auditors’ observations on internal controls and recommendations, helping improve governance, compliance, and operational efficiency across multiple grants and geographies.
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Technology for Good

Concepts related to the role of tech in social innovation.

Program Indirect Expenses (Shared Costs Allocated)

Program indirect expenses are shared costs essential for nonprofit sustainability, requiring transparent allocation to build...

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Matching Funds / Cost Share

Matching funds, or cost share, show commitment from nonprofits and communities, helping secure larger grants...

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Cost per Outcome

Cost per outcome measures the financial resources needed to achieve meaningful change, emphasizing real-world results...

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Management Letter

Management letters provide nonprofits with auditors’ observations on internal controls and recommendations, helping improve governance,...

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Proximatepedia List of Concepts

Accounting Policy Assumptions Accounts Payable Accounts Receivable Accrual vs. Cash Basis Procedures Accrued Expenses Accumulated Depreciation Adjustments for Non-Cash Items (Depreciation, In-Kind Contributions, Unrealized Gains/Losses) Administrative Expense Ratio Advocacy & Policy Expenses Annual Giving Programs Audit Readiness (Single Audit, Donor Audit) Audit Trail Average Gift Size Beginning Cash and Cash Equivalents Beginning Net Assets Board-Designated Reserves Break-Even Analysis (for Earned Income Programs) Bridge Funding (gap coverage) Budget Narrative Budget vs. Actual Reports Burn Rate (Program Spending Pace) Capital Campaigns Capital Funding Cash and Cash Equivalents Cash Flow Timing (Disbursements vs. Spend) Cash Ratio Challenge / Matching Funds Change in Net Assets Change in Net Assets With Donor Restrictions Change in Net Assets Without Donor Restrictions Changes in Working Capital (Receivables, Payables, Prepaids) Charity Commission Annual Return (UK) Chart of Accounts (COA) Chart of Accounts (Grant-Specific Codes) Chart of Accounts (Grant-Specific Codes) Chart of Accounts (Grant-Specific Codes) Conferences and Convening Conflict of Interest Policies Consolidated Reporting Contributions (With Donor Restrictions) Contributions (Without Donor Restrictions) Contributions Restricted for Long-Term Purposes (e.g., Endowments, Capital Projects) Corporate Donors (CSR, Sponsorship, Partnerships) Corporate Social Responsibility (CSR) Giving Cost Allocation Cost Effectiveness Analysis Cost per Dollar of Contribution Raised Cost per Outcome Cost per Output Cost Principles (OMB Uniform Guidance, IFRS, etc.) Cost-Benefit Analysis Coverage of Annual Expenses by Net Assets Cross-Subsidization CSR Partnerships (Cause Marketing, Co-Branded Campaigns) Current Assets Current Liabilities Current Portion of Long-Term Debt Current Ratio Days Cash on Hand Debt Service Coverage Ratio Debt to Assets Ratio Debt to Net Assets Ratio Deferred Revenue Deferred Revenue (Advance Grant Payments) Depreciation Schedules Designated Funding Development Staff Costs Diaspora Donors Digital Campaigns (Peer-to-Peer, Crowdfunding, Social Media) Direct Costs Disclosure Requirements Donor Acquisition Cost Donor Audit / Compliance Audit Donor Compliance Matrix Donor Lifetime Value Donor Retention Rate Donor-Advised Funds (DAFs) Donor-Specific Guidelines Double-Entry Bookkeeping Earned Income Ratio Encumbrances (Committed Funds) Encumbrances (Committed Grant Funds) Ending Cash and Cash Equivalents Ending Net Assets Endowment Draws (Board-Approved Spending) Estimation Assumptions Event Gross Margin Exit Costs (Program Closure/Transition) Facilities & Occupancy (Rent, Utilities, Maintenance) Faith-Based Donors Finance & Audit Committee Roles Financial Assumptions Forecasting Assumptions Foundation Grants Full Cost Recovery Fundraising Direct Expenses (Campaigns, Appeals) Fundraising Expense Ratio Fundraising Expenses Fundraising ROI Generally Accepted Accounting Principles (GAAP) Government Grants & Contracts Grant Agreement / Award Letter Grant Budget Grant Dependence Ratio Grant Lifecycle Grant Management System (GMS) Grant Modifications / Amendments Grant Restrictions Grant Revenue Recognition (Conditional vs. Unconditional) Grant Risk Assessment Grants and Contracts (Exchange Transactions) Grants and Pledges Receivable Grants to Subrecipients / Partners Gross Margin Ratio Human Resources & Administration IFR4NPO (Emerging Nonprofit Standard) In-Kind Contributions (Goods, Services) Increase/Decrease in Net Assets Independent Audit Indirect Cost Rate (NICRA, de minimis) Indirect Costs (Overhead) Individual Donors (Small, Mid, Major) Institutional Donors (Foundations, Bilaterals, Multilaterals) Intangible Assets Internal Audit Internal Controls (COSO Framework) International Financial Reporting Standards (IFRS) Inventory Investment Return (Dividends, Interest, Gains/Losses) Investments (Long-Term) IRS Form 990 (U.S.) Journal Entries Legacy / Planned Giving Donors Licensing & Royalties Lifecycle Costs (Program Lifetime Costing) Line-Item Budget Major Gifts Management and General Expenses Management and Governance Management Letter Marketing & Communications Costs Matching Funds / Cost Share Membership Dues Membership Programs (Engagement-Oriented) Month-End Close Process Months of Cash on Hand Multilateral and Bilateral Donor Grants Net Assets Growth Rate Net Assets Released from Restrictions Net Assets to Liabilities Ratio Net Assets With Donor Restrictions Net Assets Without Donor Restrictions Net Cash Provided by (Used in) Financing Activities Net Cash Provided by (Used in) Investing Activities Net Cash Provided by (Used in) Operating Activities Net Increase (Decrease) in Cash and Cash Equivalents Net Special Events Revenue No-Cost Extension Non-Current Assets (Long-Term Assets) Non-Current Liabilities (Long-Term Liabilities) Notes Payable / Bonds Payable Notes to the Financial Statements OMB Uniform Guidance (2 CFR 200) Operating Contingency Operating Margin Ratio Operating Reserves Ratio Operating Support Pension and Benefit Obligations Pipeline (Planned Spend) Planned Giving (Bequests, Legacy Gifts) Pledges Receivable (Grant Commitments) Prepaid Expenses Pro Forma Proceeds from Borrowings (Debt Issuance) Proceeds from Sale of Investments or PP&E Product Sales / Social Enterprise Income Professional Services (Legal, Audit, Consulting) Program Budget Program Expense Ratio Program Expenses Program Indirect Expenses (Shared Costs Allocated) Program Service Fees (Tuition, Ticketing, Service Charges) Program Service Revenue (Exchange Transactions) Program vs Support Ratio Program-Specific Direct Expenses Programmatic Funding Project-Based Funding Property, Plant, and Equipment (PP&E) Prospect Research & Pipeline Management Purchases of Investments Purchases of Property, Plant, and Equipment (PP&E) Quick Ratio (Acid Test) Reconciliation (Bank, Grants, Subledgers) Recurring Subscriptions Repayments of Borrowings Reporting Requirements Reserves / Contingency Allocation Restricted versus Unrestricted Revenue Ratio Revenue Concentration Ratio Revenue Growth Rate Revenue to Expense Ratio Scalability Costs Scenario Planning Inputs Seed / Catalytic Funding Segregation of Duties Shared Costs / Pooled Costs Single Audit (U.S. Federal Funds) Small Gifts (Grassroots) Solvency Ratio Special Events – Direct Costs Special Events (Galas, Auctions, Walks) Special Events Revenue (Gross) Sponsorships Stability Ratio Statement of Activities (Income Statement) Statement of Cash Flows Statement of Financial Position (Balance Sheet) Strategic Opportunity Subrecipient Monitoring Surplus or Deficit Ratio Sustainability Planning (Post-Grant) Technology & Software (Program and Support) Time & Effort Reporting Total Assets Total Expenses Total Liabilities and Net Assets Total Net Assets Unallowable Costs Undesignated Funding Unit Cost / Cost per Beneficiary Value-for-Money (Economy, Efficiency, Effectiveness) Variance Analysis Volunteer Recruitment & Engagement Costs Whistleblower Policies Working Capital Ratio Workplace Giving & Payroll Deduction
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