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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 Value-for-Money (Economy, Efficiency, Effectiveness)?

Value-for-money (VfM) helps nonprofits balance cost savings, efficiency, and effectiveness to maximize impact and demonstrate accountability to donors and stakeholders in social innovation and development.
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Featured Topics

Proximatepedia brings together two essentials every mission-driven.

Cash Flow Timing (Disbursements vs. Spend)

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Accounts Receivable

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Budget Narrative

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Major Gifts

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Social Innovation

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

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Corporate Donors (CSR, Sponsorship, Partnerships)

Corporate donors provide nonprofits with funding, expertise, and partnerships that enhance impact, brand visibility, and long-term collaborations while requiring alignment with mission and ethical standards.
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Statement of Cash Flows

The Statement of Cash Flows reveals how nonprofits manage cash movement, ensuring financial resilience, sustainability, and operational viability, especially in social innovation and international development contexts.
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Notes to the Financial Statements

Notes to financial statements provide essential explanations behind numbers, enhancing transparency and accountability for nonprofits in social innovation and international development.
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What is...

Net Cash Provided by (Used in) Operating ActivitiesMonitoring, Evaluation, and Learning AutomationFundraising Pipeline DevelopmentCommunity FacilitiesNegotiation LeadLifecycle Costs (Program Lifetime Costing)Batch ProcessingFundraising Negotiation and ClosingChief Operating OfficerLine-Item BudgetSBOM and Dependency ProvenanceProspect Research OfficerIRS Form 990 (U.S.)Cost AllocationPro FormaNet Cash Provided by (Used in) Operating ActivitiesMonitoring, Evaluation, and Learning AutomationFundraising Pipeline DevelopmentCommunity FacilitiesNegotiation LeadLifecycle Costs (Program Lifetime Costing)Batch ProcessingFundraising Negotiation and ClosingChief Operating OfficerLine-Item BudgetSBOM and Dependency ProvenanceProspect Research OfficerIRS Form 990 (U.S.)Cost AllocationPro Forma

Sustainable Development

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

Capital Campaigns

Capital campaigns are intensive fundraising efforts that enable nonprofits to secure significant resources for major...

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Program Expenses

Program expenses are direct costs nonprofits incur to deliver mission-related activities, crucial for accountability, transparency,...

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Designated Funding

Designated funding provides nonprofits with resources restricted to specific donor-identified purposes, ensuring accountability but limiting...

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Reconciliation (Bank, Grants, Subledgers)

Reconciliation ensures financial records match actual transactions, supporting accuracy, accountability, and trust for nonprofits managing...

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Social Finance

Concepts associated with funding and investment for social impact.

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Non-Current Assets (Long-Term Assets)

Non-current assets are vital long-term resources for nonprofits, enabling program delivery, organizational stability, and growth in social innovation and international development sectors.
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Revenue to Expense Ratio

The revenue to expense ratio indicates whether nonprofits generate enough revenue to cover expenses, serving as a key measure of financial sustainability and fiscal health for social innovation organizations.
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Grant Management System (GMS)

A grant management system centralizes grant processes, improving efficiency, compliance, and accountability for nonprofits managing multiple funding sources and complex portfolios.
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Policy and Governance

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

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Accrual vs. Cash Basis Procedures

Accrual and cash basis procedures determine how nonprofits record income and expenses, impacting transparency, compliance, and financial decision-making, especially in social innovation and international development sectors.
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Donor-Advised Funds (DAFs)

Donor-advised funds are a fast-growing philanthropic tool offering tax benefits and flexible giving, crucial for nonprofits in social innovation and international development seeking sustained donor relationships and global impact.
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Segregation of Duties

Segregation of duties in nonprofits reduces fraud and error by dividing financial responsibilities, strengthening accountability, and building trust with donors and regulators.
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Impact Evaluation

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

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Encumbrances (Committed Funds)

Encumbrances are committed but unspent funds that help nonprofits manage budgets, avoid overspending, and provide transparency to donors and boards, especially in social innovation and international development.
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Management and General Expenses

Management and general expenses are vital for nonprofit infrastructure, supporting administration, governance, and compliance to ensure mission delivery and financial resilience.
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Program Budget

Program budgets connect nonprofit mission goals to resources, ensuring accountability, transparency, and efficient management of initiatives, especially in social innovation and international development.
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Technology for Good

Concepts related to the role of tech in social innovation.

Grant Revenue Recognition (Conditional vs. Unconditional)

Grant revenue recognition determines when nonprofits record grant income, distinguishing conditional from unconditional grants to...

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Subrecipient Monitoring

Subrecipient monitoring ensures partner organizations use funds appropriately, protecting nonprofits from risks and strengthening accountability...

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Total Expenses

Total expenses provide nonprofits a comprehensive view of costs, aiding transparency, efficiency evaluation, and strategic...

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Undesignated Funding

Undesignated funding offers nonprofits flexibility to cover core operations, invest in innovation, and respond to...

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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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