Professional Ethics in Non-profit Financial Management
Expert-defined terms from the Professional Certificate in Financial Management for Non-profits course at Stanmore School of Business. Free to read, free to share, paired with a globally recognised certification pathway.
Accountability refers to the responsibility of non #
profit organizations to demonstrate their actions and financial decisions to stakeholders, including donors, beneficiaries, and the general public, with transparency and integrity being essential components. Related terms include transparency, stewardship, and fiduciary duty. In the context of non-profit financial management, accountability involves ensuring that financial resources are used efficiently and effectively to achieve the organization's mission and goals.
Accrual accounting is a method of financial reporting that recognizes revenues a… #
Related terms include cash accounting, financial reporting, and generally accepted accounting principles (GAAP). Accrual accounting provides a more comprehensive picture of a non-profit organization's financial performance and position.
Annual report refers to a comprehensive document that non #
profit organizations prepare and distribute to stakeholders, which provides an overview of the organization's activities, achievements, and financial performance over the past year, including financial statements and narrative descriptions. Related terms include annual budget, Form 990, and audited financial statements. The annual report is an essential tool for non-profit organizations to demonstrate their accountability and transparency to stakeholders.
Audit committee is a group of independent individuals who oversee the financial… #
Related terms include internal audit, external audit, and financial reporting. The audit committee plays a critical role in ensuring the integrity of a non-profit organization's financial reporting and internal controls.
Budgeting refers to the process of planning and allocating financial resources t… #
Related terms include budget, financial planning, and resource allocation. Budgeting is essential for non-profit organizations to ensure that financial resources are used efficiently and effectively to achieve their mission and goals.
Cash flow management refers to the process of managing an organization's cash in… #
Related terms include cash flow statement, liquidity, and financial management. Effective cash flow management is critical for non-profit organizations to ensure that they can meet their financial obligations and achieve their mission and goals.
Charitable giving refers to the act of donating funds or resources to support a… #
Related terms include philanthropy, fundraising, and grantmaking. Charitable giving is essential for non-profit organizations to secure the financial resources they need to achieve their mission and goals.
Compliance refers to the process of ensuring that an organization adheres to rel… #
Related terms include regulatory compliance, risk management, and internal controls. Compliance is critical for non-profit organizations to maintain their tax-exempt status and avoid legal and financial risks.
Conflict of interest refers to a situation in which an individual's personal int… #
Related terms include ethics, governance, and fiduciary duty. Conflict of interest can have serious consequences for non-profit organizations, including damage to their reputation and loss of public trust.
Donor stewardship refers to the process of building and maintaining relationship… #
Related terms include donor relations, fundraising, and philanthropy. Donor stewardship is essential for non-profit organizations to secure long-term financial support and build trust with their donors.
Endowment refers to a fund or asset that is invested and managed to generate inc… #
Related terms include investment management, asset allocation, and spending policy. Endowments provide a critical source of long-term financial support for non-profit organizations.
Ethics refers to the principles and values that guide an individual's or organiz… #
Related terms include morality, integrity, and accountability. Ethics is essential for non-profit organizations to maintain public trust and ensure that their actions and decisions are guided by a strong moral compass.
Fiduciary duty refers to the legal and ethical responsibility of individuals or… #
Related terms include trust, loyalty, and care. Fiduciary duty is critical for non-profit organizations to ensure that they are managing their financial resources and assets in a responsible and ethical manner.
Financial management refers to the process of planning, organizing, and controll… #
Related terms include financial planning, budgeting, and financial reporting. Financial management is essential for non-profit organizations to ensure that they are using their financial resources efficiently and effectively.
Financial planning refers to the process of developing a comprehensive plan to a… #
Related terms include strategic planning, budgeting, and financial management. Financial planning is critical for non-profit organizations to ensure that they have a clear roadmap for achieving their financial goals and objectives.
Financial reporting refers to the process of preparing and presenting financial… #
Related terms include financial statements, accounting, and auditing. Financial reporting is essential for non-profit organizations to demonstrate their accountability and transparency to stakeholders.
Form 990 refers to the annual information return that non #
profit organizations are required to file with the Internal Revenue Service (IRS), which provides information about the organization's financial activities, governance, and compliance, and involves filing the Form 990 with the IRS. Related terms include annual report, financial reporting, and tax compliance. The Form 990 is an essential tool for non-profit organizations to demonstrate their accountability and transparency to stakeholders.
Fundraising refers to the process of securing financial resources from donors, g… #
Related terms include philanthropy, charitable giving, and development. Fundraising is critical for non-profit organizations to secure the financial resources they need to achieve their mission and goals.
Generally accepted accounting principles (GAAP) refer to the standardized guidel… #
Related terms include financial reporting, accounting, and auditing. GAAP provides a framework for non-profit organizations to prepare and present financial information in a consistent and transparent manner.
Governance refers to the system of rules, practices, and processes by which an o… #
Related terms include board of directors, leadership, and management. Governance is essential for non-profit organizations to ensure that they are managed in a responsible and ethical manner.
Grantmaking refers to the process of providing financial support to individuals,… #
Related terms include philanthropy, fundraising, and charitable giving. Grantmaking is a critical source of financial support for non-profit organizations and their programs.
Internal controls refer to the policies, procedures, and processes that an organ… #
Related terms include risk management, compliance, and audit. Internal controls are essential for non-profit organizations to ensure that their financial information and operations are accurate, reliable, and secure.
Investment management refers to the process of managing and investing an organiz… #
Related terms include portfolio management, asset allocation, and risk management. Investment management is critical for non-profit organizations to ensure that their financial assets are managed in a responsible and effective manner.
Liquidity refers to an organization's ability to meet its financial obligations… #
Related terms include cash flow management