CHAPTER TWENTY-ONETOOLS AND TECHNIQUES OF NONPROFIT FINANCIAL MANAGEMENT*
* The author thanks Brianna Bingham, Sue A. Dahlkamp, Chris Einolf, and Francie Ostrower for many useful comments on earlier drafts. Some equations in this chapter may not apply to endowed organizations (that is, those having an investment portfolio that exceeds spending on operations). For more on these cases, see Bowman (2011).
Recessions and bad luck do not cause financial crises; incompetence and poor planning do. Recessions and bad luck merely expose weaknesses in financial management. Survival in bad times requires preparation in good times. Long run success requires planning and disciplined execution. This chapter introduces tools and techniques ...