The term ‘not-for-profit’ (NFP) can be misleading, as it does not mean that the organisation makes no profit. Profit is still an objective of these type of organisations.
NFP organisations are an essential part of every community. They exist to provide benefits to members of the community.
Accolade Accounting assists many not-for-profit organisations such as local sports clubs, welfare organisations, and Aboriginal Corporations.
Operations are based on the receipt of grants, donations, fundraising or receipts from members as the principal income source. In some instances, NFPOs supplement this income with trading activities.
Although these organisations operate on a not-for-profit basis, appropriate financial management will ensure that there are adequate resources to meet their objectives, remain solvent and continue to support the community.
Although profitability is not the core purpose of an NFPO, it is necessary to ensure that the NFPO is sustainable, properly capitalised and funded. It would be fair to say that NFPOs need to ensure they have adequate cash flow to support their operations over the duration of their lives and contribute to achieving their goals.
Accolade Accounting does assist many Not-for-Profit Organisations in sound financial management practices to make certain that the social objectives of the community organisation are met.
Contact us, should you wish to have a free discussion about your not-for-profit organisation and see how we can assist you.