Financial Management for CBOs and Small NGOs

Abstract

The various engagement with owners, managers and key stakeholders of Community-Based Organisations (CBOs), Faith-Based Organisations (FBOs) and other small non-profit organisations had revealed capacity constraints in the areas of basic administration and financial management.  It was this realisation that led to the development of this manual on financial management as a starting point of building capacities on basic accounting procedures. This manual is specifically designed to assist officers of organisations with basic accounting skills in managing the finances of such organisations. Often the trouble of having to manage funds received by these organisations and the corresponding requirements to submit financial reports of these funds has created a huge accountability challenge for these organisations and their donors or stakeholders. The resultant effect is dwindling funding in some instances loss of funding for these organisations. The manual is designed in such a way as to be easily read, worked and understood by people with no formal knowledge of accounting at all.  It addresses the challenges normally encountered in the day-to-day financial operations of these organisations. It looks specifically at key areas as: Overview of Basic Accounting Procedures; Chart of Accounts; Some Basic Forms that should be Used; The Analytical Cashbook; Income and Expenditure Statement; Frequently Asked Questions. It has been observed that the manual, if properly used, would go a long way to reduce the challenges faced in accounting for funds and also deal with financial misappropriation in these organisations. It is highly recommended for use as a training guide for non-financial starters.