Nonprofit Financial Management (PMAP 8261)
Fall 2014
Thursday 7:15 – 9:45pm, Sparks 301
Georgia State University
Instructor: Elizabeth A.M. Searing
Email: [email protected]
Office Hours: Tuesday 11:00am - 1:00pm, or by appointment
Office Location: Andrew Young Building, Third Floor, Cube 346M
Prerequisites: None, though a working knowledge of Excel will be necessary to complete some homework.
Course Summary: This course is designed to teach students how to use financial information to make
decisions in nonprofit organizations. The first half of the course is devoted to financial accounting, focusing
on understanding and using the information found in financial statements. The second half of the course
focuses on using principles of financial management to make operating and capital budgeting decisions and
to analyze long-term financial options.
Learning Objectives: The goal of this course is to equip graduates with an understanding of the tools and
techniques involved in the financial management of a nonprofit organization. After completing this course,
students should be able to:

Read, comprehend, and evaluate financial statements;

Understand and complete a 990 tax form;

Evaluate internal control structures and their impact on financial statements;

Prepare a budget and cash flow projection;

Apply variance analysis to cash flow projections;

Evaluate the overall financial health of an organization;

Evaluate projects based on cost-benefit analysis; and

Understand how organizational characteristics and external sources affect financial management
Classroom Expectations: Most classes will be split into lecture and interactive discussions and activities.
Therefore, preparation for the day’s class in terms of readings and exercises will be essential. All students
should come to each class prepared to discuss issues raised in the assigned readings for that week and/or
Nonprofit Financial Management
Searing, Fall 2014
to explain their solutions to assigned problems. Use of iPhones, cell phones, etc. is only allowed on breaks.
If you are using your computer, I reserve the right to see your screen or ask you to turn it off.
Text/Materials: There are two required textbooks, which will be supplemented by readings both online
and in class exercises. I have not worked with the previous editions of the Finkler text and will NOT help
you make conversions between readings and assignments from this edition into any other. Buy an earlier
edition at your peril.
•
Finkler, Steven A., Purtell, Robert M., Calabrese, Thad D., and Smith, Daniel L. (2013) Financial
Management for Public, Health, and Not-for-Profit Organizations (4th ed). Prentice Hall
(Pearson): Upper Saddle River, New Jersey.
•
Bowman, Woods. (2011) Finance Fundamentals for Nonprofits, with Website: Building Capacity
and Sustainability. Wiley: Hoboken, New Jersey.
Academic Honesty: Students are adults responsible for their own choices and conduct. GSU requires that
each student be honest, submit products of their own effort, and engage in honorable and ethical academic
behavior; details can be found at http://codeofconduct.gsu.edu/.
Grades: Grades will be assigned in the following manner:
Homework
24%
Midterm
16%
Project 1
15%
Project 2
15%
Final Exam
20%
Participation
10%
Homework (24%) must be submitted electronically before the beginning of class on the date listed in the
syllabus. Excel templates are provided in Desire2Learn and should be used for all assigned problems, when
applicable. Please be sure to start your homework with enough time to handle any issues you may
encounter; I try to answer email within 24 hours, but that means questions about homework sent the night
before it’s due may not be seen. Please submit your assignments through Desire2Learn.
The midterm (16%) will cover the basics of financial statements and managerial accounting that are the
focus of the first section of the class.
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Nonprofit Financial Management
Searing, Fall 2014
Project 1 – Nonprofit Scandal (15%)
•
Identify a nonprofit scandal based on publicly available information
•
Explain the facts of the scandal including a description of the organization(s) involved, a description
of the scandal, how it was discovered, and the outcome.
•
Explain what internal controls failed (or were not present) that allowed/contributed to the scandal
•
As your final section, include a recommendation to the board of the nonprofit as if you were a
consultant brought in following the scandal.
•
The paper should be between 3-4 double-spaced pages in length, plus a formal references section.
Credit will be based on completeness of assessment and discussion.
Project 2 – Organizational Comparison and Analysis (15%)
•
•
Select a public charity – obtain the last three years of Form 990s and financial statements
o
summary of the nonprofit’s mission and organizational information (½ page)
o
executive overview of the nonprofit’s financial situation (1 page)
o
Identify trends of the selected charity based on the three year period ( ½ - 1 page)
o
Identify three areas of strength and three of weakness. Explain why you chose these areas
and how you would protect or remedy them (2-3 pages)
Compare most recent year to another public charity
o
Compare and contrast 1) revenue sources, 2) expense categories and drivers, and 3)
business risks based on 1) and 2) and the disclosure information (3-4 pages)
o
Explain how financial management strategies would differ based on the revenue sources,
expenses and business risks (1-2 pages)

A full works cited

Credit will be based on completeness of assessment and discussion and as compared to other
students’ projects.
The final exam (20%) will cover the material from the second half of the semester (80% of the total final
exam points) and the first half of the semester (20% of the final exam points).
The participation grade is based on class attendance and participation.
The final grade calculation will be as follows. There is no extra credit.
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Nonprofit Financial Management
Searing, Fall 2014
A+
97 – 100
4.3
A
93 – 96
4.0
A-
90 – 92
3.7
B+
87 – 89
3.3
B
83 – 86
3.0
B-
80 – 82
2.7
C+
77 – 79
2.3
C
73 – 76
2.0
C-
65 – 72
1.7
D
60 – 64
1.0
F
< 60
0.0
Late and Make-up Policy: Homework assignments are due at the beginning of class; no late assignments
will be accepted since answers may be discussed in class. There are no make-up homework assignments. A
make-up exam for the midterm or the final is available with a documented emergency. A documented
emergency situation is severe illness (with accompanying paperwork from a physician), the death of an
immediate family member, or situations of similar magnitude. All emergencies must have documentation,
and the treatment of each is totally within the professor’s discretion.
Disabilities: Students who need accommodation for a disability should submit their signed Accommodation
Plan from the Office of Disability Services.
Attendance Policy: There is no attendance requirement, but a large number of absences will affect your
understanding of the material, your participation grade, and the likelihood that you are turning in your
assignments on time. Please let me know if you are unable to attend class so that I can adjust group
activities, if need be. Per GSU policy, all instructors must give a WF to all students who are on the roll but
no longer attending class past the semester midpoint.
Course Evaluations: Your honest assessment of this course is an important source of feedback for both me
and the department. Please take the time to fill out an online course evaluation at the end of the semester.
**For Doctoral Students Only: If you are a doctoral student in this course, please let me know.
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Nonprofit Financial Management
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Tentative Course Schedule
Week
Class Topic
Assignment Due (at beginning of class)
Week 1
(Aug. 28th)
Introduction to Financial Management
Read Chap. 1 & 1A (Finkler)
Bowman Chap 1
Week 2
(Sept. 4th)
Financial Statements
Read Chap 10, 11, 11-E, 12 (Finkler)
Bowman Chap 2
HWK 1 DUE
Week 3
(Sept. 11th)
Financial Analysis
Read Chap 15 & 16 (Finkler)
HWK 2 DUE
Week 4
(Sept. 18th)
Nonprofit GAAP and Form 990
Read Chap 12-A (Finkler)
Bowman Chap 5
HWK 3 DUE
Week 5
(Sept. 25th)
Managerial Accounting
Read Chap 4 & 4-A (Finkler)
HWK 4 DUE
Week 6
(Oct. 2nd)
Managerial Accounting & Review
Chap 6 Bowman
HWK 5 DUE
Week 7
(Oct. 9th)
MIDTERM
Week 8
(Oct. 16th)
Risk Management and Internal Controls
Read Chap 8 p.286-293 (Finkler)
Bowman Chap 11
Week 9
(Oct. 23rd)
Budgeting and Forecasting
Read Chap 2, 3, 3-A, 3-B (Finkler)
Bowman Chap 4
DUE: Project 1
Week 10
(Oct. 30th)
Capital Budgeting, Time Value of Money,
and Internal Rate of Return
Read Chap 5, 5-A, 5-B (Finkler)
HWK 6 DUE
Week 11
(Nov. 6th)
Reserves and Financing
(Guest Lecturer)
Read Chap 6, 7, 7-B (Finkler)
HWK 7 DUE
Variance Analysis and Financial Health
Read Chap. 8 up to p.283 (Finkler);
Bowman Chap 10
HWK 8 DUE
Week 12
(Nov. 13th)
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Nonprofit Financial Management
Week 13
(Nov. 20th)
Class not meeting
Searing, Fall 2014
Work on Project 2 and Begin Reviewing
for the Final
Nov. 23rd-29th Thanksgiving Holiday
Week 14
(Dec. 4th)
Review for the Final
Thurs.,
Dec. 11th
7:00-9:30p
FINAL EXAM
DUE: Project 2
This schedule is a tentative outline for the course; deviations may be necessary.
The last day to withdraw and receive a “W” is October 14th, 2014.
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