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FTM E-Newsletter for November 2020

Upcoming Live Webinars: December 23-FTM Nonprofit Forum-Developing Effective Dashboards and Key Performance Indicators; December 16 & 18-Nonprofit Finance Certificate-Effective Financial Management and Leadership
Do you have a dashboard and know what your key performance indicators (KPI’s) are for your organization?  Please bring your questions so we can have a candid conversation regarding dashboards and KPI’s.
We will cover the critical aspects of Effective Dashboards and Key Performance Indicators including:
 
Nonprofits are complex organizations that are built around mission and outcomes, which must be supported by the right revenue and expense models.
 
Dashboards are one way to simply communicate and give an overview of the organization by using a graphical summary of important information. It is an easy way for decision-makers to see where and whether the organization is on the planned financial path, and additionally can be used with funders and stakeholders to transparently show progress towards desired goals.
But a dashboard without metrics is useless to the organization, it is important to develop the associated metrics and constantly review to ensure you are measuring success for the organization.

A properly designed dashboard allows a nonprofit to monitor its effectiveness as evidenced by the financial health along with the impact of the programs and services provided.  Board and staff should develop strategy and goals to create dashboards with focused conversation and collaboration.
When you select the dashboard elements, you should understand the data you will track and how that data will influence decision making.  Questions to ask include: Are the metrics for the organization or function? Is the tool for the board, staff, or funders?
Detailed Agenda:
11:30 to 12:30-Developing Effective Dashboards and Key Performance Indicators
12:30 to 12:50-MIP User Group-MIP Cloud Dashboard Review and MIP Charts and Graphs
12:50 to 1:00-FTM Updates and Question and Answer session

The webinar will help Nonprofit Leaders, Treasurers, Executive Directors, Finance Directors, and Finance Staff.
We look forward to seeing you at an upcoming Nonprofit Forum and MIP User Group Meeting.

We also provide the following financial management training each month as follows: 


Nonprofit Finance Certificate-Effective Financial Management & Leadership(Two Days)
  Day 1-focus on the essential financial functions of your finance dept-FMI or register
  Day 2-focus on financial leadership responsibilities and governance-FMI or register
Developing an effective dashboard and key performance indicators
Developing an effective dashboard and key performance indicators
By Jim Simpson, CPA and director, Financial Technologies & Management
Nonprofits are complex organizations that are built around mission and outcomes, which must be supported by the right revenue and expense models.
Dashboards are one way to simply communicate and give an overview of the organization by using a graphical summary of important information. It is an easy way for decision-makers to see where and whether the organization is on the planned financial path, and additionally can be used with funders and stakeholders to transparently show progress towards desired goals.

But a dashboard without metrics is useless to the organization, it is important to develop the associated metrics and constantly review to ensure you are actually measuring success for the organization.
In order to get started, focus on the most important part of the process, which is to define the key drivers and metrics while focusing on the most pressing issues to start. This will help you start the process of developing your organization’s key performance indicators and the related dashboards to move your organization towards data driven decision-making.

The full article will review discuss the essential steps to developing a dashboard and your key performance indicators.

Click on the orange button below for the full article.
Analyzing Financial Information Using Ratios
Analyzing Financial Information Using Ratios    
By Jim Simpson, CPA and director, Financial Technologies & Management
Nonprofit leaders seeking to understand their organization’s financial situation usually start by reviewing the financial reports. Understanding the financial information is the building block of any financial discussion. Beyond understanding the reports, much can be learned from analysis of the information and interpretation of what it is telling you. The basic analysis includes comparing financial reports to a benchmark such as the budget or the financial report from the previous year. One essential question is: does this information match our expectations?
For a more technical financial analysis, ratios can be used to deepen understanding and interpretation. Financial ratios are an established tool for businesses and nonprofits. While there are dozens of ratios that can be calculated, most nonprofits can use a handful of them to learn more about their financial condition. This document provides a description and calculation of fourteen ratios, including a mix of income statement and balance sheet ratios. Individual nonprofits must decide for themselves which calculations are valuable.

Beyond understanding reports, much can be learned from analysis of the information and interpretation of what it is telling you. This tool provides the description and calculation of 14 ratios, including a mix of balance sheet and income statement ratios. Once familiar with these ratios, you can use the Ratio Calculation Worksheet included in the full article to get started.
Click on the orange button below for the full article.
Top Indicators of Nonprofit Financial Health
Top Indicators of Nonprofit Financial Health
By Jim Simpson, CPA and director, Financial Technologies & Management
 
Nonprofit leaders have a difficult mandate to constantly balance money and mission, while collecting and sharing data on social and financial performance. With limited finance staff and multiple sources of financial information, it’s no wonder these leaders and their supporters often struggle to tell a clear, compelling financial story that makes sense of all the data.
How can nonprofit executives, funders, and advisors identify what matters most when examining finances? What are some trends and indicators that can guide us through an abundance of data and help assess true financial health?
Not all financial indicators are created equal. You can find the data for these metrics on historical-looking documents such as audited financial statements and Forms 990, as well as on forward-looking internal budgets and projections. 

We suggest the following short list of financial health metrics.  revenue reliability, consistent surpluses, full costs coverage, appropriate liquidity, ability to manage debt, and ability to steward facilities.   

The full article will review these top indicators of nonprofit financial health in more detail.
Click on the orange button below for more.
FTM MIP Software Advisory Services, MIP Training, MIP Cloud, & Support
MIP Product Release is ready for download
MIP Fund Accounting Version 2020.3 will be released soon and will be required to produce the year end tax forms.  The IRS launches Form 1099-NEC for 2020 replacing 1099-MISC for contractors.  Click here for full blog article on Form 1099-NEC

FTM MIP Software Advisory Services
FTM is your local business partner to help you with all your MIP software needs so please check out our MIP services page and contact us for help.

FTM MIP Training Schedule-Please review click on the live webcast class listed below.  If you would prefer we provide customized courses at your location, please contact us to develop a customized training program using your database.

FAC261-MIP Fund Accounting 1099 Processing-January 7, 2021 1:00-3:00 EST
FAC260-MIP Fund Accounting W-2 Processing-January 7, 2021 3:00-5:00 EST

MIP Cloud Modern UI Class Promo

MIP Cloud customers get a 100% discount on all MIP Cloud modern UI Live Webcasts and Self-Paced training courses using promo code MODERNUI2020 at checkout.   This discount is available through December 31, 2020.   Cancellation requirements and considerations apply.

MIP Classic UI Class Promo

MIP Fund Accounting Attend In-Person Workshops will not be offered through December, 2020.  MIP Fund Accounting Classic UI Live Webcasts and Self-Paced training courses will be offered in their place.

MIP Lunch and Learn Classes

Lunch and Learn courses are short, 1 hour, MIP courses on specific topics.   They include Community Brands Xperience Conference sessions and special topics.  The Lunch and Learn are listed in the live webcast of the MIP Fund Accounting Courses on Abila University.

MIP Training Pass

An MIP Training Pass will again be available for customers this summer.  The training pass applies to single-day regularly scheduled MIP Fund Accounting Live Webcast and Self-Paced classic user interface classes available through Abila University.  Offer does not include year-end classes, multi-day Live Webcast classes, or MIP modern user interface classes (see discount below).  The pass will be available for purchase until December 31, 2020.  The pass period is 12 months.  Pricing options:   Individual MIP Training Pass for $1,399 for 15 classes; Organization MIP Training Pass for $2,599 with up to 5 users for 30 classes.

Current Promotions

20% off MIP Checks and Forms-
use promo code 20XABL59 through December 30.   Call 1-800-994-1351 or visit mipchecks.com to place your order.

MIP Cloud
Even if you haven’t joined the group of cloud adopters, you’ve probably considered it, researched it, or discussed it with your peers. If your organization is ready for a deep dive, now is a good time to check out the newly improved MIP Cloud – request a presentation by contacting us
Please contact us for 3 month free with 15 month agreement that is available through December 23, 2020 to migrate your on-premise license to the MIP Cloud.

MIP Support
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