encumbrancesYour are here: fundsforngos.

org » Featured Articles » How to manage

Accounts & Finances in NGOs – A Manual for developing NGO Financial
Management Policy

How to manage Accounts & Finances in

NGOs – A Manual for developing NGO
Financial Management Policy
296
SHARES
ShareTweetEmail
According to the local laws and regulations of most countries, all registered NGOs are
required to maintain a system for recording and submitting all types of financial
transactions made by them for the purposes of implementing projects and running
their organization. Since finances are a crucial part of organizational management, it is
always a better idea to maintain a ‘Financial Policy’ for following procedures to keep the
accounting system effective, transparent and easily manageable.

Following a systematic procedure and maintaining a policy on managing of NGO finances

is a strong indicator of the good health of an organization. Even donor agencies would be
most happy to render immediate funding support to such NGOs which have systematic
policies in place for effective financial management. Operational or administrative
manuals on conducting day-to-day financial transactions can be strong tools to
demonstrate the good governance, transparency and systematic management of an
NGO. Besides, such systems also enable in keeping a track of NGO expenditures.

AdTop Grants, Donors and Resources on How to Apply

Premium Membership offers the perfect platform where you can
quickly learn about top grants and donors that can fund your projects.
Powerful tools such as Grant Search, Map, Calendar and Custom
Funding Alerts will make your work easy. Additionally, learn how to
apply with our resources such as Sample Proposals and
Downloadable Ebooks Learn more or Join instantly for $49.99/year
(50% Discount)

But how can NGOs develop such manual for accounting and financial management?
What are the various procedures for managing finances in an NGO? What are different
types of systems to be followed for accounts management in NGOs? Is there a sample
policy on NGO financial management?

We are providing a detailed explanation of how financial systems work in NGOs and how
NGOs can make use of this guidance material to develop their own financial policy for
effective organizational management, fulfillment of local statutory requirements and better
mobilization of funding for the organization.