Few functions are more vital to a successful Covenant Partner than developing and maintaining sound bookkeeping and financial management processes and systems. As nonprofits have no profit line against which to manage their finances they are often negligent in monitoring these functions. Following sound practices, however, is more than good business; it is a matter of stewardship. By carefully tracking income and expense a CP is better able to maximize the funds available to it. Considerations include:
Program expenses should equal not less than 80% of total expenses. Donors and the IRS watch program expense ratios closely, and the accounting system should allow the CP to easily calculate them.
Helpful hint: If you want to search for a specific topic in the Operations Manual, search for the word “manual” followed by a “+” sign and then a specific term. For example, if you want to know more about hammers, you would search for “manual+hammers”.