Much has been written about capacity building but little on how to use financial management to build capacity. Donors are increasingly requiring their non-profit beneficiaries to have sound financial systems before they will provide funds. This guide provides an overview of financial management and the practical tools that can help build the financial capacity of non-profit organizations.

Using case studies to demonstrate good practice, this guide will offer practical advice in how to work with a partner organization to build its financial capacity. It will also detail tools and techniques for using financial skills to improve organizational and program management.

The guide is intended for managers and trustees of non-profit organizations, providing tools and techniques for them to build their own financial system, and for those assessing another organization’s financial capacity.

Table of Contents:

Acknowledgements; Introduction; PART I LLINKING CAPACITY-BUILDING AND FINANCE: 1) Capacity-Building and Finance; 2) Assessing Financial Management Capacity; PART II BUILDING FINANCIAL MANAGEMENT CAPACITY: 3) Planning and Budgeting; 4) Accounts Record-Keeping; 5) Financial Reporting; 6) Financial Controls; 7) External Audit; 8) Organisational Aspects of Financial Management; PART III MOVING TOWARDS SUSTAINABILITY: 9) Reserves; 10) Core Costs; PART IV TOOLS FOR BUILDING FINANCIAL MANAGEMENT CAPACITY: 11) ‘Toolkit’ for Financial Management Capacity-Building; 12) Training for Financial Management Capacity-Building; Appendix A: Minimum Financial Requirements for Growing Organisations; Appendix B: Review of Financial Systems; Notes; Glossary; Websites; Further reading; Index.