Resource Management and Financial Literacy

Resource management

Sport and recreation organizations achieve their strategic goals and deliver their programs and services through the efficient and effective development and application of the following resources:

  1. Human (volunteers and staff),

  2. Physical (facilities and equipment), and

  3. Financial resources.

Responsible management of all resources is perhaps the most important factor that separates organizations that are successful from those that are either less successful, or those that no longer exist. And it is most important to understand the accounting and managing of financial resources, as this will often dictate a clubs capacity to manage human, physical and other resources.


Financial Literacy

It is very important that the staff leadership and all board members understand what the following documents and reports represent and how to read them with at least a minimal degree of comfort and literacy:

  • Annual Budget (operating – not necessarily capital)

  • Profit and Loss Report (Year-to-Date and YTD Budget-to-Actual and Cash Flow)

  • Balance Sheet

If these are a mystery to any club leadership it is recommended that you have your treasurer or a local CPA give a brief presentation about these three key documents/reports. From there it is important that your finance committee and/or treasurer present these reports regularly so that all leadership gains increasing comfort and understanding.

Here are some helpful tools:

A budgeting guide for small nonprofit organizations:

A 10-step annual budgeting checklist:

A great nine-page PDF “How to Talk About Finances So Non-Financial Folks Will Listen”

For a comprehensive guide see: Financial Management for Nonprofit Organizations: Policies and Practices by John Zeitlow, Jo Ann Hankin and Alan G. Seidner

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