Time Schedule:
Leslie Breitner
PB AF 553
Seattle Campus
Provides an understanding of the financial framework on nonprofit organizations. Focuses on the financial principles of management of nonprofits, with an emphasis on financial reporting, strategic financial planning, managerial decision-making and budgeting. Offered: A.
Class description
This course is designed to provide students with an understanding of the financial framework of nonprofit organizations. The course will focus on the financial principles and management of nonprofits, with an emphasis on financial reporting, strategic financial planning, managerial decision-making, and budgeting. The course will illustrate financial concepts using real world examples from case studies. While a prerequisite for this course is the core financial management and budgeting course at the Evans School (or equivalent in another school), this is not primarily a course in accounting. Rather, its focus is on management control concepts and problems in nonprofit organizations. Historically, nonprofit organizations survived on the strength of their missions and their ability to attract increasing amounts of public and private support for their activities. More recently, managers and professionals have recognized a need for stronger management skills, among them financial management and management control. Prerequisite: 522 and/or background in basics of financial accounting.
Student learning goals
Analyze and interpret the three required financial statements for nonprofit organizations: the balance sheet, the statement of activities and the statement of cash flows.
Demonstrate knowledge about the fundamental financial management issues: profitability, liquidity, asset management and long-term solvency.
Understand the role of full cost information and how to derive the full cost of providing a service.
Understand cost behavior and how to use cost information in managerial decision-making.
Appreciate the concept of "different costs for different purposes"; differential cost decisions use different cost data than pricing decisions.
General method of instruction
The course will be taught primarily by the case method of instruction, supplemented by readings and occasional short lectures on selected topics. As you may know, the case method works extremely well when both students and the instructor are well prepared. Otherwise, it is an extremely ineffective pedagogical tool. For this reason, you will be expected not only to read the assigned material for each class session, but also to analyze the cases fully as well. Often, this is best done in group work. I will provide templates for use when it is necessary to use spreadsheets and I will post suggested solutions to all assigned work on the course website.
Recommended preparation
Some background in financial accounting is required for the course. PbAf522, the core financial management and budgeting course, serves as the prerequisite. PLEASE DO NOT REGISTER FOR THE COURSE IF YOU HAVE NOT YET TAKEN 522 OR THE BUSINESS SCHOOL EQUIVALENT INTRODUCTORY COURSE.
Class assignments and grading
In addition to regular preparation of cases for discussion each week, there will be three written assignments paced throughout the course. The final assignment is in lieu of a traditional final exam.
The case method relies on both preparation and presentation of analysis. Hence, student performance will be rated on the quality of contributions to the case discussions as well as on the submission of the written assignments. Class contributions can come in a variety of ways: (a) a good question about the material; (b) undertaking key analyses (as opposed to restating factual points in the case); (c) helping to move the discussion ahead; or (d) making comments that bridge discussion points in a case analysis, thereby integrating the discussion and helping to make it more coherent. The weighting schema for the course is: Written assignments 75% Class contribution 25%
