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Figure 9.9, page 358 in the 5th edition and page 295 in the 4th edition, has a formula error in the right most total column. The total for the line named “Variance” is $40,470. The “Reserves” line directly below is $40,470. There was an error in the original spreadsheet used to create Fig. 9.9. There should be NO number in the “Balance” cell  on the bottom right of the Cash Flow Projections. The formula error added the variance and reserves and that created an incorrect “Balance” of $80,940.

The text on page 359 in the 5th edition and page 294 in the 4th edition should read:

“Even though the company is projecting ending the season with a $40,470 reserve (see Reserves row in Fig. 9.9), there will be 4 months of the season where there is a negative cash flow.”


Presentation – Ch 9 – Controls, Operations, and Budgeting (PDF)

Video Links:

Quick Overview of Management Control Systems (4:20)

Management Control (23:44)

What is an Information System? (2:58)

CRM Software Applications for Nonprofits (promotional video) (1:38)

ZohoCRM – A Really Great FREE CRM (promotional video) (7:42)

Web Links:

Free versions of task management, team work, or project management products:

Asana www.asana.com

Trello www.trello.com

Azendoo www.azendoo.com

Evernote www.evernote.com

Firms specializing in software for not-for-profit or arts and culture organizations.









 Downloadable Excel Spreadsheets:

Cash Flow Template from the Nonprofit Assistance Fund

Cash Flow Template (from Ch 9)


Other Resources:

  • Model Policies and Procedures for Not-for-Profit Organizations, 4th edition, Edwards J. McMillian, (Hoboken, NJ, John Wiley & Sons, Inc. 2008).
  • Not-for-Profit Budgeting and Financial Management, 4th edition, Edward J. McMillian, (Hoboken, NJ, John Wiley & Sons, 2010).
  • Preventing Fraud in Nonprofit Organizations, Edwards J. McMillian, (Hoboken, NJ, John Wiley & Sons, Inc. 2006).
  • The Budget-Building Book for Nonprofits, by Murray Dropkin and Bill LaTouche, 2nd edition (San Francisco: Jossey-Bass, 2007).
  • The Cash Flow Management Book for Nonprofits, by Murray Dropkin and Allyson Hayden (San Francisco: Jossey-Bass, 2001).
  • Budgeting & Financial Management for Nonprofit Organizations – Using Money to Drive Mission Success, Lynne A. Weikart, Greg G. Chen, Ed Sermier, CQ Press and Imprint of SAGE, Thousand Oaks, CA, 2013.