Instructional Objectives for this activity:
Identify specific financial strategies related to not-for-profits
Not-for-profit financial management presents a unique set of challenges that differentiate it from typical corporate financial management. Since not-for-profits do not issue stock, they have to follow different paths for raising and maintaining capital, and different methods for maintaining viability in the business world.
Please respond to all of the following prompts in the class discussion section of your online course:
In your own words explain what fund capital is. How does it differ from equity capital?
Why would a not-for-profit be concerned with managing fund capital?
What role would a financial manager play in working with fund capital? Explain, giving at least two specific examples.
Describe the net present social value model for making capital budgeting decisions. Giving at least one specific example, explain how social value might be measured.
What role does the NPV model play in not-for-profit management? Explain your reasoning, giving examples as necessary.