What kind of financial system do i need for fundraising?

Hi Chris,

Thanks for your response. I am referring to a non-profit basketball tournament that would help raise awareness for people who suffer from multiple sclerosis or individuals who are fighting cancer. I want to raise money that would go towards research or basic improvements to current facilities. I want to start a basic financial system that would help fund and support this program. How should I go about tackling this opportunity? Any tips or pointers would be greatly appreciated.

Thanks,
Trevor
Focus Community Manager

Trevor, thanks for the additional information. If I understand you correctly, you are just starting this non-profit or it was recently formed. If I'm accurate then all you need is a simple way of tracking the donations that come in and expenses that go out.

I have two suggestions:

1. If the tournament is relatively small, or the number of donors is relatively small, then a simple Excel spreadsheet should work well for you.

2. If the tournament is going to be large, either in terms of participants and/or donors then I would suggest investing $100 +/- in a basic version of Quickbooks. It takes a little longer to set up. But once it's up. It's there forever. You will be able to use it year after year with ease.

I hope I have addressed your question. If I can be of any further assistance, just shout.

Chris

Hello Trevor,

I have recently become aware of a charitable foundation, in the cruise industry, that could assist you in raising funds for your MS awareness cause. If you already have a basketball team in place, then, may I suggest having the team hold a short tournament on a cruise line ship, like Carnival. which is known as the "fun" ship. Carnival, has a dynamic fund-raising system where they will match the funds in correlation to the cabin commissions you will have made, from booking a group cruise. But, you must be a certified travel agent to do this. There is also a cruise line that caters to disabled persons, as well. I am going to take advantage of this, because, I am disabled from MS, Fibromyalgia, rheumatoid arthritis, and bursitis, and I am only 44 years old. I truly feel that if you were to go this route, you could generate a great deal of funding for your cause.

For example: You book a cruise for a short basketball tournament, say 72 cabins get booked, you're looking at about $50k in commissions, just from that one cruise. Book cruises to coincide with calendar awareness events and you will do well, because, there are many who would be interested in your personal interest and kindness in them, and, that you made their challenging life, enjoyable, something that many would participate in, including myself.

Trevor, if you are not able to take on this endeavor, I would be honored to help you, since I am a certified travel agent, and, have MS, and would give all proceeds to you, this would be my contribution for your cause. How does this sound to you? Here is where you can reach me: http://eleganthoneymoons.traverustravelnetwork.com

While this question was initially asked by Trevor with a focus on a nonprofit, the question itself is much broader and can also be focused on the startup or more mature firm that needs funding, either debt or equity, and as a result must supply financial statements to investors and lenders.

In my consulting practice among early stage technology and life sciences firms, I find there is little recognition of the value or need for financial statements or the accounting system and controls that are needed to support these processes. However regardless of whether the firm is raising debt or equity, there is typically a due diligence process and among the things the firm must provide is financial statements. The fine print in all documents will require that the statements be accurate, prepared in accordance with GAAP and up to date.

For most small companies, a program like QuickBooks will be an adequate platform for preparing statements. However just because you spend the $100 or so needed for this product does not give you either GAAP statements or accurate statements. So if you do not have accounting training, don't plan on preparing your own statements. You will not understand the basics of accrual accounting, proper assignment of general ledger accounts, non cash items such as depreciation and the like. You may not be properly reconciling bank statements which may be adding to the risk and inaccuracy in your statements. If you hire a bookkeeping service to assist you with statements, determine that a CPA or other accounting professional will review the statements for compliance.

A final warning, financial statements provided to lenders can subject you to liability such as bank fraud if they are wrong and you wind up defaulting on the loan. Inaccurate statements can also cause an investor to have rights under an investment agreement to pull back amounts provided. Don't think that these institutions won't look for reasons you failed and the financial statements can provide a convenient way to make life miserable for you.