Monetary management in non-profit organizations

Monetary Management

The monetary function of management

Even as the manager at a non-profit organization, one cannot be careless about monetary management. In fact, as the main means of making money for a non-profit organization are through fundraising as well as student registration fees (which are fairly modest, given the non-profit structure of the entity I work for) a manager must be doubly careful not to exceed an allocated budget. Despite the tax-exempt status of some nonprofit entities, this does not mean that nonprofits can be careless when sources of funding are unstable, and may fluctuate from semester to semester, based on student interest.

Requiring workers to justify expenses is one of the most difficult and unpopular forms of monetary management. This can foster unhealthy competition within an otherwise cohesive and friendly organization. (Sutton, 2003) However, a good manager must ensure that workers do not go over budget, or use allocated expenses frivolously for their own personal enjoyment. One of the advantages of working with a company that does so much of its business online, however, is that substantial expenses are saved by the lack of a need for a wasteful paper array of paper resources that world requires extensive storage, shipping, and ordering of forms, computer ink, and other common office supplies. Although some of these things are necessary, they are not nearly as ubiquitous as in some other firms.