GlobeMed Finances Handbook by GlobeMed

ÂŠ 2013 GlobeMed

finances handbook GlobeMed

Finance handbook Table of Contents VISION, MISSION, CORE VALUES.......................................................................................1 FINANCE PURPOSE & GOALS............................................................................................2 ROLES & RESPONSIBILITIES...............................................................................................3 KEY PLAYERS........................................................................................................................4 KEY IDEAS.............................................................................................................................5 BANK ACCOUNT..................................................................................................................6 NATIONAL OFFICE PROCEDURES..................................................................................7-8 BUDGETING...................................................................................................................9-10 PROJECTIONS....................................................................................................................11 FINANCIAL TRANSPARENCY............................................................................................12 SAMPLE TIMELINE.............................................................................................................13 RESOURCES: SQUARE.......................................................................................................14 RESOURCES: SAMPLE EMAILS.........................................................................................15 RESOURCES: SPREADSHEET TEMPLATE.........................................................................16

Finance handbook

GlobeMed Vision, Mission, Theory of Change, Core Values Vision

We envision a world in which health – the ability to not only survive but thrive – is possible for all people.

Theory of Change

We believe that human relationships are at the the core of social change. To allow everyone to live a healthy life, people have to change these broken systems by working together from the inside and outside, locally, nationally and globally. This belief is derived from a framework called reciprocal capacity building. Reciprocal capacity building describes a collaborative relationship in which two or more groups help clarify and address each other’s gaps in achieving goals and aspirations. The relationship facilitates an exchange of resources, such as skills, knowledge, processes and other intangible assets, that strengthen each party’s ability to reach their full potential. Through communication and collaboration, relationships of reciprocal capacity building: 1. Clarify gaps in reaching both parties’ goals and potential 2. Identify the resources and services needed to address both parties’ gaps 3. Facilitate a two-way exchange of needed resources and services to ﬁll both parties’ gaps

Mission

GlobeMed aims to strengthen the movement for global health equity by empowering students and communities to work together to improve the health of people living in poverty around the world.

Core Values

Dig Deep - To cultivate wisdom, we approach ourselves, our communities and the world with openness and curiosity. See Possibility - In all people and situations, we see the ability to learn, connect, grow and contribute to positive change. Grow Together - We accompany each other, cultivating a global community that inspires, challenges, and sustains us. Be Bold - We put mission in front of ego and fear, doing what it takes to make the change the world needs. Stay Authentic - We let ourselves be known, remaining grounded and humble even as we aim for the boldest vision.

Finance handbook

2 Purpose & Goals

Purpose

GlobeMed differs from other organizations for many reasons -- one of which is that each GlobeMed chapter essentially functions as a student-run non-profit on their respective campuses. Given our investment in our model and our peers, we take our work seriously. Financial transparency and efficiency are vital to our goals. In order to fulfill our commitment to our partner and to reach our chapter’s full potential, maintaining financial integrity and accountability is crucial. If we aim to create lasting, sustainable change by harnessing the passion and resources of university students to improve health around the world, then we must create the systems necessary to ensure that all of your efforts are being transferred to your partner organization. This handbook has been designed to help you understand your role on the Finances team, share advice and best practices from across the network, and provide knowledge about the financial and legal relationships between your chapter, your university, and the National Office.

Goals

1. Maintain accessible, transparent financial systems that track your chapter’s financial flows. By creating and maintaining financial systems / tools (ex. creation and maintenance of budgets for each individual event), your executive board and chapter members will better be able to track progress over the year and be sure that your systems are run with utmost integrity. 2. Share financial information with chapter members, your partner organization, the National Office, and other donors and supporters Financial transparency will allow your chapter’s partners and supporters to hold you accountable for the funds you raise. The more they know about how your funds are being raised and used, the more they will trust the work that you are doing. With chapter members and other members of the executive board, budgets can inform content flexibility, but at the same time, content can drive the scope of a budget. This means that collaboration between finances and each individual team is key so decisions are informed from both ends.

Finance handbook

3 Finances: Communication Roles & Responsibilities Guidelines

Director of Finances

As the Director of Finances you play an incredibly pivotal role within your chapter. Finances relate to every aspect of a GlobeMed chapter. Your chapter and partner are relying on you to carefully manage the finances, make sure that your procedures follow university policy, and contribute to a successful year for your project. As Director of Finances, you will coordinate a small team to be the chapter’s: • Accountant – Track when, where, and why the chapter is spending money on a Google spreadsheet that will be shared with the National Office and with your chapter. Depending on the policies of your university bank account, you may also be in charge of carefully tracking and administering reimbursements (via cash or check) to individuals for their GlobeMed-related expenses. • Financial Advisor – Ensure that the chapter follows all financial policies and guidelines. Between this guide and the instructional materials/processes shared by your university, this should be a piece of cake! • Budget Planner – Creation of a chapter-wide budget is a primary responsibility that relates to each team. Working with your Co-Presidents and Campaign teams, combine your MOU’s budget, the fundraising opportunities of your chapter, and other operational costs into a realistic financial plan for the academic year. • Grant Writer - Take the lead on seeking out grant and funding opportunities for travel, operations and your partner organization. Scoping out the local community and working with your school’s student activities office but also development office can lead you to where local grants and even university funding opportunities exist.

Director of Finances Responsibilities: • Create and maintain financial systems that track when, where, and why the chapter is spending money // keep a detailed record of chapter and campaign expenses and revenue • Provide strategic financial advice to develop annual and event specific budgets & projections • Present financial status to the Executive Board and chapter on a consistent basis; maintain financial transparency • Create financial documents showcasing revenues, expenses, and money sent to partner to share with chapter donors and supporters • Stay in touch with the National Office, University and Partner Organization for information on financial policies including transparency, wiring/transfer guidelines, and fund disbursements • Utilize university resources and funding for operational costs, chapter needs, and travel grants

Finance handbook

4 Key Players

Key Players Co-Presidents – Your Co-presidents have a bird’s-eye-view of the chapter, and with updates on how your chapter is spending and earning money they can make key connections between committees and externally. Campaign Teams – These are your key fundraisers. You will be working with them to plan budgets for events, pay for event expenses, add up your campaign total, and to thank donors. Donors – Donors are essential to your campaign! They’ll want to be kept up to date with the campaign’s progress, understand the impact of every dollar, and they’d especially appreciate a token of gratitude! University – Because you are a student organization, you should be aware of and follow your university’s policies on many financial issues (i.e., getting tax exempt donations, receiving and sending money, etc). Make sure you are familiar with all of your university’s financial policies for student organizations. Partner – Your partner is counting on your chapter to send the money raised through your events by the end of the year, if not sooner. Make sure you are aware of the money transfer timeline outlined in your Memorandum of Understanding (MOU) and any associated wiring processes/fees. National Office – The National Office can provide you with resources to help your chapter’s finances move along more smoothly. We also compile data about all of the chapters to show the overall success of the network, so don’t forget to fill out your Annual Report!

Finance handbook

5 Key Ideas

Key Ideas Good financial systems... • Are an important tool to measure chapter success • Allow you to track expenditures (and often determine whether they are absolutely necessary) • Allow you to budget in unusual circumstances • If you use more than an allocated amount for something, you can re-evaluate your projections • Build institutional knowledge • Use previous years financial documents to make more accurate projections • Carefully track your processes to facilitate smooth transitions for future Directors of Finances • In taking risks with brand new campaigns, project an expected revenue range. Always build for a certain level of uncertainty around a new campaign into your year-round fundraising plan. • Can be managed by anyone with the right tools and focus! Stay on top of your systems! • Keep donations carefully organized • When dealing with cash: • Buy your own cashbox to ensure security • Count all money, and initial/sign • Have a second person count money, initial/sign to ensure accuracy • Be sure to date all financial entries, cash collection, documents, etc. • Retain ALL receipts • Make things easy for your Executive Board members & future Directors of Finances • They may not be familiar with your system, so take some time to teach them. Transitioning is crucial. Some Key Definitions: • Profit: the amount you will be sending to your partner • Revenues - expenses = Net profit • Revenue: the amount you make for the campaign • Expense: the amount you spend for the campaign

Finance handbook

6 Bank Account

Bank Account As you chapter’s Financial Advisor, you will often be working with a bank account - whether its an external bank account (i.e., Bank of America) or a university account. If you find that your university’s bank is difficult to use, you may wish to open an external bank account. NOTE: Each university had a unique set of financial policies. Opening an external bank account may prevent you from receiving tax exemption from your university or prevent you from being an official student group entirely. Be sure to familiarize yourself with the policies in place. How are external banks different than university banks? University Pros: -On campus -Connected to all other services your university provides for Student Groups (funding, meeting space, printing, etc.) -Familiar with student groups’ needs (transition, low balance, etc.)

Cons: -Potentially overcome with bureaucracy -Sometimes don’t oﬀer key services (like wire transfers) -May be diﬃcult to determine how much money you have

External Pros -Less bureaucracy -Easier to determine which services are provided -More likely to provide services like wire transfers

Cons -May lose beneﬁts from university -Don’t have special help for transitioning -May not be used to working with student groups -May charge more fees (including a fee to open the account)

What do I need to do to open an external bank account? Set up a meeting with the bank to explain your situation and needs (low minimum balance, yearly transitions between students, international wire transfers, etc.) Bring along: • •

•

Two forms of Identification – Drivers License, Credit/Debit card, student ID Your EIN number – Check with your Co-President to see if your chapter already has its own EIN (Employer Identification Number). Apply here if you don’t have an EIN. NOTE: You cannot use the National Office’s EIN for this purpose. Opening Balance – This can be money from your university account, member dues, a Launch Grant you received from the National Office, or any other money your chapter is starting with. Ask the bank what the minimum amount to open a bank account is!

Finance handbook

7 National Office Procedures

National Office Procedures As of August 2013, most chapters are on the GlobalGiving or the Empowered online platform (replacing Razoo.) Funds from these sites are sent to the National Office in a lump sum. The National Office then disaggregates the funds and disburses them to each individual chapter. Please note that the financial transfer from the donor’s hands to the chapter’s hands usually takes over one month. When you receive your check from the National Office, it is required that you deposit the check at least within one week of receiving it. Disbursement checks will be sent on a monthly basis, with the exception of winter and summer break. See the example transaction below considering the donation platform, the National Office procedures, and your chapter: • • • •

August 9 -- John Bob donates $20 on Empowered Around September 10 -- Empowered sends the GlobeMed National Oﬃce all the chapter donations that were received during the month of August Within 3 - 5 business day of receiving the funds -- The GlobeMed National Oﬃce disaggregates the lump sum of donations & disburses checks to individual chapters. Within 1 week of receiving your check -- Director of Finances deposits the check into bank account on behalf of the chapter.

NOTE: The timeline for GlobalGiving disbursements is slightly longer as the GlobeMed National Oﬃce usually receives the funds from their HQ around the 15th of every month.

For additional questions or concerns, contact ﬁnances@globemed.org.

Finance handbook

8 National Office Procedures

Approved Donation Platforms GlobalGiving is an online marketplace that connects donors with grassroots projects in the developing world. In order to get a page on the platform, chapters must join the GlobalGiving challenge and raise $5,000 from 40 unique donors over the course of one month. •

Pros: GlobalGiving acts much like a crowd-sourcing site, in which random donors or corporations can see your page and donate to your project, opening doors to a new community of online donors. GlobalGiving also has a sophisticated system for tracking donations and thanking your donors. GlobalGiving requires that you send impact reports on a quarterly basis, which allows your donors to stay up to date and drives additional donations.

•

Cons: GlobalGiving has 15% fee for every donation, but donors can opt to cover all or part of this fee.

Empowered is an online platform that allows users to set up a fundraiser for a non-proﬁt of their choice. •

Pros: 3.5% fee on each credit card donation and no “challenge” or requirements to keep a page on the site. Option to pass the processing fee onto the donor so that you receive the full amount.

•

Cons: Since Empowered must be managed by the National Office due to our 501(c)(3) status & financial responsibilities, chapters must wait for disbursements to pass through the National Office timeline (outlined above.)

NOTE: If you are interested in using additional donation platforms, consult your chapter advisor prior to making any commitment under the GlobeMed name. It is best to maintain one platform for all donations to avoid confusion with your donors.

Finance handbook

9 Budgeting

Budgeting

Together with your Co-Presidents and Campaigns Coordinators, you’ll create an annual budget that predicts when and how your chapter will spend money, as well as how money is spent for specific events your chapter is planning. In a GlobeMed chapter, there are two separate kinds of money that your chapter wants to distinguish between: • Campaign profits – Money that you are raising for your partner through all campaigns run by your chapter. This category includes the expenses for campaign events, as well as the revenue that they bring in. All campaign profits should go directly to your project. • Money for Chapter operations – Money spent on globalhealthU events, chapter t-shirts, pizza for meetings, etc. This money should come from university funding, or other incomes like chapter membership fees, and NOT a campaign. NOTE: If for some reason you are not eligible for university funding, please contact your chapter advisor to discuss. Budgeting for the year When you make your annual budget, you need to determine if your chapter can raise enough for your project through the events you are planning and/or the grants you are applying for. Also, remember to allocate money for globalhealthU events and operational expenses. Some pointers to keep in mind when budgeting for the year ahead:

•

Be realistic! – While you can’t know exactly what your fundraisers will raise, you’ll want to stay on the conservative side when estimating for ﬁnancial planning purposes & chapter morale.

•

Remember to plan for next year! – It’s a good idea to have $300-$500 in savings at the end of the year after sending money to your partner, so that you can jumpstart your fundraising and operations the following year.

•

Don’t panic if you weren’t 100% right! – Compare your actual numbers with your budget’s predictions, and determine if your chapter should plan an extra event, or make an extra push. Based on the money transfer timelines laid out in your MOU, you should also have a sense of when you may need to make this extra push.

Finance handbook

10 Budgeting

Event-Specific Budgeting Budgeting for a speciﬁc event You should budget for an event in the very early stages of planning, usually around three months before the event date. For a large scale event, it is recommended that you build your budget even sooner. Two quick pointers when doing this type of budgeting: •

Be realistic! – Again, you won’t always know exactly what your fundraisers will raise, but you’ll want to stay on the conservative side when estimating.

•

Hit the pavement & seek out donations or discounts – Your chapter may be able to get donations from local business, (i.e., free food, free space, or a free performance). Be sure to track these “in-kind donations” and thank these donors!

Check out the sample campaign budget form here! NOTE: While this sample Google form is useful, you must make your own. The replies to this sample form will not be accessible to you. Use this as a template rather than an actual form. Hosting speakers GlobeMed encourages chapters to invite speakers to their events -- this is a great way to engage the community and share expert opinions on health-related topics. Here are some suggestions on how to get speakers to your events without taking a toll on your budget: • •

•

Don’t commit to honorariums (a fee that goes to the speaker or the speaker’s organization). Chapters should try to get their universities to pay for speaker travel, lodging, etc. To secure university funding, seek out departments and schools that are related to the event that you are hosting. Chapters should not be using money from the campaign to pay for any events. All money from fundraising should go directly to your partner and project! Speak with related student groups that would be willing to partner or co-host the event with your GlobeMed chapter.

Finance handbook

11 Projections

Projections

Financial projections allow chapters to predict potential profit from campaign events and to track progress towards their MOU fundraising goal. Projections are key to any organization -- they allow you to translate your goals into tangible targets, provide a numeric feedback tool, and forewarn potential problems. In making projections, you, your Co-Presidents, and your Campaign Coordinators are creating an important financial timeline for the year. When events are over, you can compare the predicted profit to actual profit. If you have a higher profit than expected, you are well on your way to achieving your MOU goal. If you have a lower profit than expected, you must figure out how to re-route your plans in order to make your goal. Make projections by considering audience/demand, revenue, and expenses. You can base your predictions off of data from the last year’s event or can make educated estimates based on expressed interest via Facebook, chapter member word of mouth, etc. Use the spreadsheet below as a template on how to track projections:

Campaign Projections Spreadsheet Campaign Name

Projected Proﬁt

Per Year or Semester

Budget

Financial Eﬃciency (Proﬁt / Revenue)

Met ﬁnancial goal?

If not, why and how can you improve?

TOTAL Check out the Google spreadsheet sample of this and an example table of how to track grants on the second tab of this spreadsheet.

Finance handbook

12 Financial Transparency

Financial Transparency

Transparency allows supporters to hold organizations accountable for their donations. Financial transparency is important for non-profit organizations because it offers donors the trust and confidence that their money is going to the right location. Transparency breeds collaboration, as openness about finances allows staff, donors, and supporters to fulfill the chapter’s commitments and increase giving. Presenting information to donors and supporters In order to maintain transparency, Directors of Finance should keep chapter members, donors, and supporters up to date with your chapter’s financial status. This includes providing financial documents, summaries, or quarterly reports that include: • • • •

An explanation of GlobeMed’s mission and the chapter’s partnership An explanation of how individuals can learn more about the chapter’s activities/events Financial information, including a summary of the chapter’s accounting practices A diagram of the chapter’s progress towards their fundraising goal

Check out GlobeMed at Columbia University’s quarterly report or Charity Water’s annual report for an idea on how to present financial information to donors. Every chapter’s annual report should also help maintain financial transparency. Presenting information to chapter As the chapter’s main supporters, staff members should be informed of the chapter’s financial progress on a regular basis. Every month, the Director of Finances should present a financial report to the chapter detailing how much each event has made during the year, the chapter’s total fundraising amount, and the amount needed to reach the MOU goal. Use tools such as a fundraising thermometer or a finance table to keep your chapter up to date!

Finance handbook

13 Sample Timeline

Sample Timeline of Your Year Ahead April/May – Co-Presidents should meet with the Director of Finances for the academic year • Director of Finances should give improvements, things they wish they did, challenges over the course of the year, etc. • Director of Finances is responsible for transitioning the new Director during this time. June/July – Establish financial systems for the upcoming year • You should make new documents, determine new goals, clarify systems, etc. • Work with previous new Director of Finances’ to transfer account into your name August – Make new projections and plan for the new school year • Work with Co-Presidents and Campaign Coordinators to plan out the events for the year and financial milestones to keep track of • Show Co-Presidents your financial spreadsheets and discuss how you’ll keep them up to date • Discuss how often you want to send out the financial report to the Executive Board and to the full chapter • i.e. “GlobeMed at CU-Boulder will send bi-weekly updates on financial situation to Executive Board and include a monthly update in the PPT during staff meetings.” 1st Executive Board meeting – Inform your Executive Board of your vision and the roles they play in achieving the goals you have set. Between 2nd staff meeting and first campaign event – teach everyone how to use Square Winter Break – RE-EVALUATION of your Projected Expenses and Revenues • This is a period where you see if you projected correctly or need to make adjustments for the Spring semester March 15th – Confirm process with bank/partner regarding how to send money – set calendar steps for how this will be accomplished and by what dates they will have money as outlined by the MOU. Two weeks after sending money – Call and/or send follow-up email to ensure they received the check April/May – Start putting together your documents for the new Director of Finances. Don’t forget that it is your responsibility to transition them! July 1st – Send final financial documents/numbers to the National Office for the Annual Report • Make sure you double check ALL of the Annual Report sections that ask about finances

Finance handbook

13 Sample Timeline

The Chapter Health Matrix will also serve as a guideline for chapter dissolution by de"ning the baseline expectations for a GlobeMed chapter. Columns 1 and 2 outline characteristics of struggling and failing chapters. These areas are a "danger zone" in which the National O#ce and the chapter will work together to determine next steps and benchmarks for the coming year to elevate programs. Lack of growth within one or more of the programs to a satisfactory level within the year may lead to consideration for dissolution.

The matrix should be used as a collaborative tool for sta$ and executive board members alike. Each chapter member should feel comfortable engaging with the sections and understanding how it informs their chapterâ&#x20AC;&#x2122;s plans for the year. The matrix should be referenced throughout the year to measure intended growth. Executive board members should have clearly de"ned goals for each of their teams based on suggestions at each level. Together, the National O#ce and the chapter will use the matrix to determine chapter potential and progress throughout the year.

The Chapter Health Matrix is a !exible tool intended to measure the status and health of chapters within the network. Ranging on a "ve-point scale, this rubric allows the National O#ce and chapter to track progress together and determine necessary or potential growth areas within each chapter program. It will provide you with examples for how to innovate and pioneer new de"nitions of success and elevate your chapter to the next level. You can "nd tangible next steps and markers of growth by looking through each column and tracking how your chapter is improving.

Using the Chapter Health Matrix

chapter health matrix

* Any bullet point with an asterisk indicates that a resource / tool is available online

Column 1: Level 1 de!nes characteristics of a failing chapter. At no point should chapters be at this level. Continued Level 1 status of any program should be considered a serious danger to the chapter's success and will cause the chapter to be considered for dissolution.

Column 2: Level 2 shows characteristics for programs that fall below the average. Chapters who !nd one or several of their programs in this category will focus on improvement with their Chapter Adviser, and set milestones over an allotted amount of time to bring their program back up to average before dissolution is considered.

Column 3: Level 3 for chapters is seen as the base-line / standard. This is where all chapter programs should be, to be considered average.

Column 4: Level 4 signi!es programs that are healthy, but can move up a level by strengthening systems. A 4 chapter program is above the average, but still has the potential to improve.

Innovation & Magic: Where the MAGIC HAPPENS! These are examples of ways in which chapters have exhibited a high degree of innovation and creativity. Not all chapters may be able to exhibit/replicate these, but we encourage you to draw on them for inspiration. All chapters that !nd themselves in the 5 category should be working to push the boundaries of the matrix, pioneer new ideas, and help other chapters see more possibilities. Column 5: Any program that falls in the 5 category is already thriving in the points from 4 but goes forward to surpass NatO expectations. All chapters are capable of and should be striving for the characteristics in this column.

Using the Chapter Health Matrix

chapter health matrix

•No bookkeeping systems •No !nancial e"ciency (cost > revenue) •No wiring of funds to partner

Essential Elements

•Lack of transparency •Low !nancial e"ciency of events •Low-level understanding of NatO !nancial processes •Lack of adherence to wiring deadlines

•Bookkeeping - Updated documents + transparent systems •High !nancial e"ciency of events * •Level of preparedness & understanding of NatO processes* •Adherence to wiring deadlines •Eboard knowledge of systems: how to access bank account, what to do with money collected, budgets for each program •Process for projecting event pro!t •Utilization of university resources and funding

chapter health matrix

finances

•Public / chapter / partner knowledge of budget + !nancial systems •Dashboard updated to re#ect !nancial revenue and expenses on a weekly basis + presented to sta$ monthly •High diversity of funds raised (individual donors, staple events, etc)* •Growth of fundraising goal from year to year

•Cost bene!t analysis pre & post event * •Corporate matching donations •Thorough process for transitioning !nancial systems knowledge from year to year

Innovation & Magic

Finance handbook

14 Resources: Square

Square

Each Director of Finances and Campaigns Coordinator should have a Square reader.

Square is a handy, practical debit and credit card reader that allows users to accept money on their iOS or Android smartphones or tablet computers. The application includes a free Square Reader, a small plastic device that plugs into the phone’s audio jack, supports the handbook entry of card details, and direct deposits all funds into your bank account. This can be especially useful for campaigns, as it allows users to pay via debit and/or credit card and provides a list of all of the transactions swiped. Teach the whole chapter how to use the reader and the app -- errors here are particularly hard for the Director of Finances to ﬁx. 1. Create an account under your chapter’s name: https://squareup.com/ 2. Use your chapter’s information to make transitioning easy. 3. Get the square reader a. ALWAYS important to order a few (I suggest 3-5 depending on your chapter size) 4. Stipulations of this account a. Swipe cards: Cost 2.75% of amount b. Manually-entered cards: Cost is 3.5% + 15¢ per transaction 5. Privacy Issues a. Due to new privacy laws, Square Up does not give you any of the information of the people you swipe b. SOLUTION: When you put down the amount, they have a description i. Put down the person’s name and email address so you can send THANK YOU’s if it is a large donor ii. Put down transaction event so that the Dir. of Finance has an idea of where the money is coming from 6. Recommendation: Have your Dir. of Finance to have a swipe reader at ALL TIMES. 7. Bring Square Readers to every campaign or fundraising event.

Finance handbook

Resources: Sample Finance Emails

Finance handbook

Resources: Spreadsheet Templates

Campaign Events Campaign Name

Expense

Revenue

Net Proﬁt (Rev - Exp)

Financial Eﬃciency (Proﬁt/Rev)

Notes

TOTAL

Bank Account Date

Account Name

Amount in Account

Notes about Account *Amount that is required to be present in the account at all times.

TOTAL

Transfers to Partner Semester

Date Sent

Date Received **Check Online or by the 2 week follow-up email

TOTAL

Find sample Google spreadsheets here.

Method

Amount

Received *YES/NO