The Nonprofit Bookkeeper

In this episode, Aishat dives into a crucial topic for anyone managing charity finances: understanding fund types. Starting with the basics of restricted and unrestricted funds, she unpacks common terms like designated funds, ringfenced funds, and general funds, explaining what they mean and how they impact a charity's financial operations. This episode is all about helping nonprofit professionals, trustees, and financial advisors speak the same language when it comes to fund management. Whether you're a trustee, staff member, or a charity’s accountant, this episode will provide clarity and practical tips to ensure your financial management is spot on. KEY TAKEAWAYS * Understanding fund types is crucial for effective financial management. * Restricted funds must be used as specified by the donor. * Unrestricted funds offer more flexibility for charities. * Designated funds are a type of unrestricted fund set aside for specific purposes. * Ring-fenced funds can refer to restricted or designated funds, depending on context. ABOUT YOUR HOST Aishat [https://www.linkedin.com/in/aishat-idris/] operates her own bookkeeping and accounting services practice – BAnC Services [https://www.bancservices.co.uk/] which focuses primarily on serving non-profits. Before founding her practice, she dedicated over two decades to the non-profit sector. With her podcast, Aishat shares practical insights and expertise to streamline financial management for non-profits; and shines a light on the often unseen & unheard efforts that uphold the delivery of a non-profit’s mission. Beyond her professional endeavours with non-profits, Aishat is deeply committed to supporting single mothers with navigating financial management challenges and is the author of "Money Solutions for Single Mums [https://www.amazon.com/Money-Solutions-Single-Mums-Financially-ebook/dp/B0CJ8GPH79]". She also champions financial literacy among young black adults and thrives in discussions about money management. Work with Aishat: www.bancservices.co.uk [http://www.bancservices.co.uk] CONNECT Instagram [https://www.instagram.com/npbookkeeper/] TikTok [https://www.tiktok.com/@npbookkeeper?_t=8nAtohuV040&_r=1]

In this special episode, Aishat explores what charity fraud is, the common risks charities face, and actionable steps to prevent it. With a focus on small charities, Aishat explains why these organizations are particularly vulnerable to fraud and offers practical tips to safeguard resources, protect reputations, and maintain public trust. Plus, she shares some real-life examples of charity fraud. Whether you’re a charity leader, trustee, volunteer, or donor, this episode is packed with valuable insights to help you stay fraud-aware all year long. KEY TAKEAWAYS * Charity fraud undermines trust in the nonprofit sector. * Awareness of fraud is crucial for all charities. * Robust policies can help mitigate fraud risks. * Regular audits can catch discrepancies early. * Training staff to recognize red flags is essential. * Fraud prevention is a collective responsibility. EPISODE RESOURCES Donations Fraud: https://www.bdo.co.uk/en-gb/insights/industries/not-for-profit/giving-or-taking-is-your-charity-losing-funds-to-fraud [https://www.bdo.co.uk/en-gb/insights/industries/not-for-profit/giving-or-taking-is-your-charity-losing-funds-to-fraud] Internal Fraud: https://www.gov.uk/government/case-studies/case-studies-of-insider-fraud-in-charities [https://www.gov.uk/government/case-studies/case-studies-of-insider-fraud-in-charities] Register Interest for Charity Fraud Report 2024: https://www.bdo.co.uk/en-gb/insights/advisory/forensic-services/charity-fraud?_gl=1*1bzqw7w*_ga*MTk3ODAzMzc0Mi4xNzMyNTQ4NTUw*_up*MQ..#register [https://www.bdo.co.uk/en-gb/insights/advisory/forensic-services/charity-fraud?_gl=1*1bzqw7w*_ga*MTk3ODAzMzc0Mi4xNzMyNTQ4NTUw*_up*MQ..#register] ABOUT YOUR HOST Aishat [https://www.linkedin.com/in/aishat-idris/] operates her own bookkeeping and accounting services practice – BAnC Services [https://www.bancservices.co.uk/] which focuses primarily on serving non-profits. Before founding her practice, she dedicated over two decades to the non-profit sector. With her podcast, Aishat shares practical insights and expertise to streamline financial management for non-profits; and shines a light on the often unseen & unheard efforts that uphold the delivery of a non-profit’s mission. Beyond her professional endeavours with non-profits, Aishat is deeply committed to supporting single mothers with navigating financial management challenges and is the author of "Money Solutions for Single Mums [https://www.amazon.com/Money-Solutions-Single-Mums-Financially-ebook/dp/B0CJ8GPH79]". She also champions financial literacy among young black adults and thrives in discussions about money management. Work with Aishat: www.bancservices.co.uk [http://www.bancservices.co.uk] CONNECT Instagram [https://www.instagram.com/npbookkeeper/] TikTok [https://www.tiktok.com/@npbookkeeper?_t=8nAtohuV040&_r=1]

In this episode, Aishat explores the concept of a negative budget and how it can be used strategically by charities to drive growth and meet community needs. While many charities strive for balanced or surplus budgets, sometimes running a planned deficit can help organizations invest in their future. Aishat breaks down when and why a charity might choose to adopt a negative budget, how to present it to a board, and what to do if the board is more risk-averse. KEY TAKEAWAYS * A negative budget can be a valuable planning tool if approached thoughtfully. * Board approval is critical for implementing a negative budget. * Different boards have varying levels of risk tolerance. * Evidence of potential funding sources can help secure board approval for a negative budget. * Preparing a balanced budget as a baseline can demonstrate financial responsibility. * Transparent communication with the board is essential for maintaining trust. * A negative budget can drive meaningful change if managed properly. ABOUT YOUR HOST Aishat [https://www.linkedin.com/in/aishat-idris/] operates her own bookkeeping and accounting services practice – BAnC Services [https://www.bancservices.co.uk/] which focuses primarily on serving non-profits. Before founding her practice, she dedicated over two decades to the non-profit sector. With her podcast, Aishat shares practical insights and expertise to streamline financial management for non-profits; and shines a light on the often unseen & unheard efforts that uphold the delivery of a non-profit’s mission. Beyond her professional endeavours with non-profits, Aishat is deeply committed to supporting single mothers with navigating financial management challenges and is the author of "Money Solutions for Single Mums [https://www.amazon.com/Money-Solutions-Single-Mums-Financially-ebook/dp/B0CJ8GPH79]". She also champions financial literacy among young black adults and thrives in discussions about money management. Work with Aishat: www.bancservices.co.uk [http://www.bancservices.co.uk] CONNECT Instagram [https://www.instagram.com/npbookkeeper/] TikTok [https://www.tiktok.com/@npbookkeeper?_t=8nAtohuV040&_r=1]

In this episode, we tackle an important yet often misunderstood topic: How can directors of social enterprises be paid legally and ethically? Aishat breaks down the key legal guidelines governing director payments, discusses best practices for handling both directorial salaries and payments for additional services, and explores how to manage potential conflicts of interest. Whether you’re a CIC director, founder, or part of a social enterprise team, this episode will give you the insights you need to stay compliant while maintaining transparency and fairness. KEY TAKEAWAYS * Directorial Duties vs. Additional Services: Learn the difference between being paid for directorial duties (via salary) and invoicing for separate services you provide outside your director role. * Legal Guidelines: We’ll walk through the essential requirements under the Companies Act 2006, including the use of PAYE for salary payments and the need for board approval when invoicing the company. * Managing Conflicts of Interest: Discover how to handle payments for services without crossing ethical lines, ensuring that your board makes the final decisions on director remuneration. * Best Practices for Transparency: Tips on disclosing director payments in your annual reports to build trust with stakeholders and ensure compliance. EPISODE RESOURCES Guidance on CIC Remuneration: https://www.gov.uk/government/publications/community-interest-companies-how-to-form-a-cic/community-interest-companies-guidance-chapters#things-to-consider [https://www.gov.uk/government/publications/community-interest-companies-how-to-form-a-cic/community-interest-companies-guidance-chapters#things-to-consider] ABOUT YOUR HOST Aishat [https://www.linkedin.com/in/aishat-idris/] operates her own bookkeeping and accounting services practice – BAnC Services [https://www.bancservices.co.uk/] which focuses primarily on serving non-profits. Before founding her practice, she dedicated over two decades to the non-profit sector. With her podcast, Aishat shares practical insights and expertise to streamline financial management for non-profits; and shines a light on the often unseen & unheard efforts that uphold the delivery of a non-profit’s mission. Beyond her professional endeavours with non-profits, Aishat is deeply committed to supporting single mothers with navigating financial management challenges and is the author of "Money Solutions for Single Mums [https://www.amazon.com/Money-Solutions-Single-Mums-Financially-ebook/dp/B0CJ8GPH79]". She also champions financial literacy among young black adults and thrives in discussions about money management. Work with Aishat: www.bancservices.co.uk [http://www.bancservices.co.uk] CONNECT Instagram [https://www.instagram.com/npbookkeeper/] TikTok [https://www.tiktok.com/@npbookkeeper?_t=8nAtohuV040&_r=1]

In this episode of the Nonprofit Bookkeeper, host Aishat discusses the implications of trustee payments in light of the disqualification of Naomi Campbell and Bianca Helmick from being charity trustees or holding senior management positions in a charity for a combined period of 14 years. The conversation delves into the legal framework surrounding trustee payments, the findings of the Charity Commission's investigation, and the governance failures that led to a finding by the inquiry of significant financial mismanagement. Aishat emphasizes the importance of transparency, accountability, and adherence to charity regulations, providing valuable lessons for nonprofit leaders to prevent similar issues in their organizations. KEY TAKEAWAYS * Trustee payments must align with the charity's governing documents. * Documentation of expenses is crucial for accountability. * Charity trusteeship comes with serious legal responsibilities. EPISODE RESOURCES Charity Inquiry: Fashion for Relief - [https://www.gov.uk/government/publications/charity-inquiry-fashion-for-relief/charity-inquiry-fashion-for-relief#fnref:2]GOV.UK [http://GOV.UK] ( [https://www.gov.uk/government/publications/charity-inquiry-fashion-for-relief/charity-inquiry-fashion-for-relief#fnref:2]www.gov.uk [http://www.gov.uk]) [https://www.gov.uk/government/publications/charity-inquiry-fashion-for-relief/charity-inquiry-fashion-for-relief#fnref:2] 'I was not in control': Naomi Campbell defends her role after she was banned from being charity trustee | Ents & Arts News | Sky News [https://news.sky.com/story/naomi-campbell-banned-from-being-charity-trustee-13222443] Naomi Campbell orders a new investigation into her charity after trustee ban | ITV News [https://www.itv.com/news/2024-09-27/naomi-campbell-orders-a-new-investigation-into-her-charity-after-trustee-ban] ABOUT YOUR HOST Aishat [https://www.linkedin.com/in/aishat-idris/] operates her own bookkeeping and accounting services practice – BAnC Services [https://www.bancservices.co.uk/] which focuses primarily on serving non-profits. Before founding her practice, she dedicated over two decades to the non-profit sector. With her podcast, Aishat shares practical insights and expertise to streamline financial management for non-profits; and shines a light on the often unseen & unheard efforts that uphold the delivery of a non-profit’s mission. Beyond her professional endeavours with non-profits, Aishat is deeply committed to supporting single mothers with navigating financial management challenges and is the author of "Money Solutions for Single Mums [https://www.amazon.com/Money-Solutions-Single-Mums-Financially-ebook/dp/B0CJ8GPH79]". She also champions financial literacy among young black adults and thrives in discussions about money management. Work with Aishat: www.bancservices.co.uk [http://www.bancservices.co.uk] CONNECT Instagram [https://www.instagram.com/npbookkeeper/] TikTok [https://www.tiktok.com/@npbookkeeper?_t=8nAtohuV040&_r=1]