Financial Management for Nonprofits

June 28, 2017

Financial Management for Nonprofits

Financial Management for Nonprofits (1)

For nonprofits, strategic financial management is essential for ensuring that organizations remain fiscally sustainable during  changing times. Budget cuts, misuse of funds, and other unanticipated liabilities pose a huge future risk. Having a solid plan for how to respond to unexpected turmoil makes a world of difference. Here are a few tips for steadily managing nonprofit finances.

Strategy

Develop a detailed plan to secure internal  finances. It’s imperative to know exactly where money is coming from and a plan for how it will be used. Here are a few questions to answer when developing a financial strategy (courtesy of KnowHowNonprofit.org).

  • Where are we now?

  • What are our plans for the future?

  • How will we get there?

  • Do we know what the risks are and how we will manage these?

  • How will we manage the competing demands of spending against savings needed?

In additional to those questions above,the following will help in planning a solid financial strategy for your organization. How will the organization generate revenue or will it solely rely on gifts from donors?

The Importance of Cash Reserves

Having a nest egg is key for nonprofits that wish to grow and be financially healthy for the  long-term. Many organizations regularly face uncertainty due to economic conditions and need operating reserve balances to ensure future working capital is available.

Budgeting

A budget is a financial plan that serves as a monthly guide and is crucial in managing  short and long term cash flow.  With budgeting, nonprofits can focus on long, and short term goals while managing  organizational growth.

We hope you find these tips useful in structuring your nonprofit’s financial strategy.

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Testimonials

NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.

New York Council of Nonprofits, Albany, NY

It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios. We are impressed with the accuracy of their employment decisions, integrity of their employees and efficiency of their claim handling. We greatly respect and value the consistent, impressive cost savings from the utilization of their outstanding services.

 

Thresholds, Chicago, IL

Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.

Illinois Network of Charter Schools

Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.

Hugh Parry, Retired President of Prevent Blindness America