June 28, 2017
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.
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).
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?
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.
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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Working with Marshal Whittey at First Nonprofit has been a great experience. He handles our request as a priority and goes above and beyond to resolve any issues we have in a timely manner. Marshall follows through to the end and ensures our needs are met. He has been a great resource for LSC and our “go to” for any tax questions we may have. With LSC transitioning several facilities into one federal tax identification number, First Nonprofit was able to assist and provide guidance with best practices resolving claims to each entity. Additionally First Nonprofit provided knowledge (information materials) and one on one training to HRS group with best practices to handle claims state adjudicated, fraudulent claims, and appeals. And processing information in the First Nonprofit [unemployment claims] system allows for timely information can be collected.
My experience with FNP has been wonderful. Unemployment in general is quite confusing and FNP has simplified the process for us. Everyone we have reached out to or worked with has been very helpful and follows up to be sure we understand the information. I am so happy we made the switch to FNP!
First Nonprofit smoothed the unemployment perils for our organization during Covid. Without the ability to cap our UI exposure, we would not have been able to weather the storm. The program worked perfectly and we have come out of the pandemic ready to forge on. Thanks FNP!
My experience with the FNP has been fantastic. The idea of setting funds aside for the unemployment tax liability is a bedrock for nonprofit organizations like mine, namely ASHBA; what is even more advantageous is having the FNP as a custodian of those funds. 100% recommended!
I would like to comment on my experience with FNP….to date our District has saved $1,000’s of dollars by being enrolled in the First Nonprofit program. My only regret is that we did not know about this method of paying unemployment tax years ago….as I had figured about five years
ago, had we enrolled 15-20 years ago, we could have saved our small school district upwards of $500,000 in payments to IDES. Also we would have had a pretty hefty sum of money in our Reserve Account. Thankfully I attended a workshop hosted by First Nonprofit back in 2015 which got the ball rolling!
I have worked with the First Non-Profit Team for many years, and I appreciate the quick response and care that Cecilia and the team provides anytime I have questions. While there are other providers that may provide like services, First Nonprofit will always be my first choice! I appreciate you!
First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.
Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!