Not-for-profit organisations often begin their financial year with a healthy budget and cash in the bank. Six months on though, finances often take a more prominent seat at the Board table as the state of membership renewals, targets and project budgets are monitored more closely.
Knowing your total expected revenue and expenditure for the year allows you to recognise if your organisation is going to make a surplus or deficit in time for you to make any necessary changes. Forecasting doesn’t need to be as onerous as it sounds, in fact it will help your organisation more than you can imagine.
Here’s our forecasting checkpoints:
Forecasting cash flow is equally important and is essential for not-for-profit organisations that mostly operate on low reserves. Cash flow can be irregular depending on the timing of membership renewals, sponsorships and grants.
When forecasting cash flow use these checkpoints:
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