Assignment 4: Nonprofit Profitability Ensures Steady Cash Flow
According to the Reliable Cash Flow Projections sheet the organization referred to in Chapter 10 requires a cash flow of $13,462 per day to stay in the black, without any profit (McLaughlin, 2009, p. 137) and according to The Balance Sheet the organization has only enough cash on hand $16,190 which is only a little over the organization’s one day’s operational needs (McLaughlin, 2009, p. 125). What is most troublesome about the Reliable Cash Flow Projections sheet is if the organization sticks to the current projected plans it will be ($253,846) short at the end of the year. Unfortunately, inadequate annual fundraising planning and not ensuring there is enough cash on hand limits …show more content…
Therefore, I would focus on “accelerating fundraising” by adding more fundraisers each month that bring in cash donations (Dropkin, 2003), except September because October shows the highest projected month for meeting the organization’s needs. For instance, I am always mystified why nonprofits do not take advantage of the fact that there is a holiday in almost every month of the year. The humane society, cancer research, stop heroin use, save the plant, or any other worthy cause could probably double their funding by using every holidays to raise awareness, increase donations, and attract new donors. For example, the humane society could send a stuffed animal to your loved one on Valentine’s Day for a $40 donation. And, the organization could enclose an invitation for the loved one who receives the stuffed animal to become a donor. This organization has little investments-securities on line 54, receives little in grants, and most of the assets are tied up in land, buildings, and equipment which are not much help when an organization needs cash now. In addition, the organization has a high loss for A/R, and it would appear the organization is actually down almost a $900,000 for the EOY. The organization could change payments for insurance as suggested by (McLaughlin, 2009, p. 138) so payments are more spread out more but the bottom line is the organization needs to pump up the volume on building
According to the Reliable Cash Flow Projections sheet the organization referred to in Chapter 10 requires a cash flow of $13,462 per day to stay in the black, without any profit (McLaughlin, 2009, p. 137) and according to The Balance Sheet the organization has only enough cash on hand $16,190 which is only a little over the organization’s one day’s operational needs (McLaughlin, 2009, p. 125). What is most troublesome about the Reliable Cash Flow Projections sheet is if the organization sticks to the current projected plans it will be ($253,846) short at the end of the year. Unfortunately, inadequate annual fundraising planning and not ensuring there is enough cash on hand limits …show more content…
Therefore, I would focus on “accelerating fundraising” by adding more fundraisers each month that bring in cash donations (Dropkin, 2003), except September because October shows the highest projected month for meeting the organization’s needs. For instance, I am always mystified why nonprofits do not take advantage of the fact that there is a holiday in almost every month of the year. The humane society, cancer research, stop heroin use, save the plant, or any other worthy cause could probably double their funding by using every holidays to raise awareness, increase donations, and attract new donors. For example, the humane society could send a stuffed animal to your loved one on Valentine’s Day for a $40 donation. And, the organization could enclose an invitation for the loved one who receives the stuffed animal to become a donor. This organization has little investments-securities on line 54, receives little in grants, and most of the assets are tied up in land, buildings, and equipment which are not much help when an organization needs cash now. In addition, the organization has a high loss for A/R, and it would appear the organization is actually down almost a $900,000 for the EOY. The organization could change payments for insurance as suggested by (McLaughlin, 2009, p. 138) so payments are more spread out more but the bottom line is the organization needs to pump up the volume on building