The financial reality of COVID-19 is hitting home, causing uncertainty at nonprofit organizations around the country. How should incoming cash flows forecasts be adjusted? What are the best supplemental sources of revenue for your situation? The Chronicle of Philanthropy has been writing some good articles to help navigate you through these questions.
There’s a lot to consider out there. In the article at the bottom of this page, the Chronicle outlines 5 key considerations for nonprofits in light of the current situation. Below is a summary of those actions.
What you need to know: 5 key financial tips for your nonprofit
- Figure out where you stand: What’s your financial situation and what problems might you face down the road, short-term and long-term.
- Forecast what money is coming in: Determine what revenue you can count on over the next three months and what expenses you’ll incur.
- Consider loans: If revenue is delayed, a loan could be the best course of action. If you can count on a future source of revenue, a loan can bridge a short-term loss of cash.
- Cost cutting may still be necessary: If you’re unlikely to recoup the lost revenue, a loan could make a bad situation even worse.
- Consider emergency funds for relief: Some groups created emergency funds for nonprofits that combine low cost loans and grants.
As we post these resources to our blog, please do let us know if there’s a certain topic you’d like addressed. We will keep the info flowing, and would love your feedback. In the meantime, thank you for remaining focused on how your organization can best position itself to help others in our communities. When it’s over, your efforts will have made a difference.Download the Chronicle article
Information provided by SEI Investments Management Corporation, a registered investment adviser and wholly owned subsidiary of SEI Investments Company.
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