For many board members and small nonprofit managers, assessing financial security can create some anxiety. As board members hold fiscal responsibility for the organization, knowing where the organization stands from a cash flow perspective can be invaluable for making strategic decisions. But this skill sometimes feels out of reach. Many nonprofits operate on a shoestring and spend money when it’s available, but knowing the cycle of an organization’s cash flow can assist in lifecycle growth. In this helpful video, American Nonprofits’ executive director, Marc Rand breaks down the process of cash flow projections, step-by-step.
Also, visit the resource page for the template for planning your organization’s cash flow.