On May 1, 2023, Janet Yellen, the US Treasury Secretary, announced that the US might run out of cash in a month. This should have nonprofit leaders and board members seriously asking themselves how much cash on hand the organization has in the event of an emergency. Three years ago, the financial wreckage of the pandemic hit quickly so nonprofits without adequate reserves were able to rely on government and Read More
Recession-Proof Your Nonprofit in These Five Ways
There’s more speculation about recession out there. According to the Bureau of Economic activity, US Gross Domestic Product (GDP), a measure of economic output, the US grew at a rate of 1.1% the first three months of 2023. This is a decrease from the last quarter of 2022. Which was a decrease from the quarter before. Seeing a trend? Nonprofits are bracing for the double threat of increased demand from their Read More
3 Ways Nonprofits Prepare for Increased Financial Support
The last three years have been challenging for a number of nonprofits, yet a lucky few received increased philanthropic support from, for example, pandemic government grants or private foundations, or some have received major gifts and bequests from wealthy donors. And yet while any unplanned funding bounty provides enormous opportunity for a nonprofit striving to improve philanthropic impact, a sudden increase in Read More
3 Things Nonprofits Should Know About Cash
So far two regional banks have failed and others are struggling which is a very nasty way reminding us that importance of nonprofits having emergency cash on hand. In these chaotic economic times, here are three things nonprofits should know about emergency reserve cash. Have a Nonprofit Reserve? Use it! With a recession looming, emergency funds is lifeline toward strength. Document and monitor reserve spending with Read More
How to Manage Nonprofit Cash
Well, it’s happened. A regional bank failed and others are struggling. What does it mean for a bank to fail? It means the bank cannot fulfill its obligations to depositors or borrowers. While bank failures are rare, we are again reminded that they do happen. Since the year 2000, over 500 banks have failed, the majority during the great recession of 2008. Why should nonprofit leaders care about this? Many small to Read More
A Fairlight Advisors Nonprofit Financial Planning Update: 9.30.22
Well, it's been a wild ride in the stock market this week for nonprofit investors, much like living at home with a teenager, I've still got one of my own here. But we've all been teenagers once upon a time, we've been cold, one minute, hot and bothered the next up, down. And that's a lot of what we've been experiencing in the market this week. But here at Fairlight advisors, we sit down with our nonprofit endowment Read More
Nonprofit Financial Resilience and the Network Gap
Having a powerful network can bolster a nonprofit’s donor base, ensure financial resilience and open access to additional funding sources. But what happens when the Executive Director and Board Members do not have a powerful network? The result is a Network Gap. I have been following LinkedIn’s Research and Social Impact focus on The Network Gap and have been continuing to ponder it terms of nonprofit fundraising and Read More
Three Things Financially Resilient Nonprofits Do
If there is anything a two-year global health and economic crisis has shown nonprofits is that financial stability is fragile. Even with good nonprofit financial planning, organizations survive on the thinnest of margins, focusing all resources on the philanthropic mission, often with very little wiggle room to maneuver out of a emergency. An untimely mistake or an unanticipated loss can require a sufficient cash Read More
Nonprofit Boards: Ask These 5 Financial Questions
Many, upon joining a nonprofit board, assume the organization is sound financial plan and even financially resilient for the next few years of board tenure (unless we have joined an organization knowing it was distressed). As a board member, you may not know how to assess whether an organization is financially resilient, yet you can see from the outside that the organization is well supported. You might even do more Read More
Is your nonprofit financially resilient? Take a Nonprofit Financial Plan X-ray.
Is your nonprofit financially resilient? Can it survive the onslaught of crises after crises and still fulfill its philanthropic mission? Are its funding needs matching its funding sources? Or does it fight for survival every time an unexpected, external event occurs? While assessing true resilience requires a deep dive into an organization’s financials, program operations and administrative policies and procedures, Read More
