Core 1-on-1 Consulting Services
Nonprofit Finance Fund® works in-depth with nonprofit managers to diagnose their organization's financial situation and help them manage areas of financial weaknesses and take better advantage of their financial strengths and opportunities.
We always begin by listening: we assess an organization's current situation and needs. From there, we develop a work plan that will help managers better understand, interpret and use their financial data to make well-informed decisions. After helping them implement new financial tools and practices, we work with the organization to plan next steps to put them on the road to meeting their future goals.
Nonprofit Business Analysis (NBA) or Financial Situation Analysis
Nonprofit leaders need to know where they stand financially and to understand how much financial risk they can tolerate. NFF®'s assessment is designed to help managers and board members better read, interpret and use their financial information to plan and manage. In our initial consultation, we evaluate an organization's financial condition over a multi-year period to shed light on its trends, challenges and opportunities. We meet with the client's executive leadership and some board members to discuss our assessment and to suggest next steps for improving the organization's financial health. [read more] [download]
Our initial analysis looks to the past and present to identify trends and organizational patterns. Once we've diagnosed an organization's financial situation, we then help plan for the future. We create a customized work plan for each organization that provides financial tools and services to help them better manage their problems or leverage the opportunities revealed by the analysis.
Implementation and Practice
Below is a selection of the tools and services that NFF® uses to help organizations manage, in both good and bad times. These tools help organizations make better decisions about managing program budgets, plan for unexpected funding shortfalls, and track their expenses and revenues over time.
- Program Profitability Modeling (PPM): A vital tool in an economic crisis, PPM helps nonprofits understand the practical revenue and expense dynamics of each major program and determine which programs are operating at a profit or loss. PPM can help management and board members set program priorities, tackle deficits, improve the financial bottom line, and identify ideal cost savings.
- Scenario Planning: Planning for the unexpected is critical in times of uncertainty. NFF works with management to evaluate how unanticipated revenue shortfalls could impact the organization. We explore opportunities for maximizing revenue, cutting costs, and re-channeling resources. By developing best and worst case scenarios, we give nonprofits the tools to manage risk and think creatively about their financial future.
- Cash Flow Planning: We offer guidance on how to produce and use monthly cash flow projections (CFP). A CFP forecasts cash inflows and outflows over a period of time. It provides visibility into the timing and reliability of cash. In addition to being an important element of any business plan, a thoughtful CFP can improve chances of receiving a line of credit or working capital loan.
- Financial Reporting Assistance: To make good decisions, nonprofits need accurate, up-to-date, and clear financial information. NFF assesses the organization's internal management reporting tools-such as cash flow projections, budget vs. actual reports, program analyses, and revenue and expense projections. We then help organizations make improvements so that these reports are most useful and effective for management and communications.
- Systems Replacement Plan (SRP): NFF® can help your organization project the costs of long-term building maintenance. The SRP provides you with a practical plan to take care of your building for the next 20 years so that it can continue to safely house your mission and programs. It provides a comprehensive facilities analysis by engineers, architects or construction consultants; forecasts the necessary replacement of specific systems and equipment, presuming routine maintenance; and details a year-by-year breakdown of proposed costs and savings. [read more]
Reports, Presentations,Communications Coaching
After conducting a customized analysis, NFF can help a nonprofit communicate its financial story and the results of recession planning work. Our services span from reporting on or presenting findings and recommendations in meetings with boards, funders, or lenders to coaching clients on how to integrate compelling visual and written information into proposals and presentations.