Nonprofit Finance Fund

Dealing with Tough Times: How NFF can help

Nonprofit Finance Fund's
Tools for Tough Times

Whether they provide education, shelter, or cutting-edge research, nonprofit organizations are currently facing the perfect storm: a greater need for their services and evaporating (or nonexistent) reserves, worsened by funding cuts from all sides. In our recent nationwide survey, 1100 nonprofits told us about the extraordinary challenges they're facing. During 2009, 75% percent expect an increase in demand for their services. At the same time, 43% expect cuts in government revenue while 62% expect a decrease in foundation revenue. Only 12% expect to operate above break-even.

Without money and financial guidance in both good and bad times, these critical organizations can't keep their doors open. Here's what NFF is doing to make sure they continue to survive and thrive.

Here's How We Can Help

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Nonprofits face the need to cut expenses as a result of reduced revenue. NFF's tools are designed so that:

Nonprofits have the financial tools to plan effectively during years of economic uncertainty and beyond.
Short-term decisions leave nonprofits financially sound for the long haul.
Cost-cutting measures result in minimal program disruption.
Organizations prepare themselves to find new ways of operating in a changed economic and social reality.
High-performing and socially valuable organizations are not allowed to fail due to financial challenges alone.

NFF has spent 30 years creating a lending program and financial strategies and tools specifically for nonprofits and funders. We listen, give guidance on issues that are both immediate and long-term, and respond to the needs of the sector.

Our services are described below. 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. Our critical juncture financing provides access to capital. All of these in turn contribute to a sound platform for delivering on mission.

Click the items below for full descriptions of each service. For biographies of NFF's Tough Times Team, click here.

Introductory Services:

Recession Planning Webinar (90 minutes)
Recession Fundamentals Workshop (1/2 day)
Linking Money to Mission Workshop (1 day)
Financial Leadership Clinic (2 days)

Core Financial Planning and Strategic Management Support:

Financial Situation Analysis and Work Plan
Financial Reporting Assistance
Cash Flow Planning
Program Profitability Modeling (PPM)
Scenario Planning
Reports, Presentations, Communications Coaching

Long-Term Customized Engagements:

Loans
New Markets Tax Credits (NMTC)
Mergers, Collaborations, Strategic Re-alignment
Program-Related Investment (PRI) and Mission-Related Investment (MRI) Support
Growth or Change Capital Planning and Campaign Support

Recession Planning Webinar (90 minutes)
For organizations in need of preliminary guidance, this webinar provides an online crash course in assessing risk and financial planning.

Recession Fundamentals Workshop (1/2 day)
We provide nonprofit leaders with guidance and tools to manage through these challenging times. Topics include: assessing organizational preparedness; evaluating risk exposure and tolerance; identifying and quantifying options; and communicating financial stories to funders. We discuss tips on cash flow planning, access to credit, program profitability and scenario planning.

Linking Money to Mission (1 day)
This workshop helps managers and board members become more comfortable with: core concepts of nonprofit finance; techniques for interpreting financial statements and incorporating this data into decision making; and ways to explore business choices that help maintain organizational financial health in an unpredictable funding environment.

Financial Leadership Clinic (2 days)
In this two-day seminar, we work intensively with up to six nonprofits in a common sector. Combining recession-related topics, individual financial exercises, audit analyses, and peer-based learning, we coach participants in how to articulate their unique opportunities, challenges, and financial goals. This small-group peer learning format can be adapted to focus on the specific needs of a sector or cohort of organizations.

Financial Situation Analysis and Work Plan
In today's uncertain environment, 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 improve managers' and board members' ability to 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. We then create a customized work plan for each organization, providing services that best meet the client's particular needs.

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.

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.

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.

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.

Loans
NFF makes loans of up to $2 million for operating and capital needs. In the current credit squeeze, we can often step in where banks have pulled back, providing refinancing, extensions, and lines of credits to small- and mid-sized organizations that meet our lending criteria.

New Markets Tax Credits (NMTC)
NFF has been awarded $70 million in New Markets Tax Credits from the US Treasury Department, which we use to attract private investment for facilities in low-income communities. We are one of the few recipients using these credits exclusively to finance projects for nonprofits.

Mergers, Collaborations, Strategic Re-alignment
More and more, nonprofits are entering into alliances and mergers with other organizations to better fulfill a common mission. It's essential that nonprofits considering collaboration engage in thorough analysis and planning-from determining feasibility, to final implementation, to forecasting. We can guide nonprofits through every step of the process.

Program-Related Investment (PRI) and Mission-Related Investment (MRI) Support
In these times, some funders are considering low-interest lending programs such as PRIs, as well as MRIs. NFF provides underwriting, portfolio management, originations and seasoned advice that can enhance the efficiency and impact of a funder's new or ongoing PRI/MRI program. We can also analyze restructuring or workout options for borrowers who are experiencing difficulties with existing PRIs or MRIs.

Growth or Change Capital Planning and Campaign Support
Please click here for NFF Capital Partners.

SENIOR MEMBERS OF NFF'S TOUGH TIMES TEAM

Leon E. Wilson, Executive Vice President, Direct Services, has extensive experience in financial management, most recently as Executive Vice President and Managing Director of Philanthropic Investment Services at Bank of America. Since May 2005, Mr. Wilson has focused on meeting the financial needs of underserved consumers and small businesses through the establishment of First Financial Access Group, and Capital City Ventures.Prior to Bank of America, Mr. Wilson held the position of Executive Vice President of Fleet Financial Group's Charitable Asset Division. Earlier, he served as Corporate Senior Vice President of GMAC Residential-the holding company for GMAC Mortgage, GMAC Global Relocation Services, GMAC Home Service, GMAC Real Estate, GM Bank, Family First by GMAC and Ditech.com.Mr. Wilson has served on numerous professional and community boards, including The Bell Foundation, Boston University, Dimock Health Care, Fannie Mae's Regional Advisory Board, and is a Trustee of Cambridge College and The Boston Conservatory. Mr. Wilson completed advanced studies at Harvard Business School and the University of Virginia's Graduate School of Retail Bank Management. He holds an undergraduate degree from Boston University.

Norah McVeigh, Managing Director, Financial Services, is responsible for all aspects of NFF's financial products including lending, credit enhancement and asset-building products. She oversees the delivery of these products and manages NFF's credit process, loan and financial product portfolio, and staff training. She is also responsible for the capitalization of the loan fund. During her tenure, NFF's portfolio has grown from $3.8 million to $50 million, and has diversified both geographically and by product. During her tenure, in addition, to working capital loans and lines of credit, credit enhancement and asset building products and most recently New Markets Tax Credits have been added to the product line. Before joining NFF in 1993, she was Associate Director and a Loan Specialist for the Housing Development Fund in Stamford, Connecticut. Previously, she worked for International Voluntary Services, where among other positions, she administered a program in Ecuador that provided assistance to rural communities. Ms. McVeigh holds a Masters in Public and Private Management from The Yale School of Management and a BS from Georgetown University.

Tom McLaughlin, Director of NFF Consulting Services, joined NFF in 2009 after nineteen years as a nonprofit consulting specialist with two national accounting and consulting firms. Mr. McLaughlin has over 30 years of nonprofit experience as a nonprofit manager, trade association executive, and management consultant. Among his previous positions, Mr. McLaughlin served as an executive with two major Massachusetts social service agencies and as Associate Director of the Massachusetts Council of Human Service Providers. He is currently on the management faculty at the Heller School for Social Policy and Management at Brandeis University where he teaches mission-based management MBA and international development students. Mr. McLaughlin is a contributing editor for the Nonprofit Times, for which he writes a monthly column. He is also the author of Streetsmart Financial Basics for Nonprofit Managers; the third edition will be released in March 2009. Mr. McLaughlin also serves on the Board of Directors of the Massachusetts Council of Human Service Providers and has served on other nonprofit boards as well. Mr. McLaughlin is also a member of the New England Aquarium's Stranded Animal Emergency Response Team. Mr. McLaughlin is nationally recognized as an expert in nonprofit mergers and alliances, having consulted to nonprofits in over 200 such collaborations. He is also nationally recognized as an expert in nonprofit financial management and organizational restructuring.

Edward Sermier, Director, works with NFF on major product development and complex consulting assignments. Most recently, Mr. Sermier served as Vice President, Chief Administrative Officer and Director of Program Evaluation at Carnegie Corporation of New York. Mr. Sermier has deep and broad expertise-both by direct experience and by training-in nonprofit finance. During his distinguished career, he has served as Chief Financial Officer of the New York Philharmonic Orchestra; Deputy Director in the New York Mayor's Office of Operations for Mayor David Dinkins; Director of Strategic Planning and Capital Budgeting for the New York City Transit Authority; and Director of Special Education and Budget Director for the New York City Board of Education. Mr. Sermier teaches finance in the School of Public Affairs at Baruch College and he is President of the Executives On Campus organization at Baruch. He received his MBA from Columbia University and his BA in mathematics from Manhattan College.

Dione Alexander, Vice President, Midwest Region, joined NFF in 2006 as the Director of the Detroit office. She is responsible for managing and overseeing financial and advisory services throughout the Midwest and for marketing and fund development activities. Prior to joining NFF, Ms. Alexander spent six years as a Department Executive with the Charter County of Wayne, MI where she managed economic development and government finance. She also spent 10 years at Comerica Bank as Vice President of Commercial Lending. Additionally, Ms. Alexander has served as a business consultant under contract with the U. S. Department of Commerce, the U.S. Department of Defense, and Eastern Michigan University. Ms. Alexander is a graduate of the School of Business and Industry at Florida A & M University (B.S., Business Administration) and the Graduate School of Banking at Louisiana State University. Ms. Alexander has served on a various nonprofit boards.

Rodney Christopher, Vice President, National Customized Services, has played a prominent role in the development and delivery of NFF's advisory services, including our signature Nonprofit Business Analysis. As one of NFF's most broadly experienced team members, he divides his time between public presentations, custom engagements, client coaching, and staff training. Mr. Christopher's tenure at NFF spans 17 years, during which time he has been involved in a variety of NFF initiatives and special projects. He managed NFF's Nonprofit Recovery Fund, which raised and distributed over $10 million to help New York City nonprofits recover financially from the economic effects of September 11th. He represented NFF on the selection committee for the inaugural New York Times Nonprofit Management Excellence Awards, and has served on the boards of the Artists Community Federal Credit Union, Brooklyn Arts Exchange, Gay Men of African Descent, the New York Technical Assistance Providers Network, and the Simon's Rock Alumni Association. Mr. Christopher has an MS in Urban Policy Analysis and Management from New School University and a BA summa cum laude in Social Sciences from Bard College at Simon's Rock, which established a scholarship fund in his name in 2006 to help its students afford study abroad.

Anne Dyjak, Chief Credit Officer and Vice President, Financial Services, oversees credit quality nationwide, providing guidance to the Financial Services team in the underwriting and structuring of loans, management of credit risk, and servicing of NFF clients. Ms. Dyjak joined NFF in September 2005 after an extensive career in traditional commercial and consumer banking, most recently with Wachovia Bank and its predecessors, First Union National Bank and First Fidelity Bank. Other positions include regional Chief Operations Officer and Vice President in the Special Assets division of Wachovia Bank. She has extensive experience in analysis, strategic planning, risk management and organizational development. Her career has included responsibilities ranging from the origination and underwriting of consumer and commercial loans; management, collection and restructuring of portfolios of distressed loans and real estate; administration of a purchase and assumption agreement with the FDIC; and management of a five state region. She has also served as the Finance and Administration Director of a small nonprofit organization. Ms. Dyjak is active in community service and has served as the Chair of the NJ Sierra Club Inner City Outings youth outreach program, as the Chair of the Trailside Museum Association, and is a vocalist with the Deer Ridge Singers. She received her BS in Economics from Rutgers University.

Kristin Giantris, Vice President, Northeast Region, is responsible for managing and overseeing delivery of NFF's services and all marketing and fundraising in metropolitan New York and New England. Ms. Giantris' professional experience combines over 15 years of economic development and debt financing in both the nonprofit and for profit sectors. Most recently, Ms. Giantris was a Vice President at Citigroup Global Markets Inc., where she managed cross-border, US-dollar debt issuance for various financial, corporate and governmental clients. Prior to her time at Citigroup, Ms. Giantris served as a multi-country Program Officer in Washington, DC and as a Country Director in Albania for the nonprofit firm ACDI/VOCA, managing agribusiness technical assistance and small business development programs. Ms. Giantris earned a Masters Degree in Public Affairs from the School of International and Public Affairs at Columbia University and a BA in Political Science from Kenyon College.

David Greco, Vice President, Western Region, is responsible for managing and overseeing delivery of NFF's services and all marketing and fundraising for NFF's West Coast market. Prior to joining NFF, Mr. Greco served as Vice President of the Youth Leadership Institute and built YLI's national training and consulting services helping to bring youth and adults together to create more just and sustainable communities. For five years, Mr. Greco served as Senior Marketing Manager at Jossey-Bass Publishers where he launched a new social leadership publishing line focused on providing tools and resources for nonprofits and individuals engaged in social change. Mr. Greco has also served as the Corporate and Foundation Relations Manager for the National Wildlife Federation, and Director of Programs for the Horatio Alger Association working with economically disadvantaged youth. Mr. Greco is active in the community and serves in a number of volunteer positions including the Conservation and Energy Committees for the San Francisco Chapter of the Sierra Club, Global Exchange, and as a Board Member for MicroChange, working to link sustainable development and microfinance. Originally from Philadelphia, Mr. Greco earned his M.A. in Political Science from Villanova University and B.S. in History & Politics from Drexel University.

Garvester (Gar) Kelley, Vice President, Mid-Atlantic Region, joined NFF in January 2007. Mr. Kelley recently served as Senior Project Manager at Public/Private Ventures responsible for a multitude of projects including ex-prisoner reentry, youth violence prevention, and faith/community-based collaboratives. For the past 20 years, he has championed community economic development and individual economic self-sufficiency for marginalized people, both domestically and internationally. Mr. Kelley has served as a missionary for the Presbyterian Church (USA) in Eastern, Central and Western Africa. His service included coordination of educational programs, evangelism, community development, disaster assistance and hunger initiatives - all with an emphasis on empowerment, sustainability and local ownership. Mr. Kelley has 15 years of financial planning and management experience in the information systems, banking and telecommunications sectors. He earned his Bachelor degree in Finance from Hampton University, and the Masters of Divinity and Masters of Theology degrees from Princeton Theological Seminary.

Paul Bennett, Director of Analytics, joined NFF in August 2003. He works with individual clients on Nonprofit Business Analyses, performs nonprofit industry research, and develops financial analysis tools for NFF. He spent six years working in investment banking, financial management and financial journalism, including publishing articles in BusinessWeek and Money. Over the course of his career, Mr. Bennett has been involved with over 30 mergers and acquisitions as a buyer and advisor. Mr. Bennett received an MPA from Baruch College and a BA in economics from Binghamton University.

Brent Copen, Director, Western Region, is responsible for business development and management of NFF's advisory services (Nonprofit Business Analysis, workshops, and other consulting/educational services) on the West Coast. Previously, Mr. Copen was Projects Manager for a San Francisco-based juvenile drug treatment and education program and a consultant to nonprofits, providing guidance in the areas of board development, strategic planning, and financial analysis. He was also a faculty member at Teachers College, Columbia University, where he taught a graduate level course in nonprofit finance. Mr. Copen serves on the board of two nonprofit organizations that work with impoverished communities both domestically and abroad. Mr. Copen received an MPA from Columbia University.

Catherine Gill, Director, NFF Capital Partners, works with nonprofits and their funders to structure growth capital campaigns. Previously, as Site Director for NFF New England, Ms. Gill was responsible for advancing the office's financial and advisory service activities as well as NFF's advocacy agenda throughout the six New England states. Ms. Gill has also worked as a senior lender both at NFF and at SEEDCO, another Community Development Financial Institution headquartered in New York City. In these roles, she managed multi million dollar loan portfolios to nonprofits in every sector. In addition to her strong background in financial analysis, Ms. Gill brings her experience as a fundraiser for Columbia Business School and as a consultant on economic development projects in Honduras. She is currently a lecturer on nonprofit financial management at Boston University. Ms. Gill serves on the Board of Family Continuity, a community-based family support agency, and on the finance committee of On The Rise, a day shelter for homeless women in Cambridge, MA. She holds an MBA from IESE, Universidad de Navarra in Barcelona, Spain, and a BA from Wellesley College in Ancient Greek.

Rebecca Thomas, Director, National Advisory Services, oversees the development of NFF capacity to provide financial consulting activities nationwide that advise nonprofits and their funders in areas of financial planning and management. Responsibilities encompass product management and development, initiative design, staff training, and quality assurance. Before entering the nonprofit sector, Ms. Thomas served as Senior Economics Correspondent for Smartmoney.com, a personal finance magazine jointly published by Dow Jones and Hearst. At Smartmoney, she covered economic developments and financial markets, and appeared as a commentator on CNNfn, MSNBC, and Fox. She serves on the boards of the Rock School for Dance Education and Thirteenth Night Theatre, and participates on the Finance Committee of the Lark Play Development Center. Ms. Thomas received an MBA from Columbia University's Graduate School of Business and graduated from Yale University with a B.A in French and International Studies.

Last updated: 2009-11-30

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Read NFF's Free Guide to Navigating the Financial Crisis.

Transcripts from previous web chats: "Financial Management in Tough Times" by NFF and The Chronicle of Philanthropy available here.

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