With the impact of COVID-19 and as nonprofit organizations work to determine how they will continue to provide their services to those much needed individuals in our community, cash flow management is critical to help keep the organization financially stable.  Particularly, for those nonprofits that do not have healthy operating reserves, not only will cash flow management continue to be the focus of the executive director, CFO, finance committee members, and the board of directors but for all managers in nonprofits, even non-financial managers will need to be involved to face upcoming challenges.  To follow are a few cash flow management tips that your Organization may benefit from considering if you are not already doing so:

Cash flow management tips for Nonprofits:

  • Budget: Is your budget up-to-date considering the recent changes in operations?
  • Delay expenses: Can your Organization hold off on replacing certain equipment or other capital expenditures (for example new computers) that was planned for this year?
  • Cut expenses: Are there programs that your Organization was looking to stop later this year?  Can those programs be cut now?
  • Newsletters: Does your Organization send paper newsletters (i.e. printing costs, postage, etc.)?  If so, is now the time to move to electronic newsletters?
  • Donors: Is your Organization being transparent with its major donors so they understand the impact COVID-19 may have financially on your Organization?  (This gives your loyal donors a chance to step up and help during this time of need).
  • Multiple-year Pledges: Has your Organization reached out to donors with multiple-year pledges to thank them again and ask if they would be willing to pay next year’s commitment now?

 

All individuals in the nonprofit that have responsibility for decision-making will be vital to the organization’s ability to respond to financial challenges that may occur.  Leaders in the organization will need to ensure good communication and possibly additional training to their staff as they address financial challenges/problems and face the tough decisions about how to best carry out their programs to meet the needs of those they serve in our community during these times of uncertainty.

How does Briggs & Veselka help Nonprofits?

Briggs & Veselka helps over 300 not-for-profits with their tax and audit work per year. From Form 990’s to strategic consulting services, we provide a holistic approach to ensuring your organization’s success.