Balancing the Mission Checkbook

At Nonprofits Assistance Fund we frequently talk with managers of nonprofit organization that are facing cash flow shortfalls. It’s really common that the of timing income and expenses gets out of sync.  Income is received according to grant, contract, and contribution cycles, which are often irregular. Meanwhile, payroll and rent payments have to be paid very regularly.  While this is an everyday topic for our staff, cash flow problems cause concern and worry at the nonprofits that are feeling the pinch.

To all those nonprofits, current news reports can help you understand that cash flow is important for every nonprofit, business, and even government.  Large businesses are scrambling to obtain short-term cash from borrowing through what’s known as commercial paper.  Over the weekend, the state governments of both Massachusetts and California notified that US Treasury Department that they might need short-term cash flow assistance. These are big numbers, too. Next time your nonprofit needs some help in tiding over a cash flow dip, take heart. You’re in good company, and this is a day to day reality for any organization.

If you are interested in assessing your organization’s cash position, you can download our Cash Flow Template to make your own cash flow projection.