Nonprofits Count

From this issue

We all know that local conditions vary. There are many factors that impact your nonprofit, such as your funding sources, field of service, and the needs of your constituents. The Minnesota Council of Nonprofits and Minnesota Council on Foundations have updated information on how the economy is affecting funders and Minnesota nonprofits in general. The most useful information is what is happening on the ground at your nonprofit - the "hyperlocal" conditions. As Kate Barr says in the Winter 2010 issue of Nonprofit Quarterly:

"In all forecasts, 'local conditions vary,' and the most relevant information is the situation at an individual nonprofit organization. Only by clearly understanding its own financial position, strengths, and risks can a nonprofit develop strategies to respond to the economy and plan for the future."

Assess Your Nonprofit's "Hyperlocal" Conditions

How can you get a handle on these conditions? Our Assessment of Recession Risk and Preparedness for Nonprofit Organizations is a tool designed to help you quickly assess your organization. By answering these 20 questions, you will identify potential risk factors, immediate priorities, and proactive steps to take right away.

This tool is designed to lay the groundwork to help your organization take action when necessary. It is first step, not an in-depth organizational assessment. Whatever your starting point, the Recession Preparedness Assessment provides useful information to help you develop strategies and approaches to respond to the economy and plan for a sustainable future.

Operating Reserves

One way that nonprofits have been coping with uncertainty in their income streams while continuing to deliver services is taking advantage of operating reserves. An operating reserve is an unrestricted fund balance set aside to stabilize a nonprofit's finances by providing a cushion against unexpected events, losses of income, and large unbudgeted expenses. They can help you weather serious bumps in the road by buying time to implement new strategies.

To help organizations think through how to prudently manage their reserve funds, we have created an Operating Reserves Overview and Policy Example. This resource will help you assess when using reserves make sense, consider how to replenish reserves, understand different types of reserves, and begin crafting a policy that makes sense for your organization.

Continue reading the February 2010 issue of Nonprofits Count to learn more about our new partnership with MCN, upcoming training opportunities, and how we can help your organization.