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Nonprofit Management
May 20, 2022
Here at UST, we aim to create content designed to educate 501(c)(3) nonprofit leaders and strengthen the nonprofit sector. As part of our on-going commitment to serve nonpro...
Read MoreAboutOn-Demand Webinars: HR Strategies and Risk Management Tactics
Nonprofit Management
March 04, 2022
In the latest rendition of UST Live, we were joined by thought leaders from across the U.S. with expertise in nonprofit advocacy.
Read MoreAbout[Webinar Recording] UST Live: Advocacy & Legislative Support for Nonprofits
Nonprofit Management
February 10, 2022
The grantmaking process is often exclusive and expensive, making it accessible to those select nonprofits with the right expertise and networks, which can be costly for orga...
Read MoreAboutFour Ways to Create an Equitable Grantmaking Process
Nonprofit Management
January 27, 2022
Today's increasingly virtual landscape—along with the workforce's evolving strategic priorities—has not only changed how we work, but i...
Read MoreAboutEmployee Engagement and Nonprofit Brand Strategies
Nonprofit Management
January 24, 2022
Members are a vital key to success when sustaining and growing your association and retaining those members ensures a long-term survival of your nonprofit organization.
Read MoreAboutFive Best Practices to Improve Nonprofit Member Retention
Nonprofit Management
December 09, 2021
Nonprofit managers are relied upon to not only lead productive teams, hold employees accountable, and manage processes but are also expected to engage and motivate employees...
Read MoreAbout2021 Nonprofit Leadership Toolkit
Nonprofit Management
November 19, 2021
Whether you’re aspiring to be an executive leader, get promoted into a director’s position, or even launch your own nonprofit—rarely there are clearly defined pat...
Read MoreAboutHow to Grow into a Nonprofit Leader
Nonprofit Management
October 28, 2021
A strong leadership team is vital to the success of any nonprofit organization—without it you risk reduced productivity, delayed decisions, and low morale.
Read MoreAbout2021 Employer Guide: Nonprofit Leadership Development
Nonprofit Management
October 14, 2021
As employers continue to strategize for the future—paving the way for flexible work models and creative retention tactics—many are seeing permanent cha...
Read MoreAbout2021 Nonprofit Workforce Trends Infographic

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HR Knowledge
August 12, 2022
Question: What are effective ways to manage remote employees and monitor their work? 
Read MoreAboutHR Question: Managing Remote Employees
HR Management
July 21, 2022
A major shift has been underway, fundamentally altering, when, where, and how work occurs. As organizations adjust to today’s new hybrid workplace, collaboration among team ...
Read MoreAboutFive Tips for Successfully Leading a Hybrid Workforce
HR Knowledge
July 15, 2022
As of early 2020, the nonprofit employment sector is reported to be the third largest in the nation, following manufacturing and retail. Job statistics will no doubt remain ...
Read MoreAboutHire and Develop Managers People Want to Work For
HR Knowledge
July 08, 2022
Online trainings can be a useful tool for developing talent, but they can also end up being a waste of time and resources, even if the content and presentation are good.
Read MoreAboutHR Question: Ensuring Your Online Training Strategies Are Effective
HR Knowledge
June 30, 2022
Without the staff to support your mission-driven initiatives nonprofits across the globe wouldn’t exist.
Read MoreAboutCelebrate Success in the Workplace to Increase Engagement
HR Knowledge
June 24, 2022
Employees are the backbone of every nonprofit and your most valuable asset—contributing to the overall success (or failure) of your organization.
Read MoreAboutHow to Help Employees with Career Development
HR Knowledge
June 17, 2022
Modern benefits are indeed useful for retention but that is not the whole story. To be fully engaged, nonprofit employees need to feel they have a say in what goes on at wor...
Read MoreAboutSolicit Involvement for Employee Engagement Initiatives
HR Knowledge
June 10, 2022
In this post, we’ll take a look at where we are today, how we got here, and what you can do to help your staff cope with that wild and wicked ride known as STRESS.
Read MoreAboutStress in the Workplace: How is it Affecting Your Employees
HR Knowledge
June 03, 2022
An employee says that the stress of the job is affecting their mental health. How should we handle this?
Read MoreAboutHR Question: Stress on the Job
HR Knowledge
May 26, 2022
If you haven’t experienced it, consider yourself lucky. Most of America’s workers have, at one time or another, faced problems with a toxic workplace culture.
Read MoreAboutCreating a Unified Company Culture

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Creating a Cash Flow Business Model for Your Nonprofit

Using a business model has grown to become an essential tool when making any business or financial decisions within the nonprofit sector. When incorporating a new business model, a few key components should be discussed to ensure the business model will not only provide financial stability but also further the growth of operations within your organization. Along with understanding the financial side of a new business model, it is important to factor in the daily tasks that occur in a business, including cash flow—money being transferred in and out of an organization. 

Cash flow can be simply defined as a movement of money within the organization’s accounts. It is where the numbers and financial reports show how the money has moved and how it’s been accounted for. When managing cash flow, the question you will be asked repeatedly is “When?” —when do you pay your staff, when will you be receiving a grant payment or  when is a particular bill due. And while all nonprofit business models are different in one way or another, they all rely on the “when” with the movement of money. 

When creating a nonprofit business model, there are two main components to factor in—what kinds of programs and services does your nonprofit offer to the community and most importantly, how are they funded. Each of these components require the understanding of organizational cash flow in order to have effective financial planning. To further understand what kinds of programs and services a particular organization offers, you would look at where and how money is being spent.

When looking at how an organization is funded, this can provide a better understanding of what’s to come in terms of cash coming into the business. If by chance the cash flow doesn’t quite match up with the services offered, this could be further explained by how the organization receives its funding. Each type of income varies based on certain implications and challenges for cash flow, so if a business model is built primarily around one type of funding, this will have to be factored into the structure of the business model.

Creating a smart and strategic business model requires you to be informed and collaborative in cash flow management. This will ensure that your nonprofit’s long-term strategy isn’t hindered by obstacles that could have been avoided. 

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