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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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The Importance of Understanding Your Nonprofit's Cash Flow

Understanding the concept of the “business model” for your nonprofit has become a more integral component to maintaining organization sustainability within the nonprofit sector. Nonprofit leaders, grant makers and stakeholders want more insight behind the business and financial foundation of how a nonprofit organization is able to deliver according to their mission drive initiatives.

When discussing the nonprofit business model, often times it will include topics such as, cost to deliver services, mix of sources of funding, and key drives of financial results. Discussions around the financial stability and sustainability, more times than not, focus on the overall health of the balance sheet and operating results of a nonprofit. While each of these are essential components to have a better understanding of an organization’s finances and business model, these types of conversations can lose sight of a critical part of any business—the day-to-day operations. For example, the way a nonprofit organization does business can have a major impact on cash flow.

Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a nonprofit’s ability to create value for shareholders in determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow. Managing cash flow is primarily consisted of questions: when will we pay our staff; when is this bill due and when will this grant payment come in? While there are variety of nonprofit business models, each one has a particular bearing on these types of questions.

A nonprofit business model has two main components: what kinds of programs and services nonprofits deliver, and how they are funded. Each of these components have implications on organizational cash flow that should be understood in order to have effective financial planning.

Below are a few helpful strategies to use when addressing cash flow issues:

1) Understand where funding is coming from: Each type of income stream can have certain implications and challenges for cash flow, so if a business model is built primarily around one type of funding, you will need to understand and plan for those implications and challenges.

2) How to balance cash going in and out: In order to meet operating cash needs in the absence of adequate cash reserves, a nonprofit can turn to a line of credit to meet the temporary imbalance between available cash and expenses due. Credit lines, when used responsibility, can be a useful and vital tool for cash flow management.

3) How to manage cash across your organization: While it may be impossible to ensure that cash is coming into the organization exactly on time and on target to keep things on autopilot, it is possible to plan for those times when it isn’t, and make decisions to be sure that bills and staff are paid on time.

Being informed, strategic, and collaborative in cash flow management can help to ensure that a nonprofit’s long-term strategy isn’t hindered by avoidable and short-term obstacles.  

For more information on this topic, please reference this article: https://www.propelnonprofits.org/resources/managing-cash-flow/

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