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Nonprofit Management
May 19, 2023
As a nonprofit organization, it is essential to have a cohesive and productive team in order to efficiently achieve your mission and goals.
Read MoreAboutThe Benefits of Team Building Exercises for Nonprofit Employers
Nonprofit Management
March 28, 2023
America's charitable nonprofits serve and nurture people of every age, gender, race, and socioeconomic status—supporting at-risk communities nationwide.
Read MoreAbout[Webinar Recording] UST Live: Cybersecurity Risk Management
Nonprofit Management
March 16, 2023
Creating a positive culture in the workplace should be a priority for every nonprofit employer. A positive work environment can help increase employee engagement, morale, an...
Read MoreAbout5 Tips for Creating a Positive Workplace Culture
Nonprofit Management
March 02, 2023
While many foundations are well on their way with going mobile, start-ups and smaller organizations may still be trying to figure out how to establish a mobile presence in a...
Read MoreAboutThe Pros and Cons of Going Mobile
Nonprofit Management
December 20, 2022
No matter where society struggles or how much change comes to your nonprofit, everything always comes down to the people who form your team and support your community.
Read MoreAboutThe Changing Landscape of the Nonprofit Workforce
Nonprofit Management
December 16, 2022
From recruiting and training to engagement and retention, your organization has likely invested a great deal of time and effort into ensuring your volunteer program is succe...
Read MoreAbout[Webinar Recording] UST Live: Volunteer Management
Nonprofit Management
November 18, 2022
Some argue that they couldn’t prepare for the pandemic, because it was a black swan event—defined as unforeseeable.
Read MoreAboutImplementing Change to Build Resiliency
Nonprofit Management
September 30, 2022
In the latest rendition of UST Live, we were joined by thought leaders from across the U.S. with expertise in succession planning.
Read MoreAbout[Webinar Recording] UST Live: Succession Planning and Preparedness
Nonprofit Management
September 21, 2022
Working on a team requires more than just hard work, morale amongst co-workers, and willingness to work with others. The most important yet often ignored that attributes to ...
Read MoreAboutHow to Improve Communication Strategies with Your Team

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HR Knowledge
March 18, 2024
As a nonprofit leader, you know the importance of every dollar spent.
Read MoreAboutA Guide to Reducing Recruitment Costs as a Nonprofit
HR Knowledge
March 08, 2024
Question: Can I limit the number of times an employee makes changes to their W-4?
Read MoreAboutHR Question: Managing W-4 Changes
HR Knowledge
February 23, 2024
Creating an employee handbook provides a cornerstone reference guide for an organization.
Read MoreAboutCreating An Employee Handbook for Nonprofits  
HR Management
January 22, 2024
Professionals in the nonprofit sector are often more motivated by the mission over a high salary and interested in pursuing leadership roles that enable them to make a bigge...
Read MoreAboutHow To Improve Leadership Skills in Your Nonprofit  
HR Knowledge
January 12, 2024
When it comes to running a nonprofit organization, one of the most important aspects is creating a productive and safe workplace for your employees.
Read MoreAboutThe Top 5 Benefits of Building a Human Resources Department in a Nonprofit Setting
HR Knowledge
January 05, 2024
Question: Are there any questions we should avoid when interviewing job candidates?
Read MoreAboutHR Question: Questions to Avoid When Hiring Job Candidates
HR Knowledge
December 21, 2023
Nonprofit organizations improve communities by providing impactful services, including everything from educating, sheltering, healing, nurturing and so much more.
Read MoreAbout How To Recruit and Hire for Nonprofit Internships
HR Knowledge
December 18, 2023
Our world continues to progress and it has become increasingly important for organizations to prioritize Diversity, Equity, and Inclusion (DEI) awareness.
Read MoreAbout5 Practical Ways for Nonprofits to Develop a Culture of DEI Awareness

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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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