Managing Finances in Turbulent Times

Kate Barr, Executive Director of the Nonprofits Assistance Fund gave a presentation this summer to nonprofits in the Fergus Falls area entitled "Managing Finances in Turbulent Times."

There were a couple things I took away from that training that I thought were very helpful. She suggested doing an income trend analysis – displaying a pie chart that depicted the various income streams and the percentage of the budget it made up. It was a powerful visual and enabled us to see how income streams compare to each other. It appeared to be a good tool to help boards as they do their own analysis – and consider how they may need to change their mix in these difficult times.

Another tool is the - Assessment of Recession Risk and Preparedness for Nonprofit Organizations. It is a tool that boards can use for a quick assessment in four essential areas – Financial Health; Financial Information; Organizational Change and Leadership Engagement. The rating and guidance provided on the form can help nonprofits in their discussions about setting priorities and how to develop plans to weather these difficult times. The assessement is a starting point to indicate level of urgency and priority and is downloadable on the Nonprofits Assistance Fund website.

Holly Witt, NRS, Alexandria Charter