After a strategic planning session, nonprofit organizations have told me they spend based on a planned budget, while others have said their spending is income-based. In other words, they do not over-spend income. I wonder how nonprofits manage cash flow in turbulent times. Do nonprofits create a surplus reserve to be drawn down when needed, have pre-established lines of credit, or do they have some other approach? What do you think are the best practices for spending and for cash flow management?
Posted by Jerry Stai, NRS, Minot
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