Alex
Forum Replies Created
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These are difficult questions, particularly with so much uncertainty around funding and tax policy. Scenario planning can at least give the board something concrete to discuss. I would look at a best case, middle case, and difficult case rather than trying to predict everything. Regular budget reviews also make it easier to adjust when circumstances change.
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Hello Donald, welcome to the community. Your calculation looks right to me. It follows the standard approach to calculating Liquid Unrestricted Net Assets, with the focus being on resources that are genuinely available for use. You are taking out restricted funds and less liquid assets such as buildings, while accounting for the related debt. The result gives a clearer picture of the resources the organisation can access. I think of it as the financial cushion for a rainy day.
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The main risk is that these unusually favourable arrangements can disappear when local politics or budgets change. An organisation could then face the rather awkward task of finding affordable space at short notice. I would keep a small reserve fund for that possibility and make sure the agreement includes clear termination terms. Maintaining relationships with alternative venues is also worth considering.
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Local accounting firms, retired finance professionals, and business networks can be good places to look. Many professionals are willing to contribute their expertise when the cause aligns with their interests. I would clearly explain the role, responsibilities, and expected time commitment before approaching candidates. Local nonprofit associations, Chambers of Commerce, and LinkedIn can also broaden the search considerably.
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From what I have seen, seven years is often used for financial and tax records, although requirements can vary. Childcare records can be a different matter, particularly attendance, health information, and staff documentation. I would separate governance and financial records from student and personnel files. Keeping properly organized digital copies with a second backup could also make storage far less awkward.