Does a diversified revenue base make for a more profitable—and therefore sustainable—nonprofit? Does government funding create big financial problems? Does owning a facility improve an organization’s financial health?
See ResourceThe Matrix Map is a visual tool that plots all of the organization’s activities—not just its programs—into a single, compelling image. By illustrating the organization’s business model—through a picture of all activities and the financial and mission impact of each one—it supports genuinely strategic discussions.
See ResourceIn addition to grants, foundations have been increasingly using Program Related Investments, or PRIs, to support nonprofits. PRIs can be a powerful tool to support foundation and nonprofit missions, but they only fit some projects. Understanding their value and uses can be useful for both foundations and nonprofits.
See ResourceFinancial decisions can be only as good as the data and analysis they are based on. The tools in this section will help you look at your financial information with an eye toward strategic decision making to help your organization carry out its mission over the long term.
See ResourceIn recent years, the concept of the “business model” has gained a great deal of currency within the nonprofit sector, with nonprofit leaders as well as grantmakers and other stakeholders focused on understanding and improving the business and financial underpinnings of how organizations deliver on their missions.
See ResourceOnce you have completed your annual budget process, these tools can help your team translate your newly minted operating budget into a detailed cash flow projection over the course of a fiscal year.
See ResourceMany nonprofits know that they should be building reserves over time, but find it hard to do so without hobbling their work. Perhaps with a better understanding of full costs, we should all be educating funders about their responsibilities in that regard. Here’s a way for readers to approach the endeavor.
See ResourceTake the test below—but be careful; it is more difficult than it seems. Then, read for yourself how our shadow universe compares to the “rational” and “time-honored” ways of the for-profit sector.
See ResourceWhen you use the word capital in the nonprofit sector, you must take the time to define your terms, because so far there is no thorough understanding of the structures of financial capital inside nonprofits.
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