Cash Flow in the Nonprofit Business Model: A Question of Whats and Whens
This article from the fall 2017 edition of Nonprofit Quarterly by Hilda Polanco and John Summers covers the “whats and whens” of cash flow management for nonprofit organizations:
“Discussions of the nonprofit business model often include considerations of things like cost to deliver services, mix of sources of funding, and key drivers of financial results. Discussions of financial stability and sustainability often focus on the overall health of the balance sheet and (accrual-based) operating results. While these are all essential elements to understanding an organization’s finances and business model, such conversations sometimes miss one critical component of any business—namely, day-to-day liquidity. This article will discuss ways in which cash flow impacts—and is impacted by—the way a nonprofit organization does its business.”
