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Truth or Consequences: The Implications of Financial Decisions
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?
The Matrix Map: A Powerful Tool for Mission-Focused Nonprofits
The 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.
How PRIs Work: A Basic Primer for Nonprofits
In 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.
Rules of Engagement
Welcome to the Nonprofit Financial Commons! Our mission is to provide relevant and accurate content in a welcoming and supportive community to nonprofit financial leaders. …
StrongNonprofits Data and Analysis Toolkit
Financial 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.
Cash Flow in the Nonprofit Business Model: A Question of Whats and Whens
In 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.
StrongNonprofits Cash Flow Toolkit
Once 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.
Keeping It in Reserve: Grantmaking for a Rainy Day
Many 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.
The Looking-Glass World of Nonprofit Money: Managing in For-Profits’ Shadow Universe
Take this true/false test—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.
How to Think Differently about Your Money: Capital Explored
When 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.