CompassPoint intensifies the impact of fellow nonprofit leaders, organizations, and networks as we achieve social justice together.
Pair Interview (5 minutes each) 1. Last year, did your organization generate more financially than it consumed? 2. Why or why not? How? 3. What do you expect for the current year? Why?
Personal Reflection (5 minutes) How sustainable is your organization today? 1 2 3 4 Unsustainable Very Sustainable Why (3 key reasons)?
Organizational Financial Health Revenue Mix Full Cost of Effective Programs Infrastructure Capital Structure
Personal Reflection (10 minutes) Reflect on your intended impact(s) statements created yesterday. What types of capital are you using? What types of capital do you need more of to drive impact?
Pair’s Exercise (5 minutes each) 1. Take out your income statement and/or annual budget. 2. Help each other determine the LARGEST and SECOND LARGEST types of income. 3. Calculate the % of TOTAL income that each type makes up.
Financial Health How much surplus will you generate this year? COMPASSPOINT EXAMPLE: unrestricted: $197,591 (operating surplus) temp restricted: ($1,029,246) total: ($831,655)
Financial Health How liquid are your assets? Is your quick ratio comfortable? COMPASSPOINT EXAMPLE: cash $1,427,726 accounts payable $360,410 = 3.96
Financial Health How many months of unrestricted cash do you have? COMPASSPOINT EXAMPLE: URNA – fixed asset $144,055 annual expense /12 $328,938 = 0.4 months
Personal Reflection (15 minutes) Assess your own financial statements: • Surplus or deficit? • Quick ratio? • Unrestricted cash reserve?
Personal Reflection (10 minutes) • What’s not in your budget this year that should be given your intended impact statement(s)? • What’s not in your budget this year that should be given your organizational values? • How will you adjust your budgeting process next time?
Small Group Discussion (8 minutes total) Each person share one big idea about budgeting that they plan to act on as ED in the coming year.
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