Financial Planning, Management & Sustainability
Financial planning is the strategic process of managing business finances to achieve financial goals, which can include aims such as paying off debt and long-term growth and/or expansion. In this section, the following resources focus on budgeting, forecasting, financial sustainability, and readiness for funding or service delivery.
Key areas to consider:
Monitor performance regularly: Review your financial performance consistently to stay on track and make necessary adjustments.
Forecast future revenue: Analyze historical data and current trends to project future income and anticipate growth opportunities by modeling “what if” scenarios to support proactive decision-making.
Strategic Budgeting: Develop realistic budgets that align with organizational goals, include contingency planning, and balance short-term needs with long-term priorities.
Cash Flow and Liquidity Management: Monitor inflows and outflows carefully. Maintain reserves or emergency funds to handle unexpected downturns.
Optimize revenue cycle management: Streamline billing processes and work to minimize claim denials to ensure timely and accurate payments.
Diversified Funding Sources: Avoid overreliance on a single donor, client, or revenue stream. Build resilience by mixing grants, earned income, investments, and partnerships.
Understand payer models: Be familiar with specific billing codes, reimbursement guidelines, and state regulations for different public and private payers.
Resources
A list of best practices small and medium-sized organizations can adopt for sound nonprofit finance management.
Financial Best Practice Checklist for Nonprofits | GAR Foundation
A list of best practices small and medium-sized organizations can adopt for sound nonprofit finance management.
StrongNonprofits Toolkit | Wallace Foundation
Comprehensive financial management tools for nonprofits, including budgeting, cash flow, and dashboards.
Fundamentals of Nonprofit Financial Sustainability | Bridgespan
Offers articles, tools, and templates to help organizations build funding strategies, conduct cost analysis, and align financial planning with mission-driven work
Fundamentals for Nonprofits | Nonprofit Finance Fund
Offers a progressive curriculum with tools for budgeting, cash flow, scenario planning, and financial storytelling
Financial Management | National Council of Nonprofits
Guidance on fiduciary duties, board oversight, and the adoption of financial policies.
Financial Sustainability Check-Up | Social Impact Architects
A self-assessment tool can help you focus specifically on financial management practices.
This toolkit is for informational purposes only and does not constitute financial, legal, or tax advice. Organizations should consult their own qualified advisors before implementing any strategy or recommendation contained herein. InUnity Alliance makes no warranties regarding the completeness or suitability of this material and assumes no liability for outcomes resulting from its use.