Lesson 1 – Elements to include in your financial plan

A nonprofit financial plan outlines goals and milestones for funding support from businesses, donors and grants. It includes a description of primary expenditures for programs necessary to fund and run the organization. It also includes an effective communication system to report fiscal data to the board of directors, ensuring the ongoing health of the organization.

Below are some elements to include in executing your financial plan:

  • Built-in assumptions: Take into account the economy with and without a major recession.
  • Projected surplus or deficit: This consists of monthly, yearly surpluses and deficits.
  • Projected cash flow: This shows gross and net cash flows for monthly and yearly revenue.
  • Projected balance sheet: Shows managed growth of net worth and financial position.
  • Standard ratios: Demonstrated ratio analysis of Toal assets and Toal liabilities.