A comprehensive, long-range PLAN that provides a roadmap to successfully meeting the organizations strategic, mission-driven financial objectives.

1. Building a Financial Sustainability
Plan
Reginald Walker and
Associates
By: Reginald Walker, MBA

2. What is a
Financial
Sustainability
Plan?
A comprehensivelong-range PLAN that provides a road
map to successfully meeting the organizations strategic
mission-drivenfinancial objectives.

3. Why is a Financial SustainabilityPlan (FSP)
Important?
An FSP assures the organization's ability to continue to fund its missionby:
• Proactively addressing organizational weaknesses and threats
• Providing Managementand Board a tool to measure and benchmark success
• Securing the future through deficit reductionand risk management

4. REVIEW HISTORICAL DATA
ASSESS THE CURRENTSITUATION
SWOT ANALYSIS
WEAKNESSES
THREATS
DEVELOP STRATEGIC
OPTIONS TO ADDRESS
WEAKNESSES AND
THREATS
DETERMINETHE MOST
FEASIBLE OPTIONS
FINANCIAL
SUSTAINABILITY PLAN
BASED ON 4 PILLARS
LONG-RANGE BUDGET
Overview of a
Financial
Sustainability
Planning

5. Review Historical Data
• How have your
programs/initiatives evolvedand
changed?
• Who have your funders been and
what have they funded?
• How much have they funded and
for how long?

6. ReviewHistorical Data
• What other revenue streams have
you developed?
• How fast or slowly did they
develop?
• Which programs thrived and
which are no longer operating?

7. ReviewCurrent
Situation
• Strengths – Internal capacities
• Weaknesses – Internal needs
• Opportunities – External openings
• Threats – External challenges

8. UNDERSTANDYOUR INTERNALCAPACITIESAND
PLOTIN THE SWOTFRAMEWORK
What INTERNAL organizational capacities represent
Strengths or Weaknesses related to achieving our
objectives? Examples include:
• Human Resources and expertise
• I.T. infrastructure/hardware/software
• Digital Marketing/use of social media/website
• Assets (Liquid and Fixed)

9. What EXTERNAL environmental conditions
represent opportunities or threats related to
achieving our objectives? Examples include:
• Organizational brand community acceptance
• Government regulations (Tax Code)
• General economic conditions
• State and local budget conditions
UNDERSTANDYOUR EXTERNALENVIRONMENT
AND PLOTIN THE SWOTFRAMEWORK

10. DEVELOP OPTIONSFORADDRESSING
WEAKNESSESAND THREATSTO
ACHIEVING FISCALSUSTAINABILITY
• Achieve your objectives with none of the
resources
• Achieve your objectives with a few of the
resources
• Achieve your objectives with different
resources

11. FSP PILLAR# 1 WhatEffectiveRevenue
ManagementMethodsHaveWeUsed
andHow do We Maintainthat?
• EffectiveDonor management
• Effectivegrant management
• Effectivecontractcompliance
• Expectedprogram outcomes
• Effectiveand regular pricing reviewfor fee for serviceand
miscellaneousrevenue

12. FSP PILLAR# 2 What PolicyChangesor New
Policies(That FacilitateEffectiveCost
Management)CanWe Initiate?
• Shared Services
• Outsourcing
• Programmaticjoint venturing
• Use of cloud computing/telecommuting/hoteling

13. FSP PILLAR # 3 What Steps Can
We Take to Reduce M&G?
• Look for intradepartmentalreorganizationopportunities to
eliminate lowvalueactivities
• Outsourcelower value activitiessuch as facilitiesmaintenance
bookkeeping and I.T. maintenanceservices
• Look for cooperativebuying serviceprovidersthat offer savings
based on the combined spending of multipleorganizations
• Seekways to becomemore energyefficientby purchasing
energyefficientbulbs, solar panels and shutoff timerson lightsin
unused rooms

14. FSP PILLAR # 4 How Do We
ManageRisk and Position To
Seize Future Opportunity?
• DiversifyRevenueStream
• Implement online giving
• Seek ways to expand service offerings
• Investreservesto generate interest/dividendincomeon
reservesand/or endowmentsprincipal
• Build a Quasi Endowment or Board Restricted Reserve
• Budget Programsto generateoperatingsurpluses and
reinvestin your reserve
• Hold a capitalcampaign to establishan endowmentand
fund program expendituresaccordingto a predetermined
policy