As museums adjust to ever-changing economic realities it is essential to have a few tricks up your sleeve in regard to understanding and analyzing budgets and finances. How can you recognize the warning signs that your organization may be headed for trouble? What do directors, development professionals, and managers need to know about finance in order to steer clear of danger and maintain a healthy operation? This interactive session addresses these questions with specific tools of the trade.
Moderator: Marjorie Schwarzer, Administrative Director, Museum Studies, University of San Francisco
Presenters:
Dr. Robyn Raschke, Associate Professor of Accounting, University of Nevada, Las Vegas
Deborah Frieden, Principal, Deborah Frieden & Associates, Oakland, California
Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy.
This half day workshop covered institutional strategic planning, project planning leading to comprehensive campaign components, and planning for your fundraising office
Afundraisingstrategyisaplanthatsetsoutthefundingneedforanorganization,projectorevent,alongsidetheidentifiedactions,timescalesandpossiblefundingresourcestomeetthisneed.
Why develop a fundraising strategy?
Itiscommonlyrecognizedthatbetterplanninghelpstoavoidwastedtimeandresources.Thedevelopmentofafundraisingstrategyshouldenablethepeopleinanorganizationtoensurethat:
•Thereisasharedunderstandingoftheaimsandprioritiesfortheorganization
•Theagreedprioritiesarea‘goodfit’withwhattheorganizationissetuptodo
•Theagreedprioritiesaresetclearlykeepinginscopeandcompetitions
•Setsouthowthoseprioritiesaregoingtoberealized
How would a strategy help in implementation?
Thisisincreasinglyimportantatatimewhenthereisuncertaintyaboutfunding;awelldevelopedfundraisingstrategywillhelpto:
•Provideclarityabouttheorganization'saims/priorities
•Ensurethattheprioritiesarerealisticandachievable
•Ensurebettertargetingoffunders
•Ensurethehighestpossibilityoffundingsuccess
•Encourageasharedresponsibilityforfundraising
•Strategyisaclearmonitoringframework
•Clearlydefinestheexpectationsandroles
Steps while writing a Fundraising Strategy
•Revieworganization'scurrentfundingsources
•Revieworganization'saimsandpriorities
•Determineorganizationalfundingneeds
•KnowtheFundraisinggoalandobjectives
•Whoallcangive;anddecideonhowtoreachthem
•Whowillraisefunds?
•Planorganization's/project’sfinancesforsupportingfundraisingandforwhatspan
•What'sthetarget/timeline/activityplan
•DoaSWOTfortheorganizationtohaveclearperspective
Things you must include in the strategy
•A case statement for the organization to get active in fundraising
•Competition
•Define the needs; products/projects/activities/campaign etc.
•Identification of Prospects
•Tactics and Channel Selection
•Identify Income Targets
•Budget-Expenditure and Income Projection
•Calendar
•Staffing
•Information Management
•Policies & Procedures
•Risks involved
Coming together of Strategy and Implementation
•Regularly review the strategy
•Build strategy up‐dates into monthly/quarterly meetings
•Identify key milestones for the plan to measure progress
•Circulate the plan to new team members; they can add new dimension to the existing plans.
What resources are needed to develop a fundraising strategy?
•People ‐Committee members/staff
•Dedicate Time
•Plan a timetable for completion before the process begins
•Commitment to the process and belief
•A nominated person/s to guide the group through the exercises or an external facilitator
•A nominated person/s to collate the section write ups and finalize the plan which will form the basis of the strategy
•The guide will only be as useful as the information which is put into it
Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy.
This half day workshop covered institutional strategic planning, project planning leading to comprehensive campaign components, and planning for your fundraising office
Afundraisingstrategyisaplanthatsetsoutthefundingneedforanorganization,projectorevent,alongsidetheidentifiedactions,timescalesandpossiblefundingresourcestomeetthisneed.
Why develop a fundraising strategy?
Itiscommonlyrecognizedthatbetterplanninghelpstoavoidwastedtimeandresources.Thedevelopmentofafundraisingstrategyshouldenablethepeopleinanorganizationtoensurethat:
•Thereisasharedunderstandingoftheaimsandprioritiesfortheorganization
•Theagreedprioritiesarea‘goodfit’withwhattheorganizationissetuptodo
•Theagreedprioritiesaresetclearlykeepinginscopeandcompetitions
•Setsouthowthoseprioritiesaregoingtoberealized
How would a strategy help in implementation?
Thisisincreasinglyimportantatatimewhenthereisuncertaintyaboutfunding;awelldevelopedfundraisingstrategywillhelpto:
•Provideclarityabouttheorganization'saims/priorities
•Ensurethattheprioritiesarerealisticandachievable
•Ensurebettertargetingoffunders
•Ensurethehighestpossibilityoffundingsuccess
•Encourageasharedresponsibilityforfundraising
•Strategyisaclearmonitoringframework
•Clearlydefinestheexpectationsandroles
Steps while writing a Fundraising Strategy
•Revieworganization'scurrentfundingsources
•Revieworganization'saimsandpriorities
•Determineorganizationalfundingneeds
•KnowtheFundraisinggoalandobjectives
•Whoallcangive;anddecideonhowtoreachthem
•Whowillraisefunds?
•Planorganization's/project’sfinancesforsupportingfundraisingandforwhatspan
•What'sthetarget/timeline/activityplan
•DoaSWOTfortheorganizationtohaveclearperspective
Things you must include in the strategy
•A case statement for the organization to get active in fundraising
•Competition
•Define the needs; products/projects/activities/campaign etc.
•Identification of Prospects
•Tactics and Channel Selection
•Identify Income Targets
•Budget-Expenditure and Income Projection
•Calendar
•Staffing
•Information Management
•Policies & Procedures
•Risks involved
Coming together of Strategy and Implementation
•Regularly review the strategy
•Build strategy up‐dates into monthly/quarterly meetings
•Identify key milestones for the plan to measure progress
•Circulate the plan to new team members; they can add new dimension to the existing plans.
What resources are needed to develop a fundraising strategy?
•People ‐Committee members/staff
•Dedicate Time
•Plan a timetable for completion before the process begins
•Commitment to the process and belief
•A nominated person/s to guide the group through the exercises or an external facilitator
•A nominated person/s to collate the section write ups and finalize the plan which will form the basis of the strategy
•The guide will only be as useful as the information which is put into it
A critical component of board governance is overseeing the organization and determining its strategic direction. Strategic planning is more than a work plan for the organization. Learn how organizations can benefit from the strategic planning process itself, how to identify the right facilitator, and specific tools for implementation and accountability.
This presentation was delivered at NADO's 2018 Annual Training Conference, held in Charlotte, NC on October 13-16. For more information, visit: https://www.nado.org/events/2018-annual-training-conference/
Case Study: Strategy / Strategic Plan for Charity / Non-ProfitChief Innovation
This is a Case Study of a Strategic Plan we did for a Charity in the southwest U.S.. Posting this to show people an example of what this looks like, and to demonstrate that they can do it themselves instead of paying for a consultant. For larger charities, professional consultants may make sense, but for the smaller ones, a smart Board Member and some volunteers can probably do this. This is based off our own Strategy Methodology for Small Businesses.
Deploying Hoshin Kanri as a Competitive WeaponGrant Crow
This presentation evaluates the Hoshin Kanri concept, what it is, how it works, what can go wrong and how to make Hoshin really work.
Slide 3: Most people familiar with Hoshin Kanri will know that it translates from Japanese into a "Vision Compass". More importantly, Hoshin is gaining traction due to its recognition of the need to link direction (strategy formulation) with management (implementation).
Slide 4: A key feature of Hoshin Kanri is the concept of Breakthrough Objectives. The concept encourages aggressive objectives together with a structured method for cascading these and breaking them down into manageable pieces.
Slides 5 and 6 address common responses from executives one might encounter when trying to introduce Hoshin Kanri together with the symptoms suggesting that Hoshin Planning is required. The symptoms listed will strike a chord with many readers and represent the product of poor strategy execution.
Slide 8 identifies some of the many leading organizations using Hoshin as their strategy execution methodology. The majority of organizations that we at i-nexus are talking to (particularly in the USA) are either considering implementing Hoshin Kanri or have already made a start.
Slide 9 identifies the value of having a strong strategy execution system by tracking share price performance.
Slides 11 and 12 introduce the link between Hoshin Kanri, and in particular the X matrix concept, and Balanced Scorecards. The traditional Balanced Scorecard clearly introduced value by looking at business metrics from more than purely a financial perspective. In contrast however, the X matrix is a far more robust tool for supporting strategy implementation. The various faces of the X matrix (South, West, North and East) detail the WHAT, HOW FAR, HOW and HOW MUCH of the strategy. Having said that, the X matrix is by no means universally popular as a Hoshin tool and is regarded by some CEO's as too complex. It is clearly a tool more likely to provide value in organizations that are more mature in their strategy execution journey.
Slide 13 shows an example of how the i-nexus software supports both the Hoshin X matrix and Scorecards.
Slide 15 identifies the critical role of the bowling chart in linking between the X matrix and action plans and its use a key management tool to track achievement and lack thereof against goals.
Slide 17 identifies "culture change" as a key barrier to effective Hoshin. Many of our customers do find that the greater transparency achieved with i-nexus can be seen as a threat. This needs to be managed carefully with problems (red traffic lights) seen as discussion points rather than failure.
Slide 22 provides an example of an A3 report. Many i-nexus customers find visual management of progress to be key to obtaining commitment to Hoshin.
Finally slide 24 looks at the value of Hoshin countermeasures in enabling early identification and resolution of barriers to progress.
Without a clear guide for fundraising activities in your organization it is difficult to convey needed fundraising efforts throughout your organization, engaging all who are able and leveraging the most dollars for your organization.
Join Emily Davis, author of Fundraising and the Next Generation and President of Emily Davis Consulting to learn:
- Who to involve in the planning process;
- Steps to take to assess your organization, and;
- Essential elements of any fundraising plan.
Strategic planning is answering the question: "What do we wish to become?" The material in this presentation is drawn from the professional nonprofit development community and written from the Orthodox Christian perspective.
A critical component of board governance is overseeing the organization and determining its strategic direction. Strategic planning is more than a work plan for the organization. Learn how organizations can benefit from the strategic planning process itself, how to identify the right facilitator, and specific tools for implementation and accountability.
This presentation was delivered at NADO's 2018 Annual Training Conference, held in Charlotte, NC on October 13-16. For more information, visit: https://www.nado.org/events/2018-annual-training-conference/
Case Study: Strategy / Strategic Plan for Charity / Non-ProfitChief Innovation
This is a Case Study of a Strategic Plan we did for a Charity in the southwest U.S.. Posting this to show people an example of what this looks like, and to demonstrate that they can do it themselves instead of paying for a consultant. For larger charities, professional consultants may make sense, but for the smaller ones, a smart Board Member and some volunteers can probably do this. This is based off our own Strategy Methodology for Small Businesses.
Deploying Hoshin Kanri as a Competitive WeaponGrant Crow
This presentation evaluates the Hoshin Kanri concept, what it is, how it works, what can go wrong and how to make Hoshin really work.
Slide 3: Most people familiar with Hoshin Kanri will know that it translates from Japanese into a "Vision Compass". More importantly, Hoshin is gaining traction due to its recognition of the need to link direction (strategy formulation) with management (implementation).
Slide 4: A key feature of Hoshin Kanri is the concept of Breakthrough Objectives. The concept encourages aggressive objectives together with a structured method for cascading these and breaking them down into manageable pieces.
Slides 5 and 6 address common responses from executives one might encounter when trying to introduce Hoshin Kanri together with the symptoms suggesting that Hoshin Planning is required. The symptoms listed will strike a chord with many readers and represent the product of poor strategy execution.
Slide 8 identifies some of the many leading organizations using Hoshin as their strategy execution methodology. The majority of organizations that we at i-nexus are talking to (particularly in the USA) are either considering implementing Hoshin Kanri or have already made a start.
Slide 9 identifies the value of having a strong strategy execution system by tracking share price performance.
Slides 11 and 12 introduce the link between Hoshin Kanri, and in particular the X matrix concept, and Balanced Scorecards. The traditional Balanced Scorecard clearly introduced value by looking at business metrics from more than purely a financial perspective. In contrast however, the X matrix is a far more robust tool for supporting strategy implementation. The various faces of the X matrix (South, West, North and East) detail the WHAT, HOW FAR, HOW and HOW MUCH of the strategy. Having said that, the X matrix is by no means universally popular as a Hoshin tool and is regarded by some CEO's as too complex. It is clearly a tool more likely to provide value in organizations that are more mature in their strategy execution journey.
Slide 13 shows an example of how the i-nexus software supports both the Hoshin X matrix and Scorecards.
Slide 15 identifies the critical role of the bowling chart in linking between the X matrix and action plans and its use a key management tool to track achievement and lack thereof against goals.
Slide 17 identifies "culture change" as a key barrier to effective Hoshin. Many of our customers do find that the greater transparency achieved with i-nexus can be seen as a threat. This needs to be managed carefully with problems (red traffic lights) seen as discussion points rather than failure.
Slide 22 provides an example of an A3 report. Many i-nexus customers find visual management of progress to be key to obtaining commitment to Hoshin.
Finally slide 24 looks at the value of Hoshin countermeasures in enabling early identification and resolution of barriers to progress.
Without a clear guide for fundraising activities in your organization it is difficult to convey needed fundraising efforts throughout your organization, engaging all who are able and leveraging the most dollars for your organization.
Join Emily Davis, author of Fundraising and the Next Generation and President of Emily Davis Consulting to learn:
- Who to involve in the planning process;
- Steps to take to assess your organization, and;
- Essential elements of any fundraising plan.
Strategic planning is answering the question: "What do we wish to become?" The material in this presentation is drawn from the professional nonprofit development community and written from the Orthodox Christian perspective.
Divisibility rules (Properties of Divisibility)Tsuki Hibari
this presentation is about the properties and theorems revolving Divisibility Rules.. not just "which number is divisible by this number blah blah blah.." this isnt your ordinary divisibility..
Our annual series of Charity Seminars held across the region will this year focus on the various elements involved in building a sustainable charity.
The seminar programme will cover:
• Creating a vision: How to build a resilient organisation and resilient teams
• Turning a vision into a plan: What does a good plan look like and how do you obtain funding?
• Keeping the plan on track: This session will focus on key aspects of financial reporting including the different information requirements of management and trustees
• Effective trustee boards as part of building a sustainable charity
• Real relationships that provide sustainable income
• Why are you here? Achieving impact from your fundraising messages
Our annual series of Charity Seminars held across the region will this year focus on the various elements involved in building a sustainable charity.
The seminar programme will cover:
• Creating a vision: How to build a resilient organisation and resilient teams
• Turning a vision into a plan: What does a good plan look like and how do you obtain funding?
• Keeping the plan on track: This session will focus on key aspects of financial reporting including the different information requirements of management and trustees
• Effective trustee boards as part of building a sustainable charity
• Real relationships that provide sustainable income
• Why are you here? Achieving impact from your fundraising messages
Our annual series of Charity Seminars held across the region will this year focus on the various elements involved in building a sustainable charity.
The seminar programme will cover:
• Creating a vision: How to build a resilient organisation and resilient teams
• Turning a vision into a plan: What does a good plan look like and how do you obtain funding?
• Keeping the plan on track: This session will focus on key aspects of financial reporting including the different information requirements of management and trustees
• Effective trustee boards as part of building a sustainable charity
• Real relationships that provide sustainable income
• Why are you here? Achieving impact from your fundraising messages
Our annual series of Charity Seminars held across the region will this year focus on the various elements involved in building a sustainable charity.
The seminar programme will cover:
• Creating a vision: How to build a resilient organisation and resilient teams
• Turning a vision into a plan: What does a good plan look like and how do you obtain funding?
• Keeping the plan on track: This session will focus on key aspects of financial reporting including the different information requirements of management and trustees
• Effective trustee boards as part of building a sustainable charity
• Real relationships that provide sustainable income
• Why are you here? Achieving impact from your fundraising messages
Creating a Comprehensive Dev. Plan Including Major Gifts and Planned GiftsMichael David-Wilson
How to create a comprehensive development plan which includes major and planned gifts and a budget to support it.
How to turn your annual campaign donors into major and planned giving donors.
The benefits of integrating major and planned giving for your agency and mission.
Strat budgeting for brgy final by Liezel P. Dolotallas; designed by Marvin F....Liezel Dolotallas
This is a combination of budgeting and strategic planning presented at University of Mindanao..this is a combination of modified works and additional inputs made...Hope this can help you..
Janet Gibbs, former CFO at Feeding America, explores best-practices for creating budgets that capture real costs of nonprofit programs, and how to use a dashboard to track progress.
How To Manage Finances & Funding for Educational InstitutionsProcurify.com
Every organization and every person has a spend culture.
Spend culture is a set of shared beliefs and practices that informs a person how, why and when money should be spent.
Whether planned or random, all organizations have a spend culture.
Culture is fluid. It evolves with time and with each additional person. Understanding your spend culture and how it affects the people who work in your organization will influence how much value you get out of your spending.
Find out what your Spend Culture is: https://spendculture.procurify.com/
Strategic Management: The Ultimate Goal of Strategic Planning Kathy Brandt
Developing a strategic plan is the first step in leading a strategic organization. The efficacy of the plan is judged not by how many goals you achieve, but in how well you utilize the plan to strategically lead your organization. According to the Balanced Scorecard Institute, strategic organizations implement processes to “systematically coordinate and align resources and actions with mission, vision and strategy.”
Fundraising Action Plan... After the Strategic PlanRachel Kubicki
You have your fundraising strategic plan... now what? Step by step guide to creating an action plan that will get you and your nonprofit moving in the right direction.
PPT with overall coverage of the project evaluation and all the topic of project evaluation and post project evaluation are covered in this ppt.It includes all the topic of project evaluation:-
=>which of the project should be evaluated?
=>cost&timing
=>social analysis
=>environmental analysis
=>progress report
=>final report
and many more topics are covered in this ppt for the brief description of project evaluation and some left out topics are numerical of project evaluation.
Similar to Playing the Numbers: Learning the New Rules of Museum Finance (20)
Archives Alive! Activating Archives for Engagement & EquityWest Muse
Exciting possibilities await us when we invest in museum archives! Through archives, relevant and engaging connections happen and a more inclusive, approachable space for community results. Learn how nascent collection and institutional archives expand accessibility, reach new audiences, and create unexpected discoveries that empower and shift narratives. This session will explore approaches to improving collections accessibility and holding space for diverse connections through archives.
PRESENTERS: Linda Waterfield, Head of Registration, Phoebe A. Hearst Museum of Anthropology,
University of California at Berkeley
Gina Caprari, Registrar and Collections Manager, The Global Museum and Museum Studies Program, San Francisco State University
Peggy Tran-Le, Research and Technical Services Managing Archivist, Archives and Special Collections at UCSF Library, University of California, San Francisco
Beyond Land Acknowledgements: Real Collaboration with Tribes & Tribal LeadersWest Muse
Tribal land acknowledgments are rapidly growing in popularity among institutions and organizations, taking the form of opening statements in meetings and conferences, signage, or website messages. One might ask why land acknowledgments are being made in a growing number of settings, including the museum. Acknowledgment is a simple, powerful way of showing respect and is intended as a step toward correcting the practices that erase or freeze Indigenous people’s history and culture while inviting and honoring the truth. However, the land acknowledgment is also at risk of ending where it began, perhaps well-conceived and received, but merely a symbolic gesture with little to no follow-through of engagement and real change. While land acknowledgements are well-meaning, they are no substitute for substantive and ongoing tribal relationships and understandings of tribal land claims.
Digital Strategy: A Means for Museum TransformationWest Muse
Museums crafting digital strategies for the first time can find the process daunting, so hearing from members of the museum community who have done this work can be a great place to start. This session will address how an institution can develop a successful digital strategy, including how to leverage technology for institutional impact, how to ensure digital efforts are serving a need, and how digital efforts can protect, enhance, and showcase content.
PRESENTERS: Alisha Babbstein, Archivist, Oregon Jewish Museum and Center for Holocaust Education
Nik Honeysett, CEO, Balboa Park Online Collaborative
Jack Ludden, Senior Strategist and Innovation Specialist, Balboa Park Online Collaborative
Gail Mandel, Deputy Director, Oregon Jewish Museum and Center for Holocaust Education
Building Community: Discovering Resources for Professional Support, Learning,...West Muse
Having a network of colleagues outside of their immediate co-workers was crucial when disaster struck. The members of the Museum Educators of Puget Sound have leaned into this community for support, resources, and information during the COVID-19 pandemic. Join them for open conversation on what they learned about their identity as museum educators, how they supported each other during different phases of the pandemic,
and how to decide what educators can carry forward.
PRESENTERS: Sondra Snyder, Director of Education, Museum of History & Industry
Emily Turner, K-12 & Youth Programs Coordinator, Museum of History & Industry
Nicole Frymier, Former Treasurer of the Museum Educators of Puget Sound
Kate Sorensen, Youth & Children’s Programs Manager, Bellevue Botanical Garden Society
Creative Attention: Art & Community RestorationWest Muse
How can museums support individual and community wellness, belonging, and resilience? Hear a case study from the Palo Alto Art Center about Creative Attention, an initiative that included an exhibition, artist residencies, an art therapy residency, public programs, and wellness programs. As part of the session,m participate in a virtual meditation with our wellness program provider and use the prompts created by mour art therapist in an artmaking session.
MODERATOR: Karen Kienzle, Director, Palo Alto Art Center
PRESENTERS: Julie Forbes, Stress Management Consultant
Anh Tran, LMFT, ATR-P, Licensed Marriage and Family Therapist and Provision Art Therapist
Open to Directors, Deputy Directors, CEOs, CFOs, Leadership Team Members, and Trustees, this luncheon welcomed guest speaker Micah Parzen, CEO, Museum of Us, for a talk about changing the Museum’s name and the work that came after. This luncheon was sponsored by Mad Systems.
Facilitating Critical Conversations Around ExhibitionsWest Muse
Museums provide space for people to engage in critical conversations. In this session, participants will hear from four museums on their relationship between the curation/exhibitions and education/community programs departments, how educators navigate complex and sometimes controversial topics with visitors, and how program organizers create public discussions on critical topics. Participants will also have the opportunity to speak with other museum professionals on how they address critical topics and foster dialogue and civil discourse.
PRESENTERS: Amanda Coven, Director of Education, Oregon Jewish Museum and Center for Holocaust Education
Molly Wilmoth, Bonnie Lee and Oliver P. Steele III Curator of Education & Engagement, High Desert Museum
Eliza Canty-Jones, Chief Program Officer and Editor Oregon Historical Quarterly, Oregon Historical Society
Ariel Peasley, Education and Community Engagement Coordinator, Coos History Museum
Helping Communities Heal in the Wake of Local CrisisWest Muse
As natural disasters and crises become prevalent, hear how four museums responded to wildfires and the recent COVID-19 pandemic. Learn innovative ways to help your community heal. Each museum will share how they addressed local crises in thoughtful and meaningful ways while staying true to their missions and protecting their collections. Through partnerships, interactive social media platforms, creative artmaking, reflective exhibitions, collecting oral histories, and developing programs, each museum became a place of gathering, engagement, connection, reflection, and support.
PRESENTERS: Jeff Nathanson, Executive Director, Museum of Sonoma County
Jesse Clark McAbee, Curator of Museums, Museums of Lake County
Carol Oliva, Director of Development, California Indian Museum and Cultural Center
Jessica Ruskin, Education Director, Charles M. Schulz Museum
How do museums and historians shape a person’s legacy, for better or for worse? Join us for small group conversations as we investigate the stories of aviation pioneers Pancho Barnes and Amelia Earhart through an LBGTQ+ perspective. We’ll consider the wider challenges of representing diverse ethnicities or sexual/gender identities of historical individuals with today’s language, and examine how what museums say (and don’t say) about a person’s life has a profound impact on visitors.
PRESENTERS: Shae Skager, Administrative Coordinator, Education, The Museum of Flight
Sean Mobley, Social Media and Content Marketing Specialist, The Museum of Flight
A national research study, Measurement of Museum Social Impact (MOMSI), is working to create a survey to help museums measure their social impact. In this session, hear about the study, its history, and the forthcoming toolkit; preliminary social impact data from MOMSI host museums; and host museum perspectives on how to recruit participants through an equity lens and use social impact data for master and strategic planning, advocacy, and community engagement.
PRESENTERS: Emily Johnson, Field Services Manager, Utah Division of Arts & Museums
Dean Watanabe, Vice President, and Deputy Director, San Diego Zoo
Dan Keeffe, Director of Learning & Engagement, Los Angeles Zoo and Botanical Gardens
Lorie Millward, VP of Possibilities, Thanksgiving Point Institute
Michelle Mileham, Ph.D., Project Manager, Measurement of Museum Social Impact & Accessibility Coordinator, Utah Division of Arts & Museums
Museum People: Exploring Museum Workforce Issues in 2022West Muse
This session explores workforce issues through the lens of an organization created in reaction to the COVID-19
pandemic. We will facilitate open discussion about issues such as the shift in needed skills, changed business
models, and staff fatigue. The goal is to learn from each other by sharing what’s happening across institutions,
identifying short- and long-term concerns, and considering barriers and ways to move forward.
PRESENTERS: Rita Deedrick, Volunteer, MuseumExpert.org
Wendy Meluch, Principle, Wendy Meluch Consulting
Jill Stein, Founder and Principle Researcher, Reimagine Research Group
Traditional museum conservation fails to address some of the challenges and opportunities inherent in our institutions’ outdoor, macro, and functional artifacts. Whether a lightship, a submarine, a submersible, or your artifact, they sometimes withstand non-standard museum display environments and practices to keep them relevant. Join us for a discussion about preserving historical and educational significance through atypical preservation projects.
PRESENTERS: Beth Sanders, Collections Manager, U.S. Naval Undersea Museum
Richard Pekelney, Co-Chair, USS Pampanito, San Francisco Maritime National Park Association Board of Trustees
Bruce Jones, Deputy Director, Columbia River Maritime Museum
Strategies for Surfacing Truth and Fostering Reconciliation for Racial EquityWest Muse
Museums and cultural institutions are often quick to celebrate the progress they have made toward racial equity while struggling to dedicate time to pause and reflect on what might prevent them from moving forward. Museums & Race offers this session to help museum practitioners foster new dialogic skills to have more truthful conversations, as well as practical ways to move from naming the issues to developing practical strategies to combat harmful behaviors.
PRESENTERS: Jackie Peterson, Owner & Chief Excellence Officer, Jackie Peterson | Exhibit Services and Museums & Race Steering Committee Member
Dr. Karlisa Callwood, Director, Community Conservation Education & Action, Perry Institute for Marine Science; Museums & Race Steering Committee Member
Tools for Meaningful and Engaging Internship ProgramsWest Muse
Inviting interns onto your team is a great way to introduce support, generate diverse ideas, and create valuable learning opportunities for all involved. But not all internship programs are created equal. This session explores tools and engagement strategies to provide more meaningful experiences to interns and the museum.
Presenters: Peter Kukla, Planetarium Manager, Eugene Science Center
Jennifer Powers, Featured Hall Assistant Manager, Oregon Museum of Science and Industry
Planned Giving Opportunities with the Upcoming Transfer of Wealth (Pt 2/2)West Muse
Studies show that $9 trillion in assets will be passed in the U.S. from Baby Boomers to Gen X and millennials by 2027. It is imperative that fundraisers plan thoughtfully for this transfer of wealth because great opportunity exists to secure planned gifts. While many nonprofits focus on immediate funding needs, museums are in a unique position, responsible for long-term institutional preservation and collections care. It is not only prudent but necessary to develop sustainable revenue.
Planned Giving Opportunities with the Upcoming Transfer of Wealth (Pt. 1/2)West Muse
Studies show that $9 trillion in assets will be passed in the U.S. from Baby Boomers to Gen X and millennials by 2027. It is imperative that fundraisers plan thoughtfully for this transfer of wealth because great opportunity exists to secure planned gifts. While many nonprofits focus on immediate funding needs, museums are in a unique position, responsible for long-term institutional preservation and collections care. It is not only prudent but necessary to develop sustainable revenue.
Boards are responsible for the fiscal health of the nonprofit organizations they serve. Not only must they give, but it is essential that they take part in fund development. Many volunteers are uncomfortable in this role. This session will equip staff with tools to train board members about the fundraising cycle and how they can be involved in different phases based on their comfort levels. It will include tips on face to face solicitations.
Inclusivity, Difficult History, and the Modern Museum Audience West Muse
This luncheon was open to Directors, Deputy Directors, CEOs, CFOs, Leadership Team Members, and Trustees, and featured guest speaker David Pettyjohn, Executive Director of the Idaho Humanities Council. David Pettyjohn discussed the Council’s mission of “deepening the understanding of human experience by connecting people with ideas,” and provided information on programming and funding opportunities, including Museum on Main Street, Speakers Bureau, and grants.
Museums and Climate Change: Creating a Sustainable Path ForwardWest Muse
The collective response of our society to climate change will be one of the defining issues of this era. From strategies to improve the environmental performance of facilities to making a difference globally through programs such as We Are Still In, this session will explore the issues surrounding climate change and provide insights on how museums of all varieties can contribute to bringing positive change to their organizations and communities through interpretation and demonstration.
Recalculating, Recalculating...Using the Museum Assessment Program as Your Mu...West Muse
Does your museum need budget-friendly directions to improve its community engagement, address challenges with collections, strengthen its educational activities, align operations overall, or hone its governance for greater leadership potential? The Museum Assessment Program can give your museum the best route to reach your destination. Hear about the new and revised assessment options, as well as about the benefits, experience, and results of MAP from recent participants. Fuel up to apply for this IMLS-funded excellence program today.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Playing the Numbers: Learning the New Rules of Museum Finance
1. Playing by the Numbers:
Learning New Rules of Museum Finance
Deborah Frieden
Deborah Frieden & Associates
Robyn Raschke
University of Nevada, Las Vegas
Marjorie Schwarzer & Ryan Pinter
University of San Francisco
2. Pew Trust Findings (2007)
77% of cultural nonprofits:
Weak or very weak financial position.
73%: less than 3 months of cash.
81%: inadequate working capital to invest
In new ideas and infrastructure.
Chronic low cash = unhappy creditors and
low flexibility.
Goal: break even & avoid a deficit year.
3. alance Sheets
Marjorie Schwarzer and Ryan Pinter
alanced Scorecard
Robyn Raschke
udgeting for capital campaigns
Deborah Frieden
4. Know how to read
your balance sheet
• Balance Sheet – What you have, what you owe, and what
you’re worth.
• Assets – What you have that has $ value & can be measured.
Some are more liquid than others. Some are depreciated
over time.
• Liabilities – Debts incurred in the process of obtaining assets.
• Net assets – What you are worth. Difference between what
you have and what you owe. To invest in organization’s
health.
5. • Recurrent cash crunch (which leads to
excess borrowing)
• Declining assets-to-liabilities ratio (dipping
into reserves)
• A major one-time contribution/influx of cash
that extends services without guaranteeing
long-term financial support or additional
revenue.
• Excess solvency: assets-to-liabilities ratio > 8.
6. Cash is King
A healthy organization should have enough
liquidity (cash) to cover 90 – 180 days of
operating expenses.
Divide an organization’s annual operating
expenses by 365. Then compute:
Cash + other short-term investments
Daily cash required
7. MUSEUM A EXPENSES
FY 2012
1.942 million
365 days
FY 2013
1.935 million
365 days
8. MUSEUM A EXPENSES
FY 2012
1.942 million
365 days
=
$5,321 per day
FY 2013
1.935 million
365 days
=
$5,301 per day
10. Museum A Balance Sheet
FY 2012
Cash 282,762
Savings 0
Prepaid Expenses 0
TOTAL 282,762
FY 2013
Cash 178,382
Savings 0
Prepaid Expenses 37,646
TOTAL 182,148
11. Museum A Balance Sheet
FY 2012
Cash 282,762
Savings 0
Prepaid Expenses 0
TOTAL 282,762
5,321
FY 2013
Cash 178,382
Savings 0
Prepaid Expenses 37,646
TOTAL 182,148
5,301
12. Museum A Balance Sheet
FY 2012
Cash 282,762
Savings 0
Prepaid Expenses 0
TOTAL 282,762
5,321
=
53 days cash on hand
FY 2013
Cash 178,382
Savings 0
Prepaid Expenses 37,646
TOTAL 182,148
5,301
=
34 days cash on hand
13. Grow Working Capital
Ratio analysis is a quick rule of thumb to help you assess your
capital position. A healthy organization will have at least
$2 in current (liquid) assets for every $1 owed, but no more than
$9: $1.
• Current Ratio: Current Assets
Current Liabilities
15. Museum A Balance Sheet
FY 2012
Current Assets
389,099
FY 2013
Current Assets
543,563
16. Museum A Balance Sheet
FY 2012
Current Assets
389,099
Current Liabilities
118,679
FY 2013
Current Assets
543,563
Current Liabilities
95,425
17. Museum A Balance Sheet
FY 2012
Current Assets
389,099
Current Liabilities
118,679
=
3.27
FY 2013
Current Assets
543,563
Current Liabilities
95,425
=
5.69
20. The Steps to A Successful Project Are:
1. Create Clear Goals & Objectives
2. Admit What You Don’t Know and Get Help As Early As
Possible
3. Create Clear Decision-Making Process
4. Develop a Concept Budget As Early As Possible and
Get Stakeholder Buy-In
5. Plan Resources To Address Both $S & People
21. Answering the 5 Big Questions
Why?
How?
What?
When?
Who?
$
$
$
$
$
22. Why?
• Will the Project Further the Mission?
• How Will We Better Serve Our Community?
• What Are Our Key Goals & Objectives for the
Future? Do We Have A Vision?
• Can We Clearly Articulate Our Goals & Vision?
• How Will A Capital Project Secure the Future of the
Institution?
23. Bart’s Adventure – Education Program
Space at Birmingham Museum of Art
Capital Projects From
Small to Large
de Young Museum
24. How?
• How Will We Define the Project?
• How Will We Implement the Planning?
• What Kinds of Expertise Will Be Required?
• What Are The Resources We Can Bring?
• How Will Funds Be Raised? Have We Got a
Fundraising Plan?
25. It’s About the People
and the Process
Program Planning with Senior
Staff
Kathleen Bartels, Director of the
Vancouver Art Gallery
(pictured).
Museum of Craft and Design Planning Session
26. What
• Program
Space Needs – Quantitative
Functional Use Descriptions – Narrative &
Qualitative
Technical
• Benchmarking – Context for Decisions
27.
28. When
• Establishing Overarching Time Based Needs
Fundraising
Institutional Direction & Vision
Capacity of Institution & Resources
Outside Controls or Influence
• Building a Schedule From Milestones
• Creating a Cash Flow Statement
Linking Funding Sources to Outflows
Pledge Timeline
29. Establish A Conceptual Budget As
Early As Possible
A Concept Budget Is Used for:
• Establishing Fundraising Budget & Plan
• Hiring Architect & Engineering Team - % of
Hard Costs for Fees
• Establishing a Design-To-Budget
30. Hard Costs = General Construction
Costs Are Built on Program:
Space, Use & Technical Needs
Step 1 – Create a Conceptual Budget for
Purposes of Initial Planning
• Use Benchmarking to Understand the Range You’re In
• Use Your Space Program as a Basis
• Hire an Estimator
• Use Benchmarking as Reality Check
• Use the SNIFF Test
31. Benchmarking
Size of Comparable Spaces
Percent of Total Space to Specific Dedicated Spaces
Project Costs With Escalations
Cautions with Benchmarking
Reporting Differences - No Apples to Apples!
Dramatic Economic Changes
Projects Scope Differences
Sources of Data
32. $s per 2013 Today's
Cost at Opening S.F. 2.7% per Yr. $s
Museum 1 California
Hard Costs $ 143,000,000 $ 488 $195,675,743 $668
Total costs $ 202,000,000 $ 689 $276,409,092 $943
Museum 2 Southeast
Hard costs $ 80,600,000 $ 455 $108,660,063 $614
Total costs $ 124,000,000 $ 701 $159,901,792 $903
Museum 3 Midwest
Hard costs $ 18,850,000 $ 661 $20,386,275 $715
Total Costs $ 29,000,000 $ 1,018 $30,450,000 $1,068
Museum 4 Southwest
Hard costs $ 120,250,000 $ 668 $130,050,375 $723
Total Costs $ 185,000,000 $ 1,028 $200,077,500 $1,112
Museum 5 New York,N.Y.
Hard costs $ 50,000,000 $ 852 $60,236,576 $949
Museum 6 Northeast
Hard Costs $ 26,200,000 $ 762 $27,510,000 $800
Museum 7 Midwest
Hard costs $ 27,200,000 $ 800 $28,560,000 $840
Museum 8 South
Hard costs $ 19,500,000 $ 696 $25,145,846 $855
33. Education Program Space Benchmarking
Education and
Program Areas by
Museum
Gross Building
Area
Education &
Programs
%
Programs
to Total
Museum 1 311,389 21,400 7%
Museum 2 589,000 20,800 4%
Museum 3 630,000 67,600 11%
Museum 4 163,500 5,000 3%
Museum 5 234,000 6,875 3%
Museum 6 292,000 17,981 6%
34. Building a Budget
Hard Costs = General Construction
Soft Costs =
• Fees – A&E, Specialty Consultants, Project
Management, Legal, City Agencies, etc.
• FF&E – Furniture, Fixtures & Equipment
• Relocation Costs
• Public Relations & Marketing
• Operational Ramp Up
• Operational Deficit Support
• Financing
• Fundraising
• Events
35. Renovation of Existing
Buildings
Birmingham
Museum of Art
de Young
Very Different
Than Building New
36. Step 2 – Use the Conceptual Budget to Kick-Start Serious
Planning – Move from Gross Estimates to More Specific
Budgets
• The “Who” Internal to Organization is Established
• Address the “Who” External to Organization
Hire Architect and Consultants
Address P.R. & Marketing along with Fundraising
• Continue Building Soft-Cost Budget
• Use Benchmarking as Reality Check
• Use the SNIFF Test
37. Who
• Board Leadership
Establishing Committees & Terms of Reference
Fundraising and/or Capital Campaign
• Staff Leadership
PM Liaison with Whom?
Decision Making Structure
Resource Allocation
• Selection and Contracting of Expertise
Architects & Engineering
Economic Advisors
Legal Counsel
Campaign & Political Consultants
38. People Going Through A
Process with Shared Goals
Full Cost Benefit
Reduced Risk
Investment Security
Institutional Sustainability
39. A Balanced View to Strategic
Performance Measurement
Robyn L. Raschke, PhD., CPA
Lee Business School-Accounting
40. Think about it…
Would you be able to drive from home to work
ONLY by using the rear view mirror?
Source:http://www.qcidirect.com/rearview-mirror-extender.html
41. It’s not enough
Although important, financial statements
measure PAST performance.
A Balanced Scorecard (BSC) is a
management tool that considers financial and
non-financial measures by linking strategy to
measurable goals
42. It begins with your MISSION
What is your organization’s vision of the
future?
Why does it exist?
It should focus on the OUTCOMES the
organization wishes to achieve (end) and not
the programs (means)
43. 4 parts to the BSC
The Mission
Financial/Governance
Perspective
Internal
Perspective
Intellectual
Perspective
Customer/Public
Perspective
If we succeed, how will
we look to our financial
donors?
How do we create
value for our
customers?
Which processes
How can we must we excel?
learn and
improve?
44. Financial/Governance Perspective
Accountability between the museum and
society
Objectives & Measures include:
Fundraising capability
% increase
Diversity of sources
Fundraising efficiency (fundraising expenses divided by
total contributions received)
Increase in partnerships/sponsorships
Help share cost of exhibits
Increase in earned revenues (gift shops/events/café/etc)
45. Customer / Public Perspective
How do we create value to our community
and visitors?
Objectives & Measures include:
Public engagement
Increase in first-time visitors
Percent of returning visitors
# of schoolchildren that visit
Range and variety of programs
Visitor satisfaction
# of collaborative projects with other institutions
46. Internal Perspective
Operational effectiveness & human resources
Objectives & Measures include:
Staff & Volunteer development
Employee satisfaction
% of budget dedicated to training & development
# of curators
Internal communications & Information processing
47. Intellectual Perspective
Stewardship of collections and development
of new knowledge
Objectives & Measures include:
Preserve collections
Percent of work displayed
Artwork purchased
Artwork loaned to other museums
Knowledge creation
Publishing
Research Grants
Media coverage on exhibits
48. Example:
Museum of the American Cocktail
“the Museum of the American Cocktail seeks to
advance the profession and increase consumer
knowledge of mixology while stressing the
importance of responsible drinking. MOTAC
celebrates and preserves a rich aspect of
American culture while providing educational
resources for professionals and the public. We
also aim to broaden career opportunities in the
spirits industry and encourage more participation
from women and members of under-represented
groups in the field”
Source: http://www.cocktailmuseum.org/about/
49. Example only
(there is no “correct solution”)
Perspective Key Goal Measure
Financial/Governance sponsorship capability
increase in # of sponsors,
diversity of sponsorship
Customer/Public engagement capability
# of public events, # of events
to the professional mixologist
Internal
staff & volunteer recruiting
capability
quality of staff, employee &
volunteer satisfaction
Intellectual knowledge creation capability
# of publications, # of curated
exhibits
50. Note: KPI’s are Key Performance Indicators
Source: Boston Consulting Group (2011) & A. Zorloni (2012)
51. Thank you!
Contact information:
robyn.raschke@unlv.edu
Resources used for this presentation:
Kaplan, R.S. (2001). Strategic Performance Measurement and
Management in Nonprofit Organizations. Nonprofit Management &
Leadership (11:3), pp. 353-370.
Zorloni, A. (2012). Designing a strategic framework to assess museum
activities. International Journal of Arts Management (14:2), pp.31-47.
Editor's Notes
There are many ways to look at an organization’s financial situation in order to help with decision-making and clearly, as Dr. Raschke pointed out, Boards need to understand that the financials are only one part of the overall organizational health. This morning, we are going to emphasize two essentials: looking at the balance sheet & minding the cash. Reading the balance sheet (which is also called a Statement of Financial Position) provided by your auditor and reported on your 990 helps you assess trends and take your organization’s temperature. Let me review these concepts which I know most of you are familiar with already. A Balance Sheet essentially captures your assets, liabilities and net assets. Take a look at your handout which is an actual Statement of Financial Position from the 990 of a museum that will go unnamed. Your assets (figures 1 – 16) are what you have that has financial value. Your liabilities (figures 17 – 26) are your debts, what you owe. And your net assets (27 – 33) are what you are worth after the liabilities have been subtracted from the assets. Building your net assets is key to developing your ability to invest in future mission-related growth. Now this list can get very confusing as you drill down into the details. For example: Some assets with value are restricted and cannot be converted into cash. For example, line #14 (intangible assets) is the collection. Line #10 is land, buildings and equipment which is depreciated. Likewise some net assets (#28 and 29) are permanently or temporarily restricted as in an endowment fund. And items like accounts receivable are recorded as a net, factoring in, a net amount of what a company expects to ultimately collect, because some customers are likely not to pay. Knowing what to look for can help you identify some common red flags that your organization’s finances are heading in the wrong direction.
----- Meeting Notes (10/6/14 10:31) -----
A blance sheet, also known as a Statement of
There are many more red flags that these four, but here are four that we want to emphasize today. 1. Watch for a recurrent cash crunch which means you are borrowing on a line of credit in order to pay your most pressing bills (like payroll). 2. Assess whether your assets are keeping pace with your liabilities so that you are growing as an organization and not dipping into reserves to fund operations; 3. A one-time large infusion of cash for operations is a great thing, but also a red flag if the organization uses it to plug a hole or start a program that it can’t sustain. And finally, in the case of nonprofits, too much money is not a good thing. Watch out for excess solvency, that is that your assets exceed your liabilities by too great a factor. That means that you are hoarding resources to the detriment of your mission. These are the kinds of trends that watchdog organizations like Charity Navigator look for as they rate nonprofits and their use of resources toward the greater good.
NEXT SLIDE: The first is your cash position. A healthy organization should have enough liquidity (or access to cash) to cover 90 to 180 days of operating expenses, depending on how reliable and regular your cash receipts are. We know that museums’ cash flow is uneven: admissions vary according to the season; collecting on grants – especially government grants – is an uneven process. But here is a general rule of thumb that accounts use. Get out your calculators. Take the annual operating expenses (if you turn your sheet over for Museum A is was 1,942,300 in 2012 and 1,1935,000 in 2013. Divide that number by 365 days. So what was rough daily cash needed per day in 2012? $5321. What was it in 2013? 5301? So this implies that expenses per day went down slightly and if you look at the income, it went up from 2012 to 2013. So we should be okay, right? Well let’s look at the balance sheet to dig more deeply. Turn your sheet back over and look at line #1 (cash) and line #2 (savings) and line #9 (pre-paid expenses). Those are the only relevant assets if you want to see how much cash you have on hand to cover your costs, because the other assets are non-liquid. So for 2012 add: 282,762, zero (since all the funds here are in cash and not in an interest bearing account) and zero (since there are no prepaid expenses). Divide the sum (282,762) by the amount of cash needed per day which was 5321. Uh oh. How many days of cash did Museum A have on average in 2012? 53 days. That’s not good. Let’s see what happened in 2013. Add: 178, 382 + 0 + 37,646 (prepaid expenses): (182,148) and divide by 5301 and we get 34 days of cash. That’s bad. So even though Museum A made more revenue and shrank expenses from 2012 to 2013, their liquidity declined. We can see some clues as to why in the balance sheet, for example in line 4 we can see that their receivables climbed from 76,000 to 304,336. What this might tell us is that raising more money and spending less money is not a foolproof solution to fiscal health. They may also need to look at their internal processes for collecting money owed to them and managing their cash.
Another quick indicator of that you are growing your working or operating capital so you can invest it into your mission is ratio analysis. A healthy organization should haveat the very least enough assets to cover your liabilities and a growing ratio to show that you are building capital that you can dip into in order to try out new ideas and maintain your facility, signs of a healthy organization. So to calculate this, go back to Museum A’s Balance Sheet.
Look at its total assets (line 16) and it seems very healthy. But if we subtract lines 10b, 11, and 15 since those are nonliquid resources like collections, land, stock etc. We really have about 389099 to play with. Now divide the liabilities (line 26) into these current assets. Our asset to liability ratio in 2012 was 3.27 which is fine. Now let’s look at 2013. Again, our current assets did go up, since we have that large accounts receivable line that we can count in. So our assets are 543,563. And our liabilities decreased to 95,425, So our ratio increased to 5.69, meaning that Museum A is growing although its cash position is weak. There are many many more ratios that you can work with and they need to be looked at in conjunction with other factors, but we wanted to give you can idea of how to play around with the numbers. We’ve also given you sheets for a Museum B, which is not in as satisfactory a position as Museum A so you can see another example and play with it yourself. We’ll hang out after this session to help you crunch and analyse the numbers but for now we’ll look at what you can do once you have begun to stabilize your organization so that you grow not only working capital but long term capilal.