Recovery from substance use issues is a personal journey that depends on the individual's perspective. It is not a destination that is achieved but rather a process of gaining improvement. Recovery involves voluntarily controlling substance use and maximizing health and well-being while participating fully in society. Services can help facilitate recovery through treatment, support, and connecting individuals to recovery communities and mutual aid groups. Recovery principles emphasize hope, empowerment, social support networks, and focusing on individuals' strengths rather than deficits.
The survey found that nonprofit organizations continue to struggle with increased demand for services due to the lingering effects of the recession and ongoing funding cuts. While some organizations have recovered from the worst impacts, over 85% reported higher demand for services since 2008. Many organizations are unable to meet this growing need as funding has not kept pace. The sector remains stretched thin and feels disconnected from funders and boards. Government funding, which nearly half of respondents rely on, has been unreliable with frequent payment delays, exacerbating financial challenges for nonprofits.
Organizations that can clearly and accurately articulate their financial story and resource needs are better positioned to make a strong case for support. In both good times and bad, your stakeholders will be more engaged if you can provide a data-driven assessment that links your nonprofit’s financial health to its impact and accomplishments. This can inform strategic planning and guide leadership in making mission driven, financially sound decisions.
We've created a worksheet divided into six core areas of nonprofit finance, described in detail in the document:
Revenue
Expenses
Probability and Savings
Health of the Balance Sheet
Liquidity
Financial Planning
Use the worksheet to capture a snapshot of your nonprofit’s strengths and weaknesses. Together, these areas help you balance the three critical components essential to your organization’s long-term viability: Mission, Capacity, and Capital.
This document discusses Pay for Success bonds as a new approach to social program funding. It begins by describing traditional government funding which allocates money to different agencies for various programs without knowing which are truly effective. Pay for Success bonds allow private investors to fund social service providers upfront, and the government only pays if the programs achieve pre-agreed outcomes. This addresses issues of scaling effective approaches and shifting funds based on results. However, there are also challenges around complexity, measurability, and political will. Overall, Pay for Success bonds aim to leverage private capital to expand programs that work, while only spending public money when objectives are met.
This document discusses a new technique for nonprofit organizations to separately report capital and operating revenue in their financial statements in order to provide more transparency. Under the current reporting standards, capital is often mixed in with operating revenue, obscuring the true financial performance and health of the organization. The proposed technique separates capital from revenue to show how capital is being used to fund planned deficits as an organization undergoes changes. It also allows organizations and funders to track progress toward the goal of achieving net operating revenue. The document provides examples of how the capital and operating revenue would be reported separately using this new technique.
Recovery from substance use issues is a personal journey that depends on the individual's perspective. It is not a destination that is achieved but rather a process of gaining improvement. Recovery involves voluntarily controlling substance use and maximizing health and well-being while participating fully in society. Services can help facilitate recovery through treatment, support, and connecting individuals to recovery communities and mutual aid groups. Recovery principles emphasize hope, empowerment, social support networks, and focusing on individuals' strengths rather than deficits.
The survey found that nonprofit organizations continue to struggle with increased demand for services due to the lingering effects of the recession and ongoing funding cuts. While some organizations have recovered from the worst impacts, over 85% reported higher demand for services since 2008. Many organizations are unable to meet this growing need as funding has not kept pace. The sector remains stretched thin and feels disconnected from funders and boards. Government funding, which nearly half of respondents rely on, has been unreliable with frequent payment delays, exacerbating financial challenges for nonprofits.
Organizations that can clearly and accurately articulate their financial story and resource needs are better positioned to make a strong case for support. In both good times and bad, your stakeholders will be more engaged if you can provide a data-driven assessment that links your nonprofit’s financial health to its impact and accomplishments. This can inform strategic planning and guide leadership in making mission driven, financially sound decisions.
We've created a worksheet divided into six core areas of nonprofit finance, described in detail in the document:
Revenue
Expenses
Probability and Savings
Health of the Balance Sheet
Liquidity
Financial Planning
Use the worksheet to capture a snapshot of your nonprofit’s strengths and weaknesses. Together, these areas help you balance the three critical components essential to your organization’s long-term viability: Mission, Capacity, and Capital.
This document discusses Pay for Success bonds as a new approach to social program funding. It begins by describing traditional government funding which allocates money to different agencies for various programs without knowing which are truly effective. Pay for Success bonds allow private investors to fund social service providers upfront, and the government only pays if the programs achieve pre-agreed outcomes. This addresses issues of scaling effective approaches and shifting funds based on results. However, there are also challenges around complexity, measurability, and political will. Overall, Pay for Success bonds aim to leverage private capital to expand programs that work, while only spending public money when objectives are met.
This document discusses a new technique for nonprofit organizations to separately report capital and operating revenue in their financial statements in order to provide more transparency. Under the current reporting standards, capital is often mixed in with operating revenue, obscuring the true financial performance and health of the organization. The proposed technique separates capital from revenue to show how capital is being used to fund planned deficits as an organization undergoes changes. It also allows organizations and funders to track progress toward the goal of achieving net operating revenue. The document provides examples of how the capital and operating revenue would be reported separately using this new technique.
The document discusses a new technique for nonprofit financial reporting that separates capital funding from operating revenue. Under the conventional reporting method, capital is treated as regular revenue, obscuring the organization's true operating picture. The proposed method reports capital separately from revenue to show whether capital investments are resulting in increased revenue to cover ongoing costs. It recommends presenting capital releases separately below the change in net assets line for improved transparency. This allows leaders and funders to assess progress toward financial sustainability goals.
This document discusses the need for improved capitalization practices in arts organizations to help them thrive financially and artistically. Most arts nonprofits are "mis-capitalized," meaning they lack the right types and amounts of capital at the right times to support innovation, growth, and artistic excellence. The Leading for the Future initiative aims to address this issue by providing "change capital" grants to 10 arts organizations to help them adapt their programming, operations, and finances in sustainable ways. Principles of improved capitalization could strengthen the field if adopted more broadly by nonprofits and funders.
Pay for Success Projects and Social Impact Bonds: Structuring Considerations ...Nonprofit Finance Fund
In NFF's first SIB e-vent, we held a live web chat exploring the challenges and opportunities of SIB and their potential to develop in the US marketplace. In this second e-vent, experts from The Young Foundation (UK), the Centre for Social Impact (New South Wales), and NFF discussed:
1. What SIB models exist for risk sharing and rewards incentives
2. How other countries have come to determine the right SIB structures for their transactions
3. Initial implications for structuring SIBs/Pay for Success projects in the United States
See this and other resources, including the recording of the live webinar at our Social Impact Bond discussion group, which is free for anyone to join here: http://nonprofitfinancefund.org/sib
This document discusses how grantmakers can use balance sheets to assess the financial risk faced by arts organizations. It explains that balance sheets reveal an organization's liquidity, adaptability, and durability. The author analyzes the sample balance sheet of a theater company to demonstrate how to evaluate these factors. Key points include cash availability, reserves, debt obligations, and calculating financial ratios like months of liquid net assets. Analyzing balance sheets along with income statements over time can provide useful insights into an organization's financial stability and needs.
The document provides a methodology statement for the Nonprofit Finance Fund's 2011 survey of nonprofit professionals. The survey asked about financial experiences in 2010 and expectations for 2011. It was conducted online between January and February 2011, receiving 1,935 responses. The survey targeted nonprofit managers nationwide through email lists, social media, and regional networks. It contained 32 questions on demographics, finances, revenue sources, and financial/programmatic actions. Results are available aggregated and by sector, geography or other characteristics, but are not statistically weighted.
On the Boards (OtB), a contemporary performance arts organization in Seattle, faced financial struggles after purchasing and renovating a new performance space. Through the Mid-sized Presenting Organizations Initiative funded by the Doris Duke Charitable Foundation, OtB received guidance from the Nonprofit Finance Fund (NFF) over four years. With NFF's help, OtB established operating and building reserve funds, retired all long-term debt, and received a grant to establish an endowment. As a result, OtB strengthened its financial position and long-term sustainability.
This document provides tips for making nonprofit facilities more energy efficient and environmentally sustainable. Some key recommendations include sealing cracks and leaks around windows, doors, and other areas to reduce energy loss, installing programmable thermostats and HVAC filters, replacing old windows with more efficient double-pane windows, installing outdoor shading and planting deciduous trees for shade, and changing lighting to more efficient bulbs and utilizing light-colored paint to reflect existing light. Implementing these low-cost changes can help nonprofits reduce utility bills and maintenance costs while creating a healthier environment.
Telling Your School’s Story through Your Financial Statements: A Lender’s Poi...Nonprofit Finance Fund
This document discusses how charter school financial statements help tell potential lenders the story of a school's past, present, and future financial situation when applying for loans. It outlines the key factors lenders evaluate, including the school's financial systems, historical financial statements like income statements and balance sheets, and forward-looking statements like budgets, cash flow projections, and income statement projections. Being able to clearly articulate the school's financial story through these documents is important for obtaining a loan.
hopeFound: Finding the Way Through Data, Discipline & Dialogue (case study)Nonprofit Finance Fund
hopeFound: Finding the Way Through Data, Discipline & Dialogue
Measuring impact is an ongoing challenge that all nonprofits-- including NFF--are always thinking about. With the multitude of factors that tangle the trajectory from service delivery to long-term outcomes, impact is often a complex picture that doesn't immediately unfold in hard numbers.
Recently, however, we had the chance follow up on an amazing story of long-term impact with hopeFound, a nonprofit dedicated to preventing and ending homelessness in the greater Boston area. hopeFound came to NFF in 2005, in the midst of some serious financial challenges that were posing a threat to the critical services they offer to the community.
Using five years of hopeFound's financial data, we performed a complete business analysis to shed light on their financial situation and provide a road map towards improved organizational health. hopeFound used NFF's findings to transform into a sustainable nonprofit achieving more impact than ever before. Now, a little over 5 years later, hopeFound engaged NFF to perform a second business analysis to clarify their 10-year trajectory of success and help shape a plan for the future.
So how did hopeFound achieve this transformation, and what can all nonprofits learn from this story? Check out the case study below to see how hopeFound combined effective data collection, disciplined planning and decision-making, and transparent communication to take control of their organization's future.
Anjali Deshmukh, Marketing and Communications Manager
The nonprofit organization anticipated a negative economic impact but was able to improve its financial situation through careful cost cutting and program restructuring rather than reducing services. It implemented new expenditure tracking and made afterschool programs more affordable. Increased fundraising, improved operations, and new procurement policies allowed them to add to reserves. Provided these approaches continue, programming should be more sustainable in the future.
The survey of more than 1,900 nonprofit leaders in markets nationwide found that while there are some signs of hope, many nonprofits are straining under year-after-year increases in the demand for services. If you're interested in a customized report by geography or sub-sector, please contact Nonprofit Finance Fund!
WHEDCo received a grant from NFF in 2002 and has since received additional funding from NFF, including a line of credit to help with cash flow from government contracts and two Nonprofit Business Advisors (NBA) to help shape their strategies. The South Bronx Charter School for International Cultures and the Arts received $2.5 million in financing from NFF and others to acquire a new facility, and NFF is evaluating additional funding for a $11.4 million renovation. Manhattan Youth Resources and Recreation was an early user of the NBA, which provided insight into opening a new community center, and later received a line of credit from NFF to complete the project.
The document discusses a new technique for nonprofit financial reporting that separates capital funding from operating revenue. Under the conventional reporting method, capital is treated as regular revenue, obscuring the organization's true operating picture. The proposed method reports capital separately from revenue to show whether capital investments are resulting in increased revenue to cover ongoing costs. It recommends presenting capital releases separately below the change in net assets line for improved transparency. This allows leaders and funders to assess progress toward financial sustainability goals.
This document discusses the need for improved capitalization practices in arts organizations to help them thrive financially and artistically. Most arts nonprofits are "mis-capitalized," meaning they lack the right types and amounts of capital at the right times to support innovation, growth, and artistic excellence. The Leading for the Future initiative aims to address this issue by providing "change capital" grants to 10 arts organizations to help them adapt their programming, operations, and finances in sustainable ways. Principles of improved capitalization could strengthen the field if adopted more broadly by nonprofits and funders.
Pay for Success Projects and Social Impact Bonds: Structuring Considerations ...Nonprofit Finance Fund
In NFF's first SIB e-vent, we held a live web chat exploring the challenges and opportunities of SIB and their potential to develop in the US marketplace. In this second e-vent, experts from The Young Foundation (UK), the Centre for Social Impact (New South Wales), and NFF discussed:
1. What SIB models exist for risk sharing and rewards incentives
2. How other countries have come to determine the right SIB structures for their transactions
3. Initial implications for structuring SIBs/Pay for Success projects in the United States
See this and other resources, including the recording of the live webinar at our Social Impact Bond discussion group, which is free for anyone to join here: http://nonprofitfinancefund.org/sib
This document discusses how grantmakers can use balance sheets to assess the financial risk faced by arts organizations. It explains that balance sheets reveal an organization's liquidity, adaptability, and durability. The author analyzes the sample balance sheet of a theater company to demonstrate how to evaluate these factors. Key points include cash availability, reserves, debt obligations, and calculating financial ratios like months of liquid net assets. Analyzing balance sheets along with income statements over time can provide useful insights into an organization's financial stability and needs.
The document provides a methodology statement for the Nonprofit Finance Fund's 2011 survey of nonprofit professionals. The survey asked about financial experiences in 2010 and expectations for 2011. It was conducted online between January and February 2011, receiving 1,935 responses. The survey targeted nonprofit managers nationwide through email lists, social media, and regional networks. It contained 32 questions on demographics, finances, revenue sources, and financial/programmatic actions. Results are available aggregated and by sector, geography or other characteristics, but are not statistically weighted.
On the Boards (OtB), a contemporary performance arts organization in Seattle, faced financial struggles after purchasing and renovating a new performance space. Through the Mid-sized Presenting Organizations Initiative funded by the Doris Duke Charitable Foundation, OtB received guidance from the Nonprofit Finance Fund (NFF) over four years. With NFF's help, OtB established operating and building reserve funds, retired all long-term debt, and received a grant to establish an endowment. As a result, OtB strengthened its financial position and long-term sustainability.
This document provides tips for making nonprofit facilities more energy efficient and environmentally sustainable. Some key recommendations include sealing cracks and leaks around windows, doors, and other areas to reduce energy loss, installing programmable thermostats and HVAC filters, replacing old windows with more efficient double-pane windows, installing outdoor shading and planting deciduous trees for shade, and changing lighting to more efficient bulbs and utilizing light-colored paint to reflect existing light. Implementing these low-cost changes can help nonprofits reduce utility bills and maintenance costs while creating a healthier environment.
Telling Your School’s Story through Your Financial Statements: A Lender’s Poi...Nonprofit Finance Fund
This document discusses how charter school financial statements help tell potential lenders the story of a school's past, present, and future financial situation when applying for loans. It outlines the key factors lenders evaluate, including the school's financial systems, historical financial statements like income statements and balance sheets, and forward-looking statements like budgets, cash flow projections, and income statement projections. Being able to clearly articulate the school's financial story through these documents is important for obtaining a loan.
hopeFound: Finding the Way Through Data, Discipline & Dialogue (case study)Nonprofit Finance Fund
hopeFound: Finding the Way Through Data, Discipline & Dialogue
Measuring impact is an ongoing challenge that all nonprofits-- including NFF--are always thinking about. With the multitude of factors that tangle the trajectory from service delivery to long-term outcomes, impact is often a complex picture that doesn't immediately unfold in hard numbers.
Recently, however, we had the chance follow up on an amazing story of long-term impact with hopeFound, a nonprofit dedicated to preventing and ending homelessness in the greater Boston area. hopeFound came to NFF in 2005, in the midst of some serious financial challenges that were posing a threat to the critical services they offer to the community.
Using five years of hopeFound's financial data, we performed a complete business analysis to shed light on their financial situation and provide a road map towards improved organizational health. hopeFound used NFF's findings to transform into a sustainable nonprofit achieving more impact than ever before. Now, a little over 5 years later, hopeFound engaged NFF to perform a second business analysis to clarify their 10-year trajectory of success and help shape a plan for the future.
So how did hopeFound achieve this transformation, and what can all nonprofits learn from this story? Check out the case study below to see how hopeFound combined effective data collection, disciplined planning and decision-making, and transparent communication to take control of their organization's future.
Anjali Deshmukh, Marketing and Communications Manager
The nonprofit organization anticipated a negative economic impact but was able to improve its financial situation through careful cost cutting and program restructuring rather than reducing services. It implemented new expenditure tracking and made afterschool programs more affordable. Increased fundraising, improved operations, and new procurement policies allowed them to add to reserves. Provided these approaches continue, programming should be more sustainable in the future.
The survey of more than 1,900 nonprofit leaders in markets nationwide found that while there are some signs of hope, many nonprofits are straining under year-after-year increases in the demand for services. If you're interested in a customized report by geography or sub-sector, please contact Nonprofit Finance Fund!
WHEDCo received a grant from NFF in 2002 and has since received additional funding from NFF, including a line of credit to help with cash flow from government contracts and two Nonprofit Business Advisors (NBA) to help shape their strategies. The South Bronx Charter School for International Cultures and the Arts received $2.5 million in financing from NFF and others to acquire a new facility, and NFF is evaluating additional funding for a $11.4 million renovation. Manhattan Youth Resources and Recreation was an early user of the NBA, which provided insight into opening a new community center, and later received a line of credit from NFF to complete the project.