The future is never really known but in most situations, organisations are bolstered by seeing others succeed. The spirit of comparison and competition keeps an organization grounded and aware of the flow of setbacks and victories.
When every charitable and nonprofit organization faces the same challenges, outlooks turn grim. To manage financial difficulties caused by the Coronavirus, organizations need to be on the same page and take uniform action.
Engaging services of a charity accountant can make all the differences in these trying times. accounting services for small charities can be very helpful in the charity planning and strategy.
Riding out the storm of turmoil requires a lot of shoring up and defence.
Surmounting Difficulties Caused by Coronavirus
First and foremost, organizations, nonprofit or otherwise, run on people power. Staff can’t work if they aren’t being paid or know they won’t be paid in the near future.
As much as people want to help, they have to take care of themselves and their families to have any capacity to help others.
Donations and fundraising efforts for nonprofits slow as the total cash flow in the economy declines. The routine and regulatory costs stay largely the same. To shore up their numbers, nonprofit fundraising must continue but it needs to do so in a compassionate fashion.
Here are three steps to undertake to face the current challenges.
Identify all assets and get concrete numbers. Consider only the known. Look at the finances as if there will be no growth.
Focus on cash flow management. Identify:
- all the payments the charity will have to make over a range of different timescales (for example, the next few weeks / month / three months / six months)
- Review the cash position to see whether all bills becoming due will be paid in the next few months.
- what income/grant the charity expects to receive over the same timescales based on a best estimate
Tighten and cut costs wherever possible. Non-essential costs can be found especially if looking to decentralize an office.
Look into alternative funds for the short-term.
Things change constantly as more is learned about the global situation. Financial review needs to be performed routinely. The more communication in the channels, the better for informing staff and funders about the sate of the organization.
Resources to Manage Financial Difficulties
A benefit of a large-scale crisis is that many organizations (if not all) are facing the same challenges. In times like these, turn to ongoing resources to learn what relief and aid is available.
Small Charities Coalition
The Small Charities Coalition specialises in tech support and helping charities form connections.
National Council for Voluntary Organisations (NCVO)
NCVO provides assistance through connecting, representing, and supporting organizations in the voluntary sector.
Welsh Council for Voluntary Action (WCVA)
The WCVA offers connections to organisations in Wales for management of finances, resources, and sustainable development.
Institute of Fundraising
The Institute of Fundraising educates on best practise and compliance for those seeking fundraising as a career.
Charity Finance Group
The Charity Finance Group works to improve financial governance and leadership
Charity Tax Group
Charity Tax Group works to represent issues on taxation for nonprofits to Government.
Directory of Social Change
The Directory of Social Change offers training and publications to improve fundraising best-practices.
Association of Chairs
The Association of Chairs provides support to guide in best-practices for those Chairing organizations.
how we can help
As dark as the horizon may seem, there’s plenty to do now to improve chances of an organization surviving into the future.
To manage financial difficulties it’s important to have an accurate accounting of finances and a core plan for moving forward. Contact KG Accountants and learn what they offer for nonprofit organisations.