This training is brought to you by the Central Valley Coalition for Human Services (CVCHS); a group of private nonprofit, governmental and educational organizations, who have come together to provide more effective and efficient human services in the Central Valley. Become a member today at: www.centralvalleychs.org Sponsored By:
CVCHS PARTNERS:
AGENDA: 9:30 - Check-in, welcome 9:45 - Introductions 10:00 - Understanding your organization s finances 10:15 - Diversifying Income; grants, fundraising, and fee for service 10:45 - Break 11:00 Diversifying Income, continued 11:30 - Break for lunch 12:00 - Mission and Money: Using Financial Statements for Better Community Impact - Presented by the NCCLF 4:00 - Question & Answer, Evaluations & Wrap up Training Content:
UNDERSTANDING YOUR ORGANIZATION S FINANCES Why should you, as a mid-manager, program coordinator or program manager understand your organization s financial situation? Being familiar with budget tools helps you to make programming decisions with the budget in mind, this, in turn: - reduces risk - helps you plan for the future program changes (expansion or cutbacks) - pinpoint where more resources are needed - streamlines the approval system - makes for a more coordinated system
DIVERSIFYING INCOME Why Diversifying Income is Important: Many CBOs have relied on a limited number of funding sources for years. In good economies this often works. In difficult economies funding may be cut from your traditional services, so services will only remain if you have diverse funding streams. This is the same philosophy for profit businesses and investors use. Sources of income: Individuals, corporations, bequests, foundations, federal, state and local government. Did You Know? Nonprofits received nearly $291 billion in contributions in 2010. - $211.77 billion (73%) from individuals - $41.00 billion (14%) from foundations - $22.83 billion (8%) from bequests - $15.29 billion (5%) from corporations *Source www.guidestar.org
GRANTS THE SOURCE MOST OFTEN CONSIDERED Why they re good: - Build organization credibility and often hold organizations to a high standards - Available from small to very large amounts, supporting large, long-term projects Why they re not sufficient: - Grants restrict the movement of money to only specific programs or services - CBOs tend to rely on their traditional funding sources even when they shrink, and as resources are getting more scarce. - Diversifying income makes you less reliant on any one source - Unrestricted funds are a good source of start-up program dollars
Making Grants work for you: - Consider multiple grant funding streams; corporations, private foundations and government grant funds - Get creative, while staying mission driven; e.g. if you train individuals with disabilities in work skills, look for grants under disabilities, but also under work training, building independence, etc. - Make the proposal worth while; consider past awardees, how well you fit the RFP s goals to fund, and whether the size of the grant is worth the effort.
FUNDRAISING DONORS, EVENTS, MARKETING Why it s a good idea: - A good source of general funds those funds not committed to specific expenditures. - Builds community connections Smart money management in fundraising: - Calculate your ROI; consider staff time, the benefits of marketing, and the various costs associated with donor development and event fund raising - Run every fund raiser like your own small business raise money not just awareness - Look for low-cost solutions; social media, free donation site services,
SMART FUNDRAISING
FEE FOR SERVICE - Most overlooked by many CBOs; a great way to provide services while bringing in unrestricted revenue - Can apply for government contracts or commercial businesses - Must be for your nonprofit purpose, mission driven, or you pay taxes - Look to the organizations who have made it work; regional centers and day service providers to consider how it can be done in larger - Almost every organization has a specialty that regular businesses charge for; consider charging for trainings for government or commercial entities on your service issue
INCOME, REVENUE, PROFIT & LOSS Income = Revenue : All money coming in; grants, fund-raising dollars, fee-for-service Different types of income for planning purposes: -unrestricted = can be used for any agency expense -restricted = can only be used only for specified purposes, defined by the funder - deferred = doesn t show as income until it is spent Profit : Money that is left after expenses, but is not restricted Remember: Nonprofits need to make a profit! Pass-through funds; usually generated from grants - income that does not cover agency expenses, but is dedicated to go to other people (directly to consumers) or businesses.