{"id":3261,"date":"2023-06-08T16:51:55","date_gmt":"2023-06-08T06:51:55","guid":{"rendered":"https:\/\/www.sage.com\/en-au\/blog\/?p=3261"},"modified":"2023-06-08T16:51:55","modified_gmt":"2023-06-08T06:51:55","slug":"non-profit-organisation-strong-financial-future","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-au\/blog\/non-profit-organisation-strong-financial-future\/","title":{"rendered":"How your non-profit organisation can prep for a strong financial future"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-au\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tHow your non-profit organisation can prep for a strong financial future\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2023-06-08T16:51:55+10:00\">June 8, 2023<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"How your non-profit organisation can prep for a strong financial future\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-au\/blog\/non-profit-organisation-strong-financial-future\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n<div class=\"wp-block-post-author\">\n\t\t\t<div class=\"co-authors\">\n\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-au\/blog\/author\/asavinwattanajantra\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2026\/03\/Asavin-350x350.jpg\" class=\"entry-author__image\" alt=\"Asavin\" srcset=\"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2026\/03\/Asavin-350x350.jpg 350w, https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2026\/03\/Asavin-768x768.jpg 768w, https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2026\/03\/Asavin-810x810.jpg 810w, https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2026\/03\/Asavin.jpg 1000w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Asavin Wattanajantra<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t<\/div>\n\t\t<\/div>\n\n\n\n<p class=\"\">Non-profit organisations (NPOs) have had to adapt and pivot their services to survive, with coronavirus hastening change and digital transformation plans. <\/p>\n\n\n\n<p class=\"\">Sound financial management processes supported by the right technology can help your organisation make the most of its money and keep things on track.<\/p>\n\n\n\n<p class=\"\">If you\u2019re still relying on disparate IT systems, you\u2019re probably finding things difficult, whether that\u2019s with jobs such as tracking fundraising income or handling remote working. <\/p>\n\n\n\n<p class=\"\">You can\u2019t pivot your services quickly and grow to your potential if you still use systems that lack visibility.<\/p>\n\n\n\n<p class=\"\">In this article, we outline some key steps that your NPO might want to take to prepare for future changes&nbsp;in your operating environment.<\/p>\n\n\n\n<p class=\"\">Here\u2019s what we cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#change\">Change management<\/a><\/li>\n\n\n\n<li><a href=\"#steps\">10 steps to help your NPO become financially sustainable<\/a><\/li>\n\n\n\n<li><a href=\"#final\">Final thoughts: Be prepared<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"change\">Change management<\/h2>\n\n\n\n<p class=\"\">Change management is a structured approach to ensure your handle transitions smoothly.<\/p>\n\n\n\n<p class=\"\">A change management process can set up NPOs to benefit from the long-term effects of change. A vital component of this is assessing the impact of your changes.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How should you go about assessing and reacting to changes?<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What conclusions can you draw from reporting?<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How can you use this information to manage change and make both strategic and operational decisions?<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"steps\">10 steps to help your NPO become financially sustainable<\/h2>\n\n\n\n<p class=\"\">Here is a 10-step list that will help you make the right decisions and become financially sustainable\u2014where you\u2019re confident about supporting your beneficiaries in the long term.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1.&nbsp;Understand your NPO\u2019s purpose<\/h3>\n\n\n\n<p class=\"\">NPOs exist to fulfil a particular purpose. You and your trustees are responsible for understanding your environment (likely to be volatile) and fulfilling those purposes as effectively as possible.<\/p>\n\n\n\n<p class=\"\">Revisit the purpose of your NPO, as it\u2019ll help you build a strategy that\u2019ll get you to your desired outcomes and impacts.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What is the aim of your NPO?<\/li>\n\n\n\n<li>What are your objectives?<\/li>\n\n\n\n<li>What are your projects?<\/li>\n<\/ul>\n\n\n\n<p class=\"\">Before assessing what needs to change, you need to understand the context of the financial models you will base decisions on.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2.&nbsp;&nbsp;Draw up a list of questions to answer when considering your financial sustainability<\/h3>\n\n\n\n<p class=\"\">Determine what information is required when deciding how financially sustainable your NPO is.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Are you operating within your means?<\/li>\n\n\n\n<li>How certain can you be about your NPO\u2019s financial future?<\/li>\n\n\n\n<li>How secure is your NPO\u2019s income?<\/li>\n\n\n\n<li>How predictable is your NPO\u2019s income?<\/li>\n\n\n\n<li>How diverse is your NPO\u2019s income?<\/li>\n\n\n\n<li>Can you quickly tell where you\u2019re spending money?<\/li>\n\n\n\n<li>Does the balance of spending reflect your strategy and stated priorities?<\/li>\n\n\n\n<li>Are there enough reserves for a rainy day?<\/li>\n\n\n\n<li>Is any debt you have currently manageable?&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">3.&nbsp;Find out what information you have<\/h3>\n\n\n\n<p class=\"\">You can only fully answer questions about your financial sustainability if you access the correct information. And with that in mind:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Can you quickly access critical information?<\/li>\n\n\n\n<li>Is it enough to assess sustainability and impact?<\/li>\n\n\n\n<li>As well as historical data regarding actual costs and incomes, what will you need to make future forecasts and undertake scenario planning and modelling?<\/li>\n<\/ul>\n\n\n\n<p class=\"\">Accessing the data you need can be more challenging than you think, especially if you\u2019ve wrapped it up in spreadsheets. Having financial management software could make this easier for you going forward.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4.&nbsp;Evaluate the tools and resources you have available<\/h3>\n\n\n\n<p class=\"\">Accessing data is one thing, analysing data is quite another.<\/p>\n\n\n\n<p class=\"\">Making sense of spreadsheet data is possible but difficult. The cloud allows you to quickly process and analyse data with computing power and software designed for that purpose.<\/p>\n\n\n\n<p class=\"\">It\u2019s not just a technology question, though. You\u2019ll need to report the information in a way that makes sense to the right people and take practical action based on the data.<\/p>\n\n\n\n<p class=\"\">Things to consider include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Is your finance software capable of analysing the information you have?<\/li>\n\n\n\n<li>Can it provide future information promptly to support the change process?<\/li>\n\n\n\n<li>Who is doing the assessment, and have they got the time and skills needed?<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">5. Determine your key risks<\/h3>\n\n\n\n<p class=\"\">As well as gathering and analysing information, you\u2019ll need to develop realistic scenarios where you might need to react. This could include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>reductions (or increases) in income across all streams.<\/li>\n\n\n\n<li>unexpected costs, such as costs on structural repairs to key properties.<\/li>\n\n\n\n<li>larger than expected bills\u2014what will happen if you don\u2019t pay them on time?<\/li>\n\n\n\n<li>imminent legislation or regulations to comply with.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">6.&nbsp;Break down the impact assessment of these scenarios into separate blocks<\/h3>\n\n\n\n<p class=\"\">Change management is about assessing the impact on your NPO, and you should understand how different areas of your organisation come together.<\/p>\n\n\n\n<p class=\"\">Identify the building blocks required to assess the overall impact, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cost structures<\/li>\n\n\n\n<li>Cash flow<\/li>\n\n\n\n<li>Individual initiatives<\/li>\n\n\n\n<li>Staff and beneficiaries.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">7.&nbsp;Consider who needs to see the information<\/h3>\n\n\n\n<p class=\"\">Once you undertake your impact assessment, you need to work out how it should be presented and to whom.<\/p>\n\n\n\n<p class=\"\">For some people, only presenting numerical data may not be appropriate. For example, not all trustees have the financial expertise required to evaluate that information.<\/p>\n\n\n\n<p class=\"\">Consider contextualising examples from a leadership perspective, offering a more descriptive common-language explanation of the assessed scenarios and conclusions you\u2019ve made.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8.&nbsp;Decide responsibilities<\/h3>\n\n\n\n<p class=\"\">At your NPO, decide who will be responsible for implementing change and acting upon the decisions made based on your financial analysis work.<\/p>\n\n\n\n<p class=\"\">Assign responsibility for crucial actions within the organisation. Support them with transparent progress monitoring and reporting to ensure their actions remain on plan. It\u2019ll also make sure any issues are reviewed and reacted to promptly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">9.&nbsp;Focus on what\u2019s important<\/h3>\n\n\n\n<p class=\"\">With today\u2019s financial management software, you can probably pull a lot of financial information. Be reasonable and proportionate\u2014you can\u2019t measure, assess, analyse, and predict everything.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">10.&nbsp;View change in a positive light<\/h3>\n\n\n\n<p class=\"\">Change is scary, and you\u2019re understandably cautious. But change management isn\u2019t just about mitigating risk.<\/p>\n\n\n\n<p class=\"\">Rather than just focusing on doomsday scenarios, seize it as an opportunity to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Operate more strategically<\/li>\n\n\n\n<li>Build infrastructure<\/li>\n\n\n\n<li>Invest in technology.<\/li>\n<\/ul>\n\n\n\n<p class=\"\">Have north star goals such as recovery, resilience, and positivity when assessing change. To build on opportunities with confidence, you need to feel you\u2019re reliably making decisions based on sound financial data.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final\">Final thoughts: Be prepared<\/h2>\n\n\n\n<p class=\"\">Similar to any profit-making business, your NPO should want to do its very best and succeed. You need to understand what you\u2019re trying to achieve and what you can do to improve performance. <\/p>\n\n\n\n<p class=\"\">Being prepared can help your organisation deal with change when it happens.<\/p>\n\n\n\n<p class=\"\">And as an outcome, that means your NPO can focus on what you\u2019re doing now and what you need to do on an ongoing basis to meet your strategic objectives, while ensuring financial sustainability.<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-20ec4af6-53dd-41ab-81ed-95d438e3bb90\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2019\/01\/GettyImages-626184462-1064x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2019\/01\/GettyImages-626184462-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discover some key steps that your NPO might want to take to prepare for future changes\u00a0in your operating environment<\/p>\n","protected":false},"author":356,"featured_media":2857,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[79,73],"tags":[138,206],"business_type":[9],"context":[],"industry":[120],"persona":[110,102],"imagine_tag":[],"coauthors":[294],"class_list":["post-3261","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-long-term-planning","category-money-matters","tag-business-management","tag-management","business_type-medium-sized-business","industry-non-profit"],"sage_meta":{"region":"en-au","author_name":"Asavin Wattanajantra","featured_image":"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2022\/04\/GettyImages-1345196516.jpg","imagine_tags":[]},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Australia","distributor_original_site_url":"https:\/\/www.sage.com\/en-au\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/posts\/3261","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/users\/356"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/comments?post=3261"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/posts\/3261\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/media\/2857"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/media?parent=3261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/categories?post=3261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/tags?post=3261"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/business_type?post=3261"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/context?post=3261"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/industry?post=3261"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/persona?post=3261"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/imagine_tag?post=3261"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/coauthors?post=3261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}