{"id":21686,"date":"2025-05-07T10:00:00","date_gmt":"2025-05-07T09:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=21686"},"modified":"2025-05-02T16:42:49","modified_gmt":"2025-05-02T15:42:49","slug":"financial-planning-non-profit-organisations-2","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/financial-planning-non-profit-organisations-2\/","title":{"rendered":"9 steps to create an effective financial plan for non-profit organisations"},"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-gb\/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\t9 steps to create an effective financial plan for non-profit organisations\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\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=\"2025-05-07T10:00:00+01:00\">7 May, 2025<\/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=\"9 steps to create an effective financial plan for non-profit organisations\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/financial-planning-non-profit-organisations-2\/\"\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\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\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-gb\/blog\/author\/yassirmalik\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/03\/Yassir-Malik.jpg\" class=\"entry-author__image\" alt=\"yassir-malik-profile-picture\" \/>\t\t\t\t<span class=\"entry-author__name\">Yassir Malik<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>As a non-profit, you face unique challenges, from securing consistent funding and managing tight budgets to navigating complex compliance requirements.<\/p>\n\n\n\n<p>Unlike for-profit businesses, you must balance financial needs with your mission, often relying on donations, grants, and fundraising to sustain operations.<\/p>\n\n\n\n<p>Careful resource allocation is key to covering both your administrative and programmatic expenses.<\/p>\n\n\n\n<p>Without a clear financial plan, your non-profit risks instability, which could threaten its ability to serve the community or even survive.<\/p>\n\n\n\n<p>Philanthropic financial planning is crucial to making a lasting impact.<\/p>\n\n\n\n<p>It helps maintain financial stability, optimise resources, and support the growth of your non-profit\u2019s mission.<\/p>\n\n\n\n<p>A well-structured financial plan will guide your daily operations and lay the foundation for future expansion, allowing your organisation to align its mission with the financial key performance indicators.<\/p>\n\n\n\n<p>This guide will walk you through nine essential steps to create an effective financial plan for non-profit organisations.<\/p>\n\n\n\n<p>Here&#8217;s what we cover:<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-why-does-your-non-profit-need-a-financial-plan\" data-level=\"2\">Why does your non-profit need a financial plan?<\/a><\/li><li><a href=\"#h-9-steps-for-non-profit-financial-planning\" data-level=\"2\">9 steps for non-profit financial planning<\/a><ul><li><a href=\"#h-1-understand-your-non-profit-model\" data-level=\"3\">1. Understand your non-profit model<\/a><\/li><li><a href=\"#h-2-align-your-budget-with-past-performance-and-strategic-goals\" data-level=\"3\">2. Align your budget with past performance and strategic goals<\/a><\/li><li><a href=\"#h-3-analyse-market-trends-and-community-needs\" data-level=\"3\">3. Analyse market trends and community needs<\/a><\/li><li><a href=\"#h-4-account-for-overhead-expenses\" data-level=\"3\">4. Account for overhead expenses<\/a><\/li><li><a href=\"#h-5-implement-an-organised-non-profit-accounting-system\" data-level=\"3\">5. Implement an organised non-profit accounting system<\/a><\/li><li><a href=\"#h-6-project-income-and-expenses\" data-level=\"3\">6. Project income and expenses<\/a><\/li><li><a href=\"#h-7-evaluate-underlying-assumptions-and-conduct-risk-analysis\" data-level=\"3\">7. Evaluate underlying assumptions and conduct risk analysis<\/a><\/li><li><a href=\"#h-8-foster-transparency-with-donors-and-supporters\" data-level=\"3\">8. Foster transparency with donors and supporters<\/a><\/li><li><a href=\"#h-9-track-progress-and-update-your-plan\" data-level=\"3\">9. Track progress and update your plan<\/a><\/li><\/ul><\/li><li><a href=\"#h-example-of-a-financial-planning-for-non-profit-organisations\" data-level=\"2\">Example of a financial planning for non-profit organisations<\/a><ul><li><a href=\"#h-revenue-projections\" data-level=\"3\">Revenue projections<\/a><\/li><li><a href=\"#h-expense-breakdown\" data-level=\"3\">Expense breakdown<\/a><\/li><li><a href=\"#h-financial-projections\" data-level=\"3\">Financial projections<\/a><\/li><li><a href=\"#h-transparency-strategy\" data-level=\"3\">Transparency strategy<\/a><\/li><li><a href=\"#h-monitoring-plan\" data-level=\"3\">Monitoring plan<\/a><\/li><\/ul><\/li><li><a href=\"#h-final-thoughts\" data-level=\"2\">Final thoughts<\/a><\/li><li><a href=\"#h-faqs-about-non-profit-financial-planning\" data-level=\"2\">FAQs about non-profit financial planning<\/a><ul><li><a href=\"#h-1-do-i-need-a-financial-advisor-for-my-non-profit-organisation\" data-level=\"3\">1. Do I need a financial advisor for my non-profit organisation?<\/a><\/li><li><a href=\"#h-2-what-financial-metrics-should-i-track-for-my-non-profit-organisation\" data-level=\"3\">2. What financial metrics should I track for my non-profit organisation?<\/a><\/li><\/ul><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-does-your-non-profit-need-a-financial-plan\"><strong>Why does your non-profit need a financial plan?<\/strong><\/h2>\n\n\n\n<p>If you\u2019re wondering why your organisation needs a financial plan, the answer is simple\u2014it forms the backbone of your financial and operational structure.<\/p>\n\n\n\n<p>A good financial plan should give your team the tools they need to set realistic goals, track income and expenses, and make informed decisions.<\/p>\n\n\n\n<p>It helps you anticipate and prepare for financial and operational changes, adapting with confidence. <\/p>\n\n\n\n<p>Strong financial planning also builds donor trust and supports long-term sustainability, allowing your non-profit to maximise its impact, sustain programmes, and invest in future growth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-9-steps-for-non-profit-financial-planning\">9 steps for non-profit financial planning<\/h2>\n\n\n\n<p>Creating a financial management plan for your non-profit is key to supporting its longevity and impact.<\/p>\n\n\n\n<p>This process involves evaluating every aspect of your finances, from income to expenses, and addressing the \u201cwho\u201d, \u201cwhat\u201d, and \u201cwhy\u201d behind each transaction.<\/p>\n\n\n\n<p>To get you started, this guide offers a handy step-by-step outline of what to consider when building a comprehensive and effective financial plan for your non-profit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-understand-your-non-profit-model\">1. Understand your non-profit model<\/h3>\n\n\n\n<p>Before diving into numbers, take the time to understand your organisation\u2019s structure and funding sources.<\/p>\n\n\n\n<p>While generating profit isn\u2019t the goal of your non-profit, having the capacity to create profit allows your organisation to reinvest in projects and continue fulfilling its mission.<\/p>\n\n\n\n<p>Identifying your non-profit\u2019s primary revenue stream lays the foundation for your financial plan, guiding resource allocation, anticipating funding cycles, and managing income variability.<\/p>\n\n\n\n<p>Common revenue streams include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Donations<\/li>\n\n\n\n<li>Grant funding<\/li>\n\n\n\n<li>Earned income<\/li>\n\n\n\n<li>Membership dues<\/li>\n\n\n\n<li>Programme fees or service charges<\/li>\n\n\n\n<li>Corporate sponsorships.<\/li>\n<\/ul>\n\n\n\n<p>Knowing exactly where all your funding comes from will help your team build a stronger, more flexible financial strategy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-align-your-budget-with-past-performance-and-strategic-goals\">2. Align your budget with past performance and strategic goals<\/h3>\n\n\n\n<p>Budgeting is one of the top five internal challenges for non-profit leaders.<\/p>\n\n\n\n<p>A well-structured budget helps your non-profit to allocate resources strategically, supporting a clear income and expense plan.<\/p>\n\n\n\n<p>Reviewing past budgets and financial reports is the key to understanding spending patterns and identifying areas for improvement.<\/p>\n\n\n\n<p>Analysing historical financial data offers valuable insights into where funds may have been underutilised or overspent, helping refine your financial strategy.<\/p>\n\n\n\n<p>As your non-profit grows, relying on spreadsheets alone may no longer be enough.<\/p>\n\n\n\n<p>Upgrading to tailored <a href=\"https:\/\/www.sage.com\/en-gb\/accounting-software\/financial-planning-software\/\">financial budgeting and planning software<\/a> can further enhance the budgeting process by automating data collection and analysis, making it easier to identify trends and generate detailed reports.<\/p>\n\n\n\n<p>With real-time updates, improved accuracy, and smoother reporting, your team can create a budget that truly supports your non-profit\u2019s strategic goals.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-analyse-market-trends-and-community-needs\">3. Analyse market trends and community needs<\/h3>\n\n\n\n<p>Like any other organisation, it\u2019s important for your non-profit to keep up with external factors, such as economic trends and shifts in community needs.<\/p>\n\n\n\n<p>For example, economic instability can lead to increased competition for funding, fluctuations in revenue streams, and shifts in donor behaviour that impact your potential income, priorities, and commitment levels. <\/p>\n\n\n\n<p>Analysing and keeping on top of these trends allows your team stay proactive, making sure your financial plan reflects your field\u2019s current and emerging opportunities and challenges.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-account-for-overhead-expenses\">4. Account for overhead expenses<\/h3>\n\n\n\n<p>While programme expenses are central to your non-profit\u2019s mission, covering overhead costs such as salaries, rent, utilities, and technology is equally important for maintaining smooth operations.<\/p>\n\n\n\n<p>Being upfront about these expenses in your budget helps donors and stakeholders understand the true costs of sustaining your organisation.<\/p>\n\n\n\n<p>Overhead costs can include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Employee compensation:<\/strong> salaries, benefits, and payroll taxes for staff members<\/li>\n\n\n\n<li><strong>Office expenses:<\/strong> rent, utilities, office supplies, and maintenance costs<\/li>\n\n\n\n<li><strong>Technology and software:<\/strong> accounting, donor management, and communication tools<\/li>\n\n\n\n<li><strong>Administrative costs: <\/strong>insurance, legal fees, and other general expenses required to keep the organisation running.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-implement-an-organised-non-profit-accounting-system\">5. Implement an organised non-profit accounting system<\/h3>\n\n\n\n<p>Traditional accounting systems using spreadsheets often involve a lot of time-consuming, manual tasks, such as downloading CSV files, copying and pasting data, consolidating reports, emailing files, and updating forecast models, formulas, and links.<\/p>\n\n\n\n<p>Much of this work can be tedious and prone to errors, especially when multiple team members are working on the same spreadsheet.<\/p>\n\n\n\n<p>Aside from the risk of mistakes, manging your financial information in this way also raises concerns about data security.<\/p>\n\n\n\n<p>By contrast, effective, automated accounting software tailored for non-profit operations removes the need for manual data entry and keeps your data safe and secure.<\/p>\n\n\n\n<p>It enables accurate tracking of funds from various sources, categorising expenses by programme, and managing restricted versus unrestricted funds effectively.<\/p>\n\n\n\n<p>Non-profit-specific accounting solutions will typically also automate plan management, budgeting, and forecasting.<\/p>\n\n\n\n<p>These tools consolidate and streamline reporting, simplify <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/intacct\/product-capabilities\/extended-capabilities\/grants-tracking-billing\/\" target=\"_blank\" rel=\"noreferrer noopener\">grant tracking<\/a>, and enhance overall financial transparency.<\/p>\n\n\n\n<p>They provide clear visibility into how your financial plan is built and aligned with your short, mid, and long-term goals.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-6-project-income-and-expenses\">6. Project income and expenses<\/h3>\n\n\n\n<p>Creating projections provides a roadmap for managing your organisation\u2019s resources over the next year or longer.<\/p>\n\n\n\n<p>Accurate projections depend on a clear understanding of past performance and future goals. <\/p>\n\n\n\n<p>Make sure your projections cover the following the non-profit financial statements:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-income-statement-statement-of-activities\">Income statement\u2014Statement of activities<\/h4>\n\n\n\n<p>An income statement summarises your revenue resources and expenses over time, highlighting programme efficiency and financial health.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-balance-sheet-statement-of-financial-position\">Balance sheet\u2014Statement of financial position<\/h4>\n\n\n\n<p>The balance sheet provides a clear snapshot of your non-profit\u2019s financial health by detailing its assets, liabilities, and net assets at a specific time.<\/p>\n\n\n\n<p>This statement is an important tool for assessing financial stability, showing what your organisation owns, what it owes, and its overall net worth.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cash-flow-statement\">Cash flow statement<\/h4>\n\n\n\n<p>Tracking cash inflows and outflows through a non-profit cash flow statement is crucial for managing liquidity.<\/p>\n\n\n\n<p>This statement helps to make sure your organisation has the funds available to meet expenses when needed, supporting smoother operations and financial stability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-7-evaluate-underlying-assumptions-and-conduct-risk-analysis\">7. Evaluate underlying assumptions and conduct risk analysis<\/h3>\n\n\n\n<p>Financial planning is more than the numbers\u2014anticipating potential challenges and creating a plan for them helps you navigate them.<\/p>\n\n\n\n<p>Take a close look at your assumptions about funding, expenses, and operations to identify any risks or weaknesses in your financial plan.<\/p>\n\n\n\n<p>Running scenario planning exercises can help you prepare for unexpected changes, such as funding cuts or economic downturns.<\/p>\n\n\n\n<p>Additionally, setting up a contingency fund can provide a financial safety net, making sure your non-profit stays resilient no matter what comes your way.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-8-foster-transparency-with-donors-and-supporters\">8. Foster transparency with donors and supporters<\/h3>\n\n\n\n<p>Transparency is at the core of building and maintaining trust with your donors and supporters.<\/p>\n\n\n\n<p>From the start of the financial planning process, keeping clear and organised documentation of your financial practices is key.<\/p>\n\n\n\n<p>Your financial plan should be measurable, with clear success metrics shared with donors.<\/p>\n\n\n\n<p>Regularly updating them with financial statements, budget reports, and the impact of their contributions reassures them that their support is making a difference.<\/p>\n\n\n\n<p>This step strengthens donor relationships and fosters continued support.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-9-track-progress-and-update-your-plan\">9. Track progress and update your plan<\/h3>\n\n\n\n<p>Financial planning for your non-profits is not a one-time event; you\u2019ll need to commit to ongoing tracking and adjustments.<\/p>\n\n\n\n<p>Regularly reviewing performance, comparing actual results to projections, and adjusting your budget as needed give your team greater control over your plan.<\/p>\n\n\n\n<p>Keeping your strategy up to date will also better enable your non-profit to respond to changes, optimise resources, and continuously align financial goals with your mission.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-example-of-a-financial-planning-for-non-profit-organisations\">Example of a financial planning for non-profit organisations<\/h2>\n\n\n\n<p>To give you a clearer picture of how these steps come together, here\u2019s a simple example of top-level financial planning for a non-profit organisation in action.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Mission:<\/strong> imagine your non-profit provides after-school programmes for under-resourced children in your community.<\/li>\n\n\n\n<li><strong>Annual budget: <\/strong>\u00a3200,000.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-revenue-projections\">Revenue projections<\/h3>\n\n\n\n<p>Projecting revenue helps you establish realistic income goals. In this case, funding comes from multiple sources:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Donations: <\/strong>\u00a360,000<\/li>\n\n\n\n<li><strong>Grants: <\/strong>\u00a380,000<\/li>\n\n\n\n<li><strong>Fundraising events: <\/strong>\u00a330,000<\/li>\n\n\n\n<li><strong>Corporate sponsorship:<\/strong> \u00a320,000<\/li>\n\n\n\n<li><strong>Membership fees:<\/strong> \u00a310,000.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-expense-breakdown\">Expense breakdown<\/h3>\n\n\n\n<p>Breaking down expenses enables precise allocation for your programme needs and operational costs.<\/p>\n\n\n\n<p>This example non-profit\u2019s expenses are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Staff salaries:<\/strong> \u00a390,000<\/li>\n\n\n\n<li><strong>Programme supplies: <\/strong>\u00a330,000<\/li>\n\n\n\n<li><strong>Rent and utilities: <\/strong>\u00a320,000<\/li>\n\n\n\n<li><strong>Fundraising expenses: <\/strong>\u00a315,000<\/li>\n\n\n\n<li><strong>Marketing and outreach: <\/strong>\u00a310,000<\/li>\n\n\n\n<li><strong>Technology and software:<\/strong> \u00a35,000<\/li>\n\n\n\n<li><strong>Administrative costs:<\/strong> \u00a330,000.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-financial-projections\">Financial projections<\/h3>\n\n\n\n<p>Planning ahead helps your organisation prepare for growth and manage risks.<\/p>\n\n\n\n<p>In this example, the non-profit plans toward both positive and negative outcomes to deliver contingencies for both.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Expected surplus:<\/strong> \u00a310,000 (planned for reinvestment into programme expansion)<\/li>\n\n\n\n<li><strong>Risk analysis: <\/strong>if grant funding decreases by 10%, adjustments to the fundraising strategy may be necessary to fill the gap.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-transparency-strategy\">Transparency strategy<\/h3>\n\n\n\n<p>The example non-profit updates donors regularly, breaking down revenue and expenses into a clear annual report.<\/p>\n\n\n\n<p>All stakeholders can see what has been done, and what is on the horizon.<\/p>\n\n\n\n<p>Keeping your donors and stakeholders informed builds trust and encourages continued support. <\/p>\n\n\n\n<p>Consider these approaches:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Quarterly donor updates: <\/strong>share programme outcomes and financial status updates to maintain transparency<\/li>\n\n\n\n<li><strong>Non-profit annual report:<\/strong> include a detailed breakdown of revenue and expenses, with testimonials from programme participants to demonstrate impact.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-monitoring-plan\">Monitoring plan<\/h3>\n\n\n\n<p>Regular financial reviews help keep your non-profit on track and adaptable to change:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Monthly budget review:<\/strong> compare income and expenses against projections to make timely adjustments<\/li>\n\n\n\n<li><strong>Annual financial review: <\/strong>reassess financial projections and refine strategies based on the year\u2019s performance.<\/li>\n<\/ul>\n\n\n\n<p>The example non-profit leads with clear financial data and donor transparency.<\/p>\n\n\n\n<p>It ensured both best and worst-case scenarios had a fully thought-out plan which can be refined as things change.<\/p>\n\n\n\n<p>Offering ongoing budget insight and strategic beats that can be adjusted easily will help build confidence in your mission and help guarantee its success.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-final-thoughts\">Final thoughts<\/h2>\n\n\n\n<p>A complete financial plan provides a roadmap to manage resources effectively, align budgeting with strategic goals, and maintain transparency with donors and stakeholders.<\/p>\n\n\n\n<p>By following these nine steps, your non-profit can assess its financial health, anticipate future needs, and adapt to change, fostering responsible growth and long-term resilience.<\/p>\n\n\n\n<p>Looking for ways to simplify your financial planning?<\/p>\n\n\n\n<p>Explore how our <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/intacct\/industries\/non-profit\/\" target=\"_blank\" rel=\"noreferrer noopener\">non-profit accounting and management software<\/a> can help streamline budgeting, optimise resource allocation, and improve oversight, so you can focus on making a greater impact.<\/p>\n\n\n\n<p>Build a solid foundation for sustainable success and lead your non-profit with confidence.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs-about-non-profit-financial-planning\">FAQs about non-profit financial planning<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-do-i-need-a-financial-advisor-for-my-non-profit-organisation\">1. Do I need a financial advisor for my non-profit organisation?<\/h3>\n\n\n\n<p>If you\u2019re a medium or large non-profit organisation with strong financial teams and financial planning and analysis (FP&amp;A) experts, you may not always need external financial advisors.<\/p>\n\n\n\n<p>You will likely already have access to significant in-house expertise and be equipped with advanced financial planning tools.<\/p>\n\n\n\n<p>However, a financial advisor can still offer valuable support by assisting with strategic decisions related to investment portfolios, risk management, tax strategies, and developing a comprehensive financial plan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-what-financial-metrics-should-i-track-for-my-non-profit-organisation\">2. What financial metrics should I track for my non-profit organisation?<\/h3>\n\n\n\n<p>Monitoring the right financial metrics is essential for understanding your non-profit\u2019s funding model, revenue, cash flow, expenses, and debt management.<\/p>\n\n\n\n<p>Key metrics to track include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Funding model and revenue<\/li>\n\n\n\n<li>Cash flow and sustainability<\/li>\n\n\n\n<li>Expenses and efficiency<\/li>\n\n\n\n<li>Debt management.<\/li>\n<\/ul>\n\n\n\n<p>By tracking these metrics, your non-profit can maintain financial health, improve transparency with stakeholders, make better-informed decisions, and initiate strategic adjustments to support sustainability and growth.<\/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 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\/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn what to consider when creating a financial plan for non-profit organisations, from understanding your model to integrating an accounting system.<\/p>\n","protected":false},"author":1774,"featured_media":16349,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[6],"tags":[135,159],"business_type":[3],"lilypad":[],"context":[],"industry":[],"persona":[68,71],"imagine_tag":[77,96,99],"coauthors":[355],"class_list":["post-21686","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-business-finances","tag-midsized-business","business_type-medium-sized-business"],"sage_meta":{"region":"en-gb","author_name":"Yassir Malik","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1410117395.jpg","imagine_tags":{"77":"Accounting software","96":"Medium 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