Not for profit exposure and financial health 2024

With the financial year behind us, many NFPs are looking at innovative and enterprising ways to continue to service their mission within tightening financial climates. While donors and grants are crucial to a NFP’s financial sustainability, organisations cannot only rely on these two financial sources. For most NFPs now more than ever requires professional financial oversight to ensure their organisation is financially healthy and compliant and they should be thinking outside of traditional funding models to enhance their exposure and their financial positioning.

Revitalising your organsiational strategy is crucial as you look toward the latter half of 2024. This effort isn’t merely about tightening the purse strings but leveraging innovative operational models to create new revenue opportunities. With the right approach, you can improve your financial health and the scope of your mission.

In previous articles, during 2024, we have discussed strategic alliances with businesses and other Not For Profits to open doors to new funding sources and shared resources. Don’t overlook the potential of collaborating on projects, events, or campaigns. It’s all about creating a symbiotic relationship that benefits all parties involved.

As Helen Keller once said, “Alone, we can do so little; together, we can do so much.”

As we prepare this article, it would not be without reason to assume that other NFPs are also considering strategic alliances for this exact reason. By taking the initiative and identifying other organisations with aligned synergies, you are one step closer to making a positive and beneficial connection.

Collaborating with like-minded organisations to co-host events, share marketing efforts, and combine expertise has a flow-on effect. By pooling resources, you can achieve more significant outcomes and broaden your audience.

Consider forming alliances with corporate partners. These partnerships can unlock new funding opportunities, provide in-kind support, and enhance credibility. When approaching corporations, highlight the mutual benefits of the collaboration, such as increased brand exposure and positive social impact. Not-for-profit organisations that utilise corporate partnerships report a 40% increase in funding. While this is impressive, 70% of donors prefer to support NFP organisations that demonstrate financial sustainability, another factor where partnerships send a powerful message to donors on progressive innovation and economic leadership.

Now is a great time to put in place frameworks for evaluating programs and critically examine their effectiveness and cost models. Are they having the designed impact, and are they cost-effective? While applying a monetary value is constraining, seeking professional financial oversight and recommendations can expose areas of improvement that can see programs flourish rather than flounder. By applying a financial lens, most programs have enhanced opportunities to deliver. Without such a lens, they can potentially drain an organisation’s finances and lose the lustre they need to succeed.

Embracing an enterprising mindset enables NFPs to develop new services or products that align with the mission and generate additional revenue streams. This supports financial sustainability and fosters a culture of continuous improvement much sought after by the donor community.

Your organisation is well aware of the impact it makes on the mission it serves. Now is an excellent opportunity to spread that message to a broader audience. by enhancing your online presence. Utilise social media platforms to engage with your community, share success stories, and promote upcoming events. Investing in affordable and targeted digital marketing strategies provides an opportunity to increase visibility and attract potential donors and volunteers. Use these platforms and your online presence to communicate your impact. Case studies and stories that illustrate your value are a valuable commodity that showcases the effectiveness of your programs and the tangible benefits of donations.

Accounting For Good is a professional accounting and financial services firm that specialises in the not-for-profit sector.

We offer a comprehensive range of accounting skills and substantial management expertise tailored to NFPs. We are equipped to deliver high-level CFO services to financial consultancy services including financial systems assessment, reporting and Xero implementation.

We collaborate with you to address intricate financial management challenges and can offer expert advice to help navigate and maximise the second half of 2024.

We work with NFP’s with a turnover of $1M or more. If you NFP is in this category and is seeking professional and experienced financial management and accounting services don’t hesitate to speak with one of our team members today.