Giving Tuesday may provide gifts for your nonprofit, but
most of us need more than one Giving Tuesday! Financing your nonprofit programs
through charitable giving is a cliff hanger because gifts come and go quickly.
You probably have discovered that.
I just analyzed the 990’s of a large, wonderful nonprofit in
New York City.
BUT I WAS SHOCKED
Their gifts dropped from $120 million to $70 million in one
year. I couldn’t believe it. I have a friend that knows them and she said that
gifts from hedge funds really have been their major source of funding. In bad
years, the hedge fund gifts go away.
For Giving Tuesday, I’m giving two hours of coaching in December to five nonprofit leadership teams. APPLY HERE I’ll review your 990’s, answer questions, and share a couple of tools as appropriate. Good advice never disappears or loses value!
I’m getting more requests than I can honor but its free to
And I truly hope your finances get a major boost on Giving Tuesday
Ronald Dale Tompkins
Certified NonProfit Teams Coach
Federal cash for social programs will drop massively by 20%
Federal cash for NonProfits is lowest in 40 Year Average of GDP.
In 2019, it drops to 11.1%.
Social Security and Medicare costs place incredible pressure
to shrink community development, education, arts, afterschool, LGBT civil
rights, etc. Some of that money flows to
states and cities and then to your agency –it’s drying up by 10% right now. I
see frantic responses to save great programs that are cash starved,
Contributions are declining. Tax Law changed in 2017 so there is no tax benefit for most people to make a gift.
Religion is quickly declining. Religion has been an important teacher about charity and volunteering. Belief has dropped 12% in a decade.
On Giving Tuesday, I’m offering five NonProfit leadership teams relief from the stress. Apply here. It’s not a miracle but you may get a new direction. I’ll give a two hour coaching session to each team over the holidays. There is no cost at all. Part of the discussion will be planning multiple cash streams to keep your agency stable. I use the proven Four Decisions system (People, Strategy, Execution, Cash).
Apply here. Like the lottery, the only way to win is to try! I hope the best for you.
Leaders get lost in a fog of numbers when they only need 7 Key Financials to make decisions.
I hope that you can join me at OpCon, June 13th, where I will be on a panel “What Nonprofits Need to Know About Nonprofit Accounting and Finance”. If you come with a CPA, bring aspirin as they recover from an encounter with a Management Accountant. If you’re a CEO, bring champagne to celebrate as you learn about 7 numbers that actually help you manage your agency.
In my book “Doing Bad at Doing Good”, I discover that the best nonprofits have an Operations Budget model that only requires 7 key financials. I’ll have copies of that available for attendees!
I stopped rolling pennies to take to the bank. I realized that I can only fill, tape, and address a roll of 50 cents every five minutes. My maximum profit is $6.00 per hour and it’s cheaper to use the machine at the grocery store!
Now the same process is happening at the school that I direct. 75% of the money that parents pay is with an app that we provide for their phone. The payment flows directly to the bank for the school and eliminates a physical deposit. The software automatically updates their account on student billing and also adds the revenue to the general ledger. Several tasks are reduced or eliminated.
Now the school is automating accounts payable for trusted vendors. And preparations are underway for triple entry bookkeeping with Blockchain to pay all vendors automatically. There will be no more audit sampling because every transaction will be proven with blockchain.
What does it mean for you as a leader? Accounting staff positions are changing steadily. Will anything be left? How should you arrange your projected Operations Budgets?
The Institute of Management Accountants just had the slide below in a presentation. It shows that nonprofits will still need an accountant who gives financial advice for management decisions. And your budget should include more money for the software that automates the transactions.
Are you leading a nonprofit and don’t feel prepared for the winds of change? Check with me because Cash and Execution Decisions are part of business coaching.