Fundraising, Finances, and your Future

At the Catalyst Center for Nonprofit Management we are planning for this year's seminar topics.  When we look at the popular topics for past sessions, fundraising is always the most popular.  Topics around managing your finances are not as popular.

Why is this?  Fundraising seems to promise the possibility of more money.  Fundraising can increase revenues.  It may be also assumed that finances are harder to understand.  What is often overlooked is that financial management will impact your revenues and expenses.   Fundraising without proper financial management will be less effective.  You could increase revenues but still not increase your bottom line.

This article in the February 2014 issue of INC magazine tells the story of the Murder Mystery Company.  The business was growing rapidly but finances were out of control.  By getting a handle on the finances, the Company was able to decrease spending by tracking activity; capture revenue that they were losing; and develop a new revenue stream.

So as we look to the coming year we will still offer course in both fundraising and finances.  We hope to increase the attendance at the financial sessions.  We frequently get comments about our financial training from our attendees.  They note that the topics are taught in practical, easy to understand laymen terms.  We offer follow up assistance from our sister company the accounting firm Bee, Bergvall & Co.  Our goal is that our nonprofit community is better equipped to increase both the top line and the bottom line.

“The Millionaire Next Door” applies to Nonprofits too

In their book “The Millionaire Next Door” authors Thomas J. Stanley and William D. Danko, systematically illustrate the point that the secret to becoming a millionaire has nothing to do with your inheritance, your nationality, or even the job that you have, it is a function of saving more than you spend. They provide example after example and study after study back up their point. This is another great application for nonprofits to apply in financial management. Spend less than you earn. Save money.

Nonprofits argue—we can’t do that. The needs are too great.

Let’s look at this from another angle. When a nonprofit has cash flow problems and is always running short on funds, how much time is spent trying to figure out which bills to pay first, calling creditors, paying late fees, etc. That is time that could be better spent meeting those needs. Instead it is wasted time and costly decisions are sometimes made in haste. And it is all because the nonprofit did not live within its means. Think what you could do with more money. Want to have more money in the future? Manage it well in the present.