Nonprofit Finance Steps to Consider During a Recession
By: Taylor Fernley
Is a recession just around the corner? Explore the nonprofit finance management steps you should consider to prepare for the inevitable.
Is anyone as concerned as I am on the timing of the next ‘great recession’? The fact that we are in the 11th year of economic expansion only gives me more cause for alarm. Add to it China, Brexit and the Feds and my sound sleeping habits are now few and far between.
Knowing a recession is coming, but just do not know when, what then are we doing to prepare for it. Just recently, I attended a presentation by an economist at Bank of America who offered some insightful strategies for small businesses to embrace as we prepare for what is around the corner (we just don’t know WHAT corner).
With liquidly being key in economic downturns, here are three nonprofit finance steps to consider:
Give Your Cash Flow a Check-Up.
If cash levels are dropping during regular operation, it may be a sign that things are out of balance.
Open Lines of Communications.
Speak frequently with you clients and suppliers. Ask them about their business, what they are excited about and their challenges; and
Tighten Your Collections Policies.
To prepare for a possible downturn, carefully review how reliably your clients/customers pay what they owe and create a watch list of those who consistently lag.
At the end of the day, it is all about preparation. If you feel that your organization could use a refined and proactive nonprofit finance management upgrade, contact us today. We’d be happy to explore your options and offer suggestions to protect your organization during the economic roller coaster.
For more information, please visit www.Fernley.com.
Contact: G.A. Taylor Fernley