Part Two: Build a Financially Strong Nonprofit with Cash Flow Management

Guest post by: Erica McGeachy Crenshaw
Become an Author

Free PDF Download
Are Nonprofits Funding Their Priorities - By Erica McGeachy Crenshaw

A lecturer and author of The Zone of Insolvency underscores the importance of cash reserves. Cash flow management is among his list of essential characteristics of financially strong nonprofits. Strong discipline with cash flow includes the following:

Weekly or daily monitoring of cash position,
Projections of cash flow for the upcoming 12 months and a
Board policy requiring minimum levels of cash reserves to even out seasonal fluctuations of income.

Leaders who rely on accrual-based financial statements without paying attention to cash position will inevitably be blindsided by a cash crisis.

Without these projections to manage your cash reserves, your organization’s leadership is forced to focus on survival and crisis management, rather than long-term strategic planning and development or improvement of program quality. Unfortunately, limited resources beget limited resources.

To do: Make it a management priority to examine and adjust your cash flow so you can boost your organizational capacity and responsiveness to unforeseen fiscal demands.

Refer to my first post on this subject when I explain more about setting cash flow goals and acknowledging the factors that may impact cash flow.

Cash Management

Financial Cash Flow Management: Tips to Improve the Cash Flow of Organization

How much cash does your business generate?

Failure & Success – Let Mezzanine Financing & Subordinated Cash Flow Loans Be The Difference !

Canadian Business Loans – is my Cash Flow really free? And how Free is It!

Know The Happiness Formula For Cash Flow Financing And Working Capital Problems ?

Cash Flow Forecasting

Creating cash flow forecasts

Internet Cash Flow-Finding A Cash Flow Business

CASH FLOW - You're Forgiven for Misunderstanding the Term!

Three Sure Signs That Your Business Will Run Out of Cash – And What To Do About It

Business Cash Flow Finance And Working Capital . Out With Old Problems And In With New Solutions

Inventory Management - Automated Systems

When Cash Flow Problems Become A Crisis . The Power Of Proper Financing Solutions

Starting a Non-Profit

How Canadian Cash Flow Finance & Mezzanine Lending & Financing Differs From Lenders Offering ABL Solutions

Business Cash Flow Financing Problems ? Here’s Some Solutions

Inigo Montoya’s Guide to Cash Flow Financing . The Business Working Capital Loan demystified !

How Factoring Brokers Can Achieve Their Resolutions

Working Capital And Business Cash Flow Problems?

Home > Business-Coach > Erica McGeachy Crenshaw > Part Two Build a Financially Strong Nonprofit with Cash Flow Management > Google +

Free PDF Download
Are Nonprofits Funding Their Priorities - By Erica McGeachy Crenshaw

About the Author: Erica McGeachy Crenshaw

RSS for Erica's articles - Visit Erica's website
Erica McGeachy Crenshaw, a former Wall Street equity research analyst with 16 years of finance experience, left leading global investment bank Goldman Sachs in 2002 upon purchasing the New York City rights to AmeriSpec Home Inspection Service, the leading home inspection company in North America with over 400 offices throughout the U.S. and Canada. She subsequently acquired four additional territories in Long island, NY. Within seven years, Mrs. Crenshaw grew the business at a rapid clip and became one of the top 20 franchise owners in the AmeriSpec system within three years.
While running AmeriSpec, Mrs. Crenshaw launched Execute Now!, a finance and accounting firm. The firm is focused on two types of clients: non-profit organizations including charter schools and private companies with up to $20M in revenue. Execute Now!'s historical emphasis has included contract-CFO assignments on behalf of small to medium-sized companies, assisting clients in raising private debt and equity capital, and coaching business owners on how to successfully launch and grow their businesses.

In recent years, the firm has expanded into providing day-to-day finance and accounting services to non-profit organizations and private companies. Each Execute Now! client has a team of professionals focused on providing accurate and timely financial reports, financial leadership, and superior service.

The team approach provides stability, additional oversight, and a required segregation of duties. Mrs. Crenshaw's background also includes leadership at a start-up charter school in New Orleans where she was the founding finance director. Mrs. Crenshaw developed and managed Benjamin E. Mays Preparatory School‘s $2.1M budget. At the end of her tenure, the school had free cash flow and operating margins of 6%, which is above the industry norm of 4%.
In addition to being invited by organizations to speak to other entrepreneurs around the country, Mrs. Crenshaw has also been featured in several newspapers and magazines such as Essence Magazine, Black Enterprise, New York Post, Real Estate New York Magazine, The New York Amsterdam News, and various radio programs within New York City. In addition, she has been recognized by the NYC Commission on Women's Issues as an exceptional role model for other would-be entrepreneurs across the country.
Click here to visit Erica's website.

More from Erica McGeachy Crenshaw
FINANCIAL LEADERSHIP THE DIFFERENCE BETWEEN SURVIVAL AND INSOLVENCY FOR NONPROFITS
Its Not What You Say But How You Say It
Part Two Is Your Organization Thirsty for Overhead Support
Part Two Build a Financially Strong Nonprofit with Cash Flow Management
Is your Nonprofit a Statistic

Share this article. Fund someone's dream.

Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Part Two: Build a Financially Strong Nonprofit with Cash Flow Management

Related Articles

Related Forum Posts

Share this article. Fund someone's dream.


Name:
Email: