Financial Management Initiative Program
The Federation is launching a Financial Management Initiative (FMI) to provide its nonprofits with short-term and long-term financial management tools needed for their sustainability and success. The Federation’s FMI will create individualized agency assessments and work plans, and guide executive directors and key fiscal staff through one on one consulting services, webinars and group workshops.
Some key concepts include:
- Managing operating budgets and cash flow, including preparing cash flow statements, projections and forecasts
- Budgeting, cost analysis and grants management
- Cost reduction strategies
- Developing and managing cash reserves
- Defining fiscal staff roles and responsibilities and internal controls
- Financial analysis, including balance sheet and state of activities analysis; break even and ratio analysis
The nation’s economic downturn has placed an incredible financial strain on the nonprofit sector. The recession is hitting nonprofits in two ways: (1) by increasing demand for social services without commensurate increases in funding from federal, state and local governments; and (2) by decreasing corporate and individual charitable contributions. This reality is having an especially debilitating impact on the Hispanic nonprofit sector, which is large and vibrant but relatively young and undercapitalized. Many of the Federation’s community based organizations lack cash reserves, sophisticated accounting and fiscal reporting systems, and are unable to generate ongoing financial reports that can assist them in weathering the severe impact of the current recession.
For agencies selected for more intensive services, direct support will be provided in enhancing fiscal management systems and infrastructure. If you are interested in having your agency participate in this special training initiative, please contact Carmen Piñero.