Finance Questions to Consider: A Checklist CHECKLIST PARTIES INVOLVED ACTION/STATUS Understand Your Balance Sheet What is your asset composition-- Cash? Receivables? Investments? Will it be necessary to take on debt or renegotiate existing debt? Do you currently have board-designated reserves? Will you need to dip into these reserves? If you have a facility, how will you address maintenance issues? What is your investment strategy and how are current investments withstanding this recession? Assess Your Liquidity How many months of cash and months of liquid net assets does your organization have? What's your working capital? Do you project and monitor cash flow on a monthly basis? Will there be less cash on hand for operations? If so, what strategies will you implement to cope? CHECKLIST PARTIES INVOLVED ACTION/STATUS Quantify the Challenge Ahead Which revenue streams are most at risk in this recession? How might changes in revenue affect operating results? Have you incorporated contingency plans into your budgets and/or reforecast? Does your organization consider best case, probable case and worst case scenarios? Communicate with Stakeholders Can you articulate the economics of your programs? Is your Board regularly reviewing your financial condition and encouraging action in response to this recession? Does your fundraising message reflect the strongest case for your impact and accomplishments? Develop an Organizational Response Will the recession lead to increased demand for services and, if so, how will you respond? Can you rely on your Board to compensate for any other funding losses? Have you considered collaboration as a cost-saving strategy? What is the long-term capital need? Will growth and capital campaign plans need to be phased or delayed?
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