Accessing Working CapitalOn June 24th, FMA recently hosted the Speakers' Series, Accessing Working Capital, at the Chicago Cultural Center. Over 100 nonprofit executives attended the event, which focused on the best practices of building reserves, conversations with board members about accessing reserves, and the changing role of bankers and lines of credit. The panelists for the speakers’ series included Harry Wells, CEO from Chicago Youth Center, Denis Hurley, CFO from Metropolitan Family Services, David Crossett, a Board Member at Gads Hill Center, and Clare Golla from Shore Bank. Current economic conditions, including delayed state payments, reduction in government contracts, and an increased demand for services have forced nonprofits to change the way they do business. In light of this, key messages from the panelists included strategies around cash, credit and communication: Cash: Re-evaluate and re-forecast. Organizations should continually examine their programs – is it important to the mission, bleeding the budget, or too high of a risk? Organizations should also conduct regular re-forecasts of the budget. Nonprofit organizations should project cash flow needs monthly. Accurate and advanced planning can help organizations weather the storm and put tools in place to cover any budgetary shortfalls. Credit: The best time to acquire credit is when the organization is strong. Banks are still giving lines of credit but they are requiring contingency plans, in today’s economy, they want to see Plan A and Plan B. Communication: “No one likes surprises.” Communication is the key. Emphasis is placed on the continual need for communication between your Finance Committee, Banker and Management Team. The Event Materials are below: Presentation Speaker Bios |
AccessingWorkingCapital
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