Posts Tagged ‘Financial Situation’

There’s no question about it: we are seeing the most challenging economic times since the Great Depression. Every day, we read about lost jobs at this company or that, but when was the last time you heard about lost jobs and closing doors at a non-profit organization?

Well, it’s true; it’s actually happening. The non-profit sector is struggling in a big way. The timing could not be worse: we rely on so many non-profits to provide their services – from soup kitchens to health care – and the prospect of scaling back (or closing their doors) is happening when they are more desperately needed than ever in communities, both large and small, all over the country. As a point of reference, we must remember that an organization receives its IRS non-profit status only after proving its charitable benefit to the constituency it serves.

If we review the series of key events over the past months, several specific issues have combined to form that so-called ‘perfect storm’ – we have just completed the most expensive presidential campaign in the history of our country (and, before Obama could deliver his acceptance speech on election night in Chicago, many people were already very seriously concerned about the economy), state budgets have been squeezed, many of the failing private-sector organizations (even Freddie and Fannie) were large contributors to the non-profit sector, and individual donors have seen their savings drop more than any other time in their lifetime.

Let’s face it; the magnitude of the current financial situation – and its effects on the non-profit sector – is huge.

But, the purpose of this article is to provide some positive steps to help proactive non-profits achieve success (survival?) even during difficult times. True, just as in the for-profit sector, not all non-profits will survive. We cannot change that fact in a capitalistic society. However, we can encourage non-profits to exude excellence and compete successfully among their peers for precious funding dollars.

I received an email on March 26, 2009 from a group, whose information I try to follow, known as “IT Solution Journal.” The subject line read as follows: “Compliance Rules: Tools, Policies and Best Practices That Are Cost Effective”

Wow! That’s the subject near and dear to my heart: non-profit compliance in the areas of ethics, governance, and accountability. As I have stated in previous articles, I believe that pro-active compliance is a sure way for a non-profit, charitable organization to signal its commitment to excellence.

So, in part, here is what that email had to say:

“Organizations of all types and sizes, industries and professions have long been mindful of the need for legal and regulatory compliance. In the current economic environment, however, forward-thinking organizations now are shifting their focus somewhat. Mere adherence to laws and regulations is no longer enough. Thanks to tight economic conditions and a fiercely competitive business environment, proactive managers and executives are committed to implementing strategic email and Hosted Service management…”

The good news: My experience has been that non-profit organizations have been extremely resilient over the years. And, my belief is that non-profit organizations are better-suited to address a number of our most pressing problems than either the government-sector or the private-sector organizations.

And, the bad news: I am concerned that most non-profits have not been as diligent as they should with their regulatory compliance. To date, the critical document for a non-profit, charitable organization has been the IRS Form 990, filed annually. It is my opinion that this will begin to change more and more (as I have mentioned in previous articles regarding the focus that Congress has placed on non-profit compliance and the increased scrutiny it has mandated to the IRS.

Foundations are watching their endowments drop, thereby making the case for less grant funding and their boards struggle with eroding investment portfolios. The same is true with individual donors. So, how does a struggling non-profit gain an edge?

I have five suggestions:

1. Don’t panic. Now is the time for calm, cool, collected thinking.

2. Make necessary changes. If there are board members or staff members who are not serving the organization adequately, replace them. Now is the time to rally your best and brightest minds and your most ardent supporters.

3. Review your IRS compliance requirements. Make sure you have your policies in place – and, make sure you are following them. Ethics, governance, and accountability measures will speak volumes.

4. If you are fortunate to have an endowment, use it. Avoid watching the stock market numbers every day. Keep your mind focused on the future.

5. Talk to your donor base, membership base, and continue to seek grant funds. This time, however, do it from a position of excellence. Don’t be reluctant to tout the professionalism of your organization over your peers.

In conclusion, this is a time of tremendous challenge; however, it is also a time of exciting opportunities. It’s time for non-profits to compete like never before (not in petty terms) but in all things that exude excellence, confidence, and strong business acumen.

Rob Glenn is the founder and president of The Center for Ethics, Governance, and Accountability (CEGA). His organization seeks to provide non-profit organizations with compliance policies that will provide a competitive edge for grant writing, donations, and charitable support. More information about CEGA can be found at http://www.centerega.com

Author: Rob Glenn
Article Source: EzineArticles.com
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The web based project management is basically a pattern of organization that helps in dealing with the vast projects with maximum capacity. Initially, this management programme was basic but now it has many ways and processes that can help in the organization of huge projects.

It not only organizes the entire system but also tends to manage the financial issues and the monetary sections. If you tend to organize anything in the world, it becomes very efficient; similarly, these web based systems for projects help the project to become efficient and complete on time.

When it comes to the completion or the working on a project, there are a lot of things that need to be taken care of. The team of people must work efficiently to complete the project within the time limit and also with no complaints. However, the budget is a common problem regarding the completion of projects. In situations where budget needs to be managed, the web based project management systems tends to solve this problem as they take care of financial situation and keeps in mind the restraints as well.

The software contributes a lot in the regard of budget. It has a management list of all the available and the needed resources regarding the project. The software gives you a constant reminder of your data in the form of graphs and figures. During the project or in the beginning, the software gives you an idea of your budget and its provisions.

It often happens that various gaps occur during the completion of a particular project, and they cannot be detected manually. But, this management software tends to detect the gaps and mal-functions pre-hand and also, at times, after the project is completed. Any discrepancy regarding the budget can be easily located.

This web based project management programme not only tends to overlook the budget route in the process of the project completion but also takes care of any kinds of risks. It has a backup plan that helps the team members in suffering from as much less loss as possible. This helps the team of workers to work efficiently upon the project with little stress over their minds.

The project management system often guarantees a well-structured process with all the major elements. It helps to allocate the tasks to the users. Various task groups are assigned with their individual tasks. Thus, the project is divided into sections. The priorities are set for quick and proper completion of the project.

Thus, the web based project management is very efficient in terms of budget management and the organization of the project in a sufficient manner.

Learn how the web based project management systems can increase the effeciency of your business.

Author: John J Nash
Article Source: EzineArticles.com
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You do not need a great idea to start a business. A successful business needs time, money, perseverance, and loads of common sense. It is hard to sell a new idea to investors, but an existing one followed diligently can bring profits. There are some common pitfalls that should be avoided while making the business plan.

Mistakes to avoid in business plans:

1. Write down the plan. Prepare a written draft of your business plan. It should be short and concise, containing all the elements of the business in steps. Keep it current and updated. Keep the main points simple and highlighted for quick reference.

2. Do not confuse cash with profit. Cash is the flowing money you spend to buy inventories. Profits are an accounting concept gained after much sweat in business. Delayed customer payments could cripple your financial situation but will not harm the profit. Plan to build an emergency cash fund to survive hard situations. Cash flow is critical; make a cash flow table in your business plan.

3. Do not dilute priorities. Focus on three to four main priorities and work on them to strengthen the business plan. A plan listing twenty priorities will never be able to take off because of an unfocused approach.

4. Do not overvalue the business idea. An idea on paper may look very lucrative but be a disaster in real life. It takes human power to shape it. Building products, shipping, selling and collecting payments, etc., are the realities of business.

5. Do not confuse a plan with planning. The value of a plan is directly related to its implementation. Keep on revising your plan as you work on it in reality. A plan is a basic marker out of which the real planning takes off.

6. Do not fudge the initial details. Keep a detailed account of your financial means, milestones, dates, responsibilities, deadlines, and task assignments while setting activity dates. Specify what is supposed to happen and who is to make it happen. A business plan should have even the smallest details to succeed.

7. Have realistic goals. The objective of a business plan is to achieve the ultimate success in real business. So leave out the vague, hyped, and meaningless babble of business phrases.

8. Hockey-stick growth projection. Be less optimistic and conservative in projecting your business plan. Too much hype can mar its effectiveness in real situations. Investors, too, are wary of high-flying ideas.

9. Financial projections. Present a realistic picture of the anticipated growth of the company.

10. Defined target audience. Define your market and potential customers.

11. Research. Research should be accurate, up-to-date, and verifiable.

12. Hype. Impress investors by the business idea and not superlatives or hyped language.

13. Focus on competition. Give an accurate picture of how you plan to compete and better the competition.

A written business plan is not a doctoral thesis or a novel, so keep it simple and concise. Good books, advisors from Small Business Development Centers, business schools and available software can be of help for making a great business plan.

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com – The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

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Author: Alexander Gordon
Article Source: EzineArticles.com
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