As we enter into 2021, we can confidently say we got through one of the most difficult years in recent history. The coronavirus pandemic changed the way we socialize, celebrate holidays, attend school, run a business, and many other aspects of everyday life.
As a nonprofit professional, having to adapt to things such as working from home may have brought up some areas in your organization that could use a little updating. Here are just a few financial resolutions for you and your nonprofit to keep in mind in 2021.
Start Long-Term Planning
Even though this last year has shown us that it may be nearly impossible to know what’s going to happen a year from now, creating a multi-year budget might be in your nonprofit’s best interest. Instead of vague idealistic goals for your organization, start using current financial data, trend analysis, and economic forecasting to make achievable goals and milestones for the next five years. What can you do now to build a strong foundation for your future success?
Use Financial Dashboards
Instead of bogging down board members with pages and pages of financial data, consider using a visually pleasing dashboard to simplify statements and make them easy to understand and analyze. A one-page data report can facilitate meaningful conversation, determine key performance metrics, and convey relevant information. Check out our blog on demystifying financial data for board members using dashboards.
Create an Emergency Fund
2020 has proved the need for emergency reserves. If your nonprofit doesn’t have an emergency operating reserves fund, create one to help stabilize expenses during sudden bumps in the road or unexpected losses of income. If you already have one, review its regulations. What is considered an emergency? How much can you withdraw from the fund? What is your plan to replenish the fund? Remember, emergency operating reserves should be to help your nonprofit during short-term problems, not long-term financial structural issues.
Jacobson Jarvis is ready to help you with all of your not-for-profit financing and accounting needs in the new year. Whether you’re a 501(c)3 organization, a small social club, or a religious institution, Jacobson Jarvis provides unmatched quality of work and customer service for the entire non-profit community. Contact us today to get started.