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Financial Business Case for a Not-for-Profit Organization
Financial Business Case for a Not-for-Profit Organization
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- Select either an existing NGO or Not-for-Profit entity that you think should be created or expanded (domestically or internationally)
*To the writer: If you have no idea which entity you want to choose, I can recommend City Harvest and Legal Aid Society. - Research the financial environment for establishing such an entity:
For domestic and international organizations For international organizations
a. Fund-raising environment a. Currency exchange rates
b. Registration requirements (Types of Registration) b. Inflationary conditions
c. Bank lending rates c. Country risk - Develop a fundraising strategy for the nonprofit organization
- Forecast a three-year quarterly operating budget for the entity (spreadsheet with supporting assumptions)
- Create a monthly Cash Flow Budget for year one (Spreadsheet with supporting assumptions)
- Prepare a three-year annual pro forma Activity Statement and Balance Sheet (spreadsheet with supporting assumptions)
- Calculate relevant financial ratios for the entity (current and forecast years)
- Create scenarios for two possible investments and using discounted cash flow analysis evaluate each scenario
- Identify two of the greatest risks that non-profit faces and assess their implications on financial performance using sensitivity analysis on your pro forma financial statements