Financial Business Case for a Not-for-Profit Organization

  1. 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.
  2. 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
  3. Develop a fundraising strategy for the nonprofit organization
  4. Forecast a three-year quarterly operating budget for the entity (spreadsheet with supporting assumptions)
  5. Create a monthly Cash Flow Budget for year one (Spreadsheet with supporting assumptions)
  6. Prepare a three-year annual pro forma Activity Statement and Balance Sheet (spreadsheet with supporting assumptions)
  7. Calculate relevant financial ratios for the entity (current and forecast years)
  8. Create scenarios for two possible investments and using discounted cash flow analysis evaluate each scenario
  9. 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