Han Group LLC’s Post

🌟 Diversify Funding Streams - And Not for the Reason You Think 🌟 Most people get concerned with government funding because of sudden budget cuts or delays in payment - leaving an organization scrambling. Yes, that's terrible. But you should be diversifying for other reasons, too. In my 15+ years of guiding nonprofits, a critical challenge stands out: heavy reliance on government funding. While these funds are vital, they often come with restrictive margins that can leave a nonprofit cash strapped with little wiggle room. 📉 The Reality: Government funding covers essential costs but rarely leaves room for unexpected needs or growth opportunities. This lack of flexibility can threaten an organization's stability and growth. It most certainly limits a nonprofit's ability to take risks that can really move the organization forward. Most organizations I see with a heavy concentration of government funding are, put simply, hanging on by a thread. 🏔 🎯 Strategic Solution: Diversify your funding. Strive for at least 50% of your income from unrestricted sources. This shift isn’t just about financial health; it’s about granting your organization the autonomy to pursue its mission without undue restrictions fully. Empowerment through Philanthropy: Embrace philanthropic contributions that offer unrestricted funding. These resources are crucial for allowing your nonprofit to innovate, plan strategically, and remain resilient in the face of financial fluctuations. Put another way, don't push a donor to put restrictions on gifts when they aren't trying to attach the strings (I see this a lot with pushing for restricted endowment gifts). 🔍 Future Focus: Let’s redefine how we finance our missions. By diversifying our revenue streams, we ensure our nonprofits are surviving and thriving. #NonprofitSustainability #FinancialFreedom #nonprofit #fundraising #philanthropy #development #government #thecharitycfo #accounting #grants #grantwriting

Given the expected rate cuts by the Federal Reserve in 2024, nonprofit investment committees will need to re-examine their organization's cash reserve strategy. Fortunately, Bernstein's guide provides a helpful framework for sizing your organization's cash reserves. You can find it here:

Cash management for #nonprofits can be tricky. Luckily, Bernstein has a guide to help you size your reserves for the future. Get the details here:

Cash management for #nonprofits can be tricky. Luckily, Bernstein has a guide to help you size your reserves for the future. Get the details here:

Cash management for #nonprofits can be tricky. Luckily, Bernstein has a guide to help you size your reserves for the future. Get the details here:

Cash management for #nonprofits can be tricky. Luckily, Bernstein has a guide to help you size your reserves for the future. Get the details here:

Cash management for #nonprofits can be tricky. Luckily, Bernstein has a guide to help you size your reserves for the future. Get the details here:

Cash management for #nonprofits can be tricky. Luckily, Bernstein has a guide to help you size your reserves for the future. Get the details here:

Cash management for #nonprofits can be tricky. Luckily, Bernstein has a guide to help you size your reserves for the future. Get the details here:

Cash management for #nonprofits can be tricky. Luckily, Bernstein has a guide to help you size your reserves for the future. Get the details here: