Click on the NMG logo for the home page
| HOW
CAN WE PAY THE NONPROFIT MANAGEMENT GROUP IF
WE HAVE NO CASH?
It
is frequently most efficient and least expensive to bring in an experienced
consultant who can address the issues quickly and produce
results with time-tested ideas that work. We accomplish this by functioning
in a cooperative and coordinated manner with the client's employees to
implement change as rapidly as efficiently as possible.
But if we have no cash, how can we
afford to bring the Nonprofit Management Group into the picture to help
us?
Many
people think that the most important asset during a difficult time is
cash. In reality, leadership credibility is more important
even than cash. If stakeholders
believe that the leadership has a solid plan and is working hard to “right
the ship”, they will pull together as a team to help make the effort successful.
The Nonprofit Management Group can help you to work through these
difficult situations by first building more credibility with your stakeholders
and then by operating in a pragmatic manner.
Some of the tools that we can help you bring to bear on the cash
problem are:
- Discussing the need for help with
the board and/or a key donor. The
Nonprofit Management Group will help them to determine if there could
be a solid plan that could be constructed leading to the success of
the organization. If so, they often will fund a portion or
all of the work that may be required.
- Negotiating extended payment terms
with certain or all creditors.
- Negotiating an increased credit
line.
- Obtaining board approval to utilize
unrestricted reserve funds because of the emergency nature of the situation
and the need to immediately improve the health of the organization.
- Prioritizing programs and services
and focusing more resources on fewer areas, thereby leaving cash available
for long-term improvements.
- Improving systems and resolving
disputes to collect receivables more quickly.
- Identifying and selling off excess
or underutilized assets (e.g., land, buildings, equipment, etc.) and
renegotiating or canceling leases.
- Renegotiating other major contracts.
- Reducing overhead expense and
personnel who are not pulling their weight.
- Increasing prices for certain
specific services or products where your organization has competitive
advantages.
- Providing information to help
obtain a grant for capacity-building.
- Operating on a commission basis.
- Outsourcing certain functions
to others to reduce cost.
- Investigating cost reductions
through employee leasing, insurance cost reductions, purchasing efficiencies,
etc.
The
Nonprofit Management Group will help your organization structure a solution
that is tailored to the constraints of your unique situation. The Nonprofit
Management Group will help you to understand the critical alternatives
and the potential benefits that can result once “fighting fires” is not
the normal routine each day for your organization.
All contents are Copyright © 2007
the Nonprofit Management Group, L.L.C. |