PURPOSE AND INSTRUCTIONS

In light of COVID-19 and the new challenges it presents, many nonprofits are examining their funding sources and having to adjust their plans for the future.

By knowing exactly where your funding comes from, you can determine if you have a good mix of income streams or whether you are too dependent on only one or two sources. That way, when decisions come up and ideas for new programs or revenue sources are discussed, you’ll know how they’ll fit into the overall picture of your organization.

Print copies of the worksheet, which we’ve provided for free as a PDF. Have your Board Treasurer complete Part 1 (an example of Part 1 is provided). Distribute copies of your Treasurer’s completed version of Part 1 and a blank copy of Part 2 to each board member. Take 10 minutes to have each board member review the Treasurer’s findings in Part 1 and then fill out Part 2 of the worksheet. After the meeting, compile the answers and review at the next board or committee meeting.


Part One: For the Board Treasurer to Complete

Section 1: Determining the Mix

Use your organization’s current budget or last year’s end-of-year Profit & Loss Statement to determine major revenue sources. Enter the amounts into the corresponding fields below. You may need to combine some items to make them fit into the categories.

Determine the percentage of each revenue source by dividing the line item amount by the total for all revenue sources.

Draw the estimated portions on the blank pie chart in the free worksheet.

Section 2 – Determining the Risks

How stable is the funding in each of the individual categories? Are there trends or other factors that could affect your future funding mix?

Part Two: For the board to complete

Section 1 – Checking In

  1. Take a moment to review the findings from Part 1 (completed by your Treasurer) and consider if you are comfortable with your organization’s current funding mix. Then, complete the sentences below.
    1. What looks good here is…
    2. The part of this mix that makes me uncomfortable is…
    3. I need more information about…
  2. Is the funding mix what you thought it would be?

Section 2 – Questions to Consider

  1. What would happen if one of your major funding sources suddenly went away? What is a possible Plan B?
  2. Will this same funding mix work for your organization in 1, 3, 5 years?
  3. If no, what needs to be put into place now to get ahead of the transition or become more stable?

FOLLOW-UP

At the following meeting, take some time to discuss any concerns that were uncovered by doing this exercise.

You may want to assign a task force or committee to build an action plan for Part 2, Question 3.