18 November 2015

Improve your NFP’s financial independence

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Capital and impact are key concerns that all social purpose organisations want to excel at. 

Recent media reports and benchmarking surveys have shed light on concerns regarding the on-going long term sustainability of the Not for Profit sector.

A recent report into how NFP's can better utilise their assests concluded innovation and financial capacity is needed to remain viable under increasing market pressures.

Does your organisation have the capacity to take-up innovative methods of revenue generation? 

Or, do you want to strengthen your organisations’ financial sustainability with better processes?

The recent Community Council of Australia report illustrates a bleak outlook for the fiscal future of the Australian Not for Profit sector.

Simply put, the NFP sector has become a victim of its own incredible growth as Government funds come, but do not remain.

Government funding accounts for 30% percent of all sector finance and has been responsible for $43 Billion in growth in only 6 years, yet  this trend has stalled leaving the sector saturated with many NFP's not having a clear value proposition.

As competition for the Government dollar reaches an all-time high, reporting requirements are becoming more stringent.

"Financial independence," the CCA argues "is the only possible intervention to the problem, and it needs to be addressed pre-emptively before irreparable financial impacts are made."

Two core recommendations made include;

a) The diversification of income

Fundraising performance has changed over the past 10 years and continues to transform while competition becomes fierce. Diversifying income and implementing a robust financial model will help you to stand out.

Incorporate a broad portfolio of fundraising strategies into your strategic plan which should align with the culture of the whole organisation for better integration and financial stability.

b) The development of a unique value proposition. NFP’s need to think like a business in order to survive in a now business like environment

Defining your strengths and enhancing your ability to create ‘shared value’ boosts your market reputation, positioning your organisation well in a competitive in the market.

Start the discussion with your NFP organisation, because with increasing competition and limited resources, Not for Profits need now to ensure strategies are in place to optimise revenue streams and measure their impact.

To hear more on how to increase the likelihood of your organisation’s long term viability and ensure financial sustainability, attend the 2016 Not for Profit Income Generation Conference this upcoming February in Sydney!

After finishing University with a degree in Business Marketing, I decided to make a big jump across seas for the first time and move from the east coast of America to Sydney, Australia. I landed my first job in a sales position in the event industry and soon thereafter moved into a marketing assistant role – following I had the pleasure of interviewing with Akolade which got me to where I am today.

Akolade is a fun, innovative company that brings together people from different walks of life to implement change. As the Marketing Manager, I have the pleasure of wearing many hats which motivates me to succeed, reach people in an array of avenues, grow our events to their full potential, and raise our story. As for me, I am a kind dedicated woman who loves to work hard, exercise, cook, be social and have some fun.

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