Financial Contingency Planning in Uncertain Times: Strategies for Financial Survival

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Explore the importance of contingency planning in uncertain times, such as during a pandemic. Learn about the factors influencing income, components of contingency plans, and how to address temporary cash shortages effectively. Discover the significance of operating reserves, cash flow projections, and communication strategies for successful financial survival.


Uploaded on Oct 04, 2024 | 1 Views


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  1. FINANCIAL CONTINGENCY PLANNING IN UNCERTAIN TIMES FINANCIAL SURVIVAL DURING A PANDEMIC

  2. WHY DO CONTINGENCY PLANNING? ANY NUMBER OF FACTORS CAN IMPACT INCOME LARGE PORTION OF INCOME COMES FROM A SINGLE SOURCE FACILITATES THE STRATEGIC USE OF RESOURCES WHAT WILL WE DO IF INCOME DEVIATES SIGNIFICANTLY?

  3. WHY DO CONTINGENCY PLANNING? HOW AND WHEN PLANS ARE COMMUNICATED COMMUNICATION OF PLANS SHOULD AVOID STRESS AND UNCERTAINTY ATTENTION TO STAFF MORALE IS VITAL SOME PLANS MAY NEVER BE USED

  4. COMPONENTS OF CONTINGENCY PLANS OPERATING RESERVES CASH FLOW PROJECTIONS BUDGET REDUCTIONS BANKING RELATIONSHIPS WHO DOES CONTINGENCY PLANNING

  5. WHAT ARE OPERATING RESERVES UNRESTRICTED FUND BALANCES PROVIDE A CUSHION TO SURVIVE LEAN PERIODS ENHANCE CAPAPCITY TO DEVELOP NEW PROGRAMS AND SUSTAIN CURRENT PROGRAMS MAINTAIN STEADY DISTRIBUTIOIN TO PROGRAMS AND MINISTRIES

  6. WHAT IS THE APPROPRIATE LEVEL OF OPERATING RESERVES? WHAT IS THE NATURE OF INCOME: BROAD BASED? A FEW LARGE CONTRIBUTIONS IRREGULAR CASH FLOW, SEASONAL FLUCTUATIONS NATURE OF EXPENSES PROPERTY AND EQUIPMENT CONSIDERATIONS LONG-TERM DEBT AND OTHER LIABILITIES

  7. CASH FLOW PROJECTIONS PRIOR YEAR HISTORY IS A GOOD PLACE TO START HOW MUCH MONEY FROM EACH INCOME SOURCE? HOW MUCH WILL BE SPENT EACH MONTH? CONSIDER NON-BUDGET ITEMS: ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE UPDATE AT LEAST QUARTERLY

  8. HOW TO ADDRESS A TEMPORARY CASH SHORTAGE? LOANS AND LINES OF CREDIT EXPEDITE COLLECTION OF RECEIVABLES LIQUIDATE INVESTMENTS RENEGOTIATE TERMS WITH VENDORS AND MINISTRY PARTNERS CHANGE DESIGNATON OF PREVIOUSLY DESIGNATED FUNDS CANCEL OR DELAY NON-ESSENTIAL SERVICES, TRAVEL

  9. HOW TO ADDRESS A TEMPORARY CASH SHORTAGE? FREEZE NEW DISCRETIONARY GRANTS FREEZE CAPITAL EXPENDITURES HIRING FREEZES FOR NEW AND OPEN POSITIONS CONSIDERING LEASING VS. PURCHASING EQUIPMENT INVITE MEMBERS TO MAKE SHORT-TERM LOANS ENGAGE STAFF IN MAKING RECOMMENDATIONS

  10. BUDGET REDUCTIONS ACROSS THE BOARD CUTS EASY TO ADMINISTER DOESN T ACCOUNT FOR DIFFERENCES IN PROGRAMS TARGETED CUTS CONSISTENT WITH CORE STRAGEGIES PARTICIPATORY PROCESS OPERATIONS, PROCESS OR TECHNOLOGY-DRIVEN CUTS CHANGE PROCEDURES THAT WILL REDUCE WORK REQUIRED MAY REQUIRE CAPITAL INVESTMENTS

  11. OTHER THINGS TO CONSIDER WHEN REDUCING BUDGETS NATURE OF THE DEFICIT CONSTITUTION AND GOVERNING DOCUMENTS TIMELINES: CURRENT PERIOD; MULTI YEAR RECOVERY ARE CURRENT OBLIGATIONS BEING MET? IMPACT ON MINISTRY PARTNERS UNDERSTAND SOURCES OF PLACES TO CUT

  12. COMMUNICATING BUDGET CUTS DEVELOP A PLAN FOR COMMUNICATING SPEAK TO THE REASONS FOR TAKING ACTION DETERMINE APPROPRIATE TONE AND LEVEL OF URGENCY TIMING AND MEANS OF FOR COMMUNICATION EVERYONE NEEDS FULL ATTENTION OR SIMPLY TO BE COGNIZANT OF THE ISSUE

  13. COMMUNICATING BUDGET CUTS PEOPLE WANT TO KNOW HOW IT IMPACTS THEM PERSONALLY BE ATTENTIVE AND CAUTIOUS ABOUT WHIT IS PROMISED DELIVER ON PROMISES DO NOT EXPECT TO ACHIEVE 100% CONSENSUS

  14. BANKING RELATIONSHIPS IMPORTANT TO INCREASE CONTACT WITH FINANCIAL INSTITUTIONS CONSIDERATION OF LOANS AND LINES OF CREDIT IS A LINE OF CREDIT AVAILABLE/ADVISABLE?

  15. CONCLUDING CONSIDERATIONS BEGIN WITH PRAYER AND THANKSGIVING FINANCIAL DISCUSSIONS ARE VITAL TO MINISTRY NEW LIFE THROUGH JESUS CHRIST IS FOUNDATIONAL TO ALL DELIBERATIONS THROUGH THIS PROMISE WE CAN MINISTER FAITHFULLY IN TIMES OF ECONOMIC TURMOL AND UNCERTAINTY

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