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  • 05 Apr 2016 10:13 AM | ONZL Team (Administrator)

    All organisations, public or private are constrained by resourcing. This means most organisations are constantly prioritising issues which often results in hasty, short term resourcing decisions.

    Just like any other business, industry associations need the same range of skills and resources. The problem however is that they often require small amounts of a wide range of skills, on an ad hoc basis. For this reason, it's simply not cost effective for associations to hire a raft of part time staff or invest in a full office infrastructure.

    Relying on an individual means you have no cover in the event they are unwell or on leave, and when they leave, much of the organisations history leaves with them.

    This is where an embedded outsourcing model can help. Embedded outsourcing shares the costs and resources, leaving the hiring and management of resources to someone else while you focus on core functions. It also provides the organisation with resilience and longevity.

    Imagine having a team that can answer the phone as your organisation, as well as dealing with your members and stakeholders inquiries? Embedded outsourcing lets you delegate your work load, overcome seasonal workflow, control your operating costs and lower infrastructure investments.

    In short, you are engaging a dedicated team with the expertise you need, when you need it. Whether its Board secretariat services, membership management, finance or office support, embedded outsourcing is an attractive and viable alternative.

  • 07 Mar 2016 9:15 AM | ONZL Team (Administrator)

    Not-for-profit organisations often begin their financial year with a healthy budget and cash in the bank. Six months on though, finances often take a more prominent seat at the Board table as the state of membership renewals, targets and project budgets are monitored more closely.

    Knowing your total expected revenue and expenditure for the year allows you to recognise if your organisation is going to make a surplus or deficit in time for you to make any necessary changes. Forecasting doesn't need to be as onerous as it sounds, in fact it will help your organisation more than you can imagine.

    Here's our forecasting checkpoints:

    • Is the current trend of actual expenditure and income (including membership renewals) likely to continue?
    • How does your actual expenditure and income vary from the original budget?
    • Have there been large under or over spends that are likely to continue?
    • Have any projects been deferred?
    • Is there any new expenditure on the horizon which wasn’t anticipated when the budget was prepared?

    Forecasting cash flow is equally important and is essential for not-for-profit organisations that mostly operate on low reserves. Cash flow can be irregular depending on the timing of membership renewals, sponsorships and grants.

    When forecasting cash flow use these checkpoints:

    • What is your opening cash balance?
    • What are your expected inflows for the month?
    • What are your expected monthly out flows (including salaries, accounts payable and taxes)
    • Estimate conservatively. You may know when you are going to make payments but you need to estimate when other people will pay you too. It is not uncommon for organisations to pay at 60 days as a standard or even 90 days.
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