(Nonprofit Financial Management 10/12)
Full cost refers to the true cost of doing business for nonprofits, including total expenses, working capital, and reserves. In this webinar, NFF will walk you through the full cost of operating your organization and communicating that cost to funders. We’ll define the components of full cost, provide language that names and claims nonprofits’ full cost needs, offer guidance for prioritizing your organization’s hidden costs, and share tips for discussing full cost with key stakeholders.
For more information and to download the slides and companion workbook: [ Ссылка ]
In this video:
00:00 - Intro
00:27 - Background on NFF
01:01 - Learning goals
01:27 - Prioritizing full cost needs: Build financial health over time
04:05 - What is full cost?
07:54 - 1) Total expenses
09:39 - Defining unfunded expenses
12:00 - Reflections
13:00 - 2) Working capital
14:56 - 3) Reserves
17:43 - 4) Debt principal repayment
18:16 - 5) Fixed asset additions
18:58 - 6) Change capital
21:36 - When change capital is helpful
23:24 - Defining buy dollars and build dollars
25:20 - Change capital is intended to support business repositioning
26:49 - When change capital is misapplied
28:39 - Confusing buy dollars and build dollars makes bad funding dynamics
29:25 - Funder rights change with type of money given
30:51 - Reflections
31:25 - Three 'must haves' apply to ever organization
33:00 - Advice for nonprofits & advice for funders
33:57 - Outro
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