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Rate Your Organization's Financial Health

  1. Did your organization have more revenue than expenses in at least seven of the last 10 years?
    Yes   No
      
  2. Does your organization have a cash operating reserve of at least 90 days?
    Yes   No
      
  3. Does your organization have an endowment fund? (An endowment is money you have invested. The principal remains intact while you use the income for operating expenses.)
    Yes   No
      
  4. Does your organization get at least 5% of its total income from endowment earnings? 
    Yes   No
      
  5. Do you seek input from staff members in developing your budget and hold them accountable for staying within that budget?
    Yes   No
      
  6. Do you have a reserve fund that you can use immediately, today, if a sudden opportunity (or crisis) arises?
    Yes   No
      
  7. Do you have good relationships with bankers?
    Yes   No
      
  8. Do you borrow money occasionally?
    Yes   No
      
  9. Do you have sources of revenue from non-traditional, non-governmental sources?
    Yes   No
      
  10. Is your organization financially flexible enough to accommodate changes in service delivery?
    Yes   No
      
  11. Do you have at least four different sources of income?
    Yes   No
      
  12. Does each of these income sources make up less than 30% of your income?
    (If one income source makes up more than 40% of your budget, this is a serious danger sign. If one source of income makes up more than 50% of your budget, you are in deep trouble!)
    Yes   No  

  

 

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