Practical guidance for local decisions with real consequences.
The insight index
09 entries on this page
The most dangerous sentence in not-for-profit finance is: 'But we have cash in the bank.' Sometimes you do. Sometimes it is already spoken for.
The legal minimum is not always the practical minimum. Funders, banks, boards, and agreements may ask for more than the statute does.
A board package can be technically compliant and still not help anyone make a decision. That is a problem.
Small teams cannot copy the control system of a large organization. They need controls that actually fit the people they have.
A surplus is not always a win. In funded environments, it may be deferred, restricted, recoverable, or explainable only after three spreadsheets and a coffee.
Buying the building can be a great move. It can also quietly turn an operating business into a real estate risk it did not plan for.
In funded health organizations, payroll is not just an expense. It is the operating engine, the budget pressure, and often the reconciliation headache.
A shareholder loan starts as a balance sheet account. Left alone, it can become a tax problem with interest, reassessments, and a very unpleasant conversation.
Profit is a story about performance. Cash is a story about timing, debt, taxes, inventory, receivables, and owner withdrawals.
