While financial forecasting is essential for any organization, it can pose unique challenges for not-for-profits. Unlike businesses, not-for-profit organizations often face uncertainty in predicting the number of future donors, the amounts they'll contribute and the timing of those contributions, among other revenue-related factors.
Despite these hurdles, financial forecasting remains a valuable tool for nonprofits. Let's explore what it involves and how you can leverage it effectively.
The American Institute of Certified Public Accountants (AICPA) makes a distinction between the terms "forecast" and "projection." Whereas projections are based on hypothetical assumptions, forecasts generally represent what accounting professionals expect an organization's financial position, results of operations and cash flows to be in the future.
Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett (CSH).