The 7 Steps to a Successful Not-For-Profit. Version 1.0. 7 common reasons for Business Success. 7 Steps to a Successful NFP. 7 Steps. Workbook: Page 4. Have a plan, not just a vision Monitor your financial position Manage cash Flow
7 Steps to a Successful NFP
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Mary & Friends Soup Kitchen Ltd was formed in 2005 with the sole purpose of helping those less fortunate with the basic necessities of food and drink. As the result of a natural disaster a number of years back, Mary and two of her friends experienced the hardships and challenges of being temporarily homeless. Mary and her friends saw the creation of the Soup Kitchen as a way of giving back to the community that had helped them, all those years ago.
With a common passion for cooking for family and friends they first began operating one night a month using the local community hall’s kitchen facilities. Over the years the organisation has certainly grown. Whilst serving the majority of their meals in the local community hall, there was an opportunity 2 years ago to purchase a soup van that now allows the organisation to set up mobile soup kitchens in other areas. As more and more people started to make use of the service they began to see the need to make the service more available, more often. As a result by the end of the 2nd year they had 6 volunteers helping to provide meals every second Friday at the local community hall. This has now grown to 30 volunteers and 3 remunerated positions (CEO and 2 paid supervisors) and the organisation now serves over 2,500 meals per year.
A number of strong relationships have been built over the years with local food retailers and restaurants who are encouraged to donate surplus food, rather than throw it out.
Review the business plan over the next few pages and provide Mary and the organisation with some thoughts on what has been done well and where the plan could be improved.
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In order to understand and monitor their financial position the organisation has provided the last 3 years financial statements and has requested your assistance in putting together a comprehensive report for delivery to the Board.
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Income Statement for the 3 x 12 months ending
30 June YYYY
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Balance Sheet as at 30 June YYYY
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The organisation is looking to produce and sell a cookbook to the local community as another way of raising much needed funds for the service.
What Mary would like to know is how many books the organisation needs to sell if they were priced at $20. She has calculated that the fixed costs for the book will be $360 and the variable cost per book will be $8.
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Additional Clients / Revenue
1. How much will it cost?
Impact of Growth
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The Cardinal Rule