How Nonprofits Can Make the Most of Their Cash Flow

The state of Illinois is facing its most pressing state budget crisis in history. By law, a 2016 budget for Illinois should have been passed no later than July 1, 2015. And it’s begun to take its toll on public universities and non profit organizations alike, especially in the big city of Chicago.

Recently, all students and employees at Chicago State University were told to turn in their keys to campus buildings and offices. CSU, which primarily serves minority and low-income students, is preparing for potential widespread layoffs that can begin as early as April 30.

Nonprofit organizations have also started to feel the pinch.

The United Way of Illinois reported that only 23% of agencies that offer support to struggling residents would be able to operate at existing levels with no solution to the impasse in sight. 

How Can Nonprofit Management Save Money When and Where It Matters Most?

For nonprofits, when an issue is larger than your individual organization, one of the more beneficial cost reduction strategies is reaching out to others in the industry.

Expense Reduction Analysts (ERA) has helped for-profit companies recover extra cash flow from their supplier base and was successfully able to entrench its practice into the very large nonprofit industry that exists in the Chicago area. 

An important part of the Chicago nonprofit industry is an organization called the Back Office Cooperative, which also exists to free up resources for nonprofits to maximize their impact in the community. Because ERA and The Back Office Cooperative share complementary goals, they entered into a strategic planning for nonprofits agreement to work together to strengthen each other’s impact.

Working together with the Back Office Cooperative, consultants were able to restructure the nonprofit’s business model to be powered by ERA, resulting in a 50% growth in 2015 membership and an improvement in BOC’s expense management services.

BOC’s mission is to generate savings to increase the impact of nonprofit services in the communities they serve. This is especially important now, as the health of Chicago nonprofits are severely declining due to the state’s budget impasse, which is keeping the allocation of funding for nonprofits at a standstill while government struggles to find a solution to the state’s deficit.

BOC is available to serve nonprofits throughout the US, not just Chicago. ERA is currently working with group in Colorado and a potential group in Baltimore.

To read more about the BOC, click here

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