Once the NPO is established and ready for everyday operation, the board of the organization must ensure that there is enough capital to run the business. A successful nonprofit relies upon a steady flow of funding for its operational expenses.
Operational budget
Making sure that the budget is actually functioning as planned is the first duty of the board and Chief Financial Officer. Paying close attention to initial financial reports will form a firm foundation to make sure that the NPO remains on target financially.
A newly established nonprofit should have projected a 5 year budget before the start of operations. If the creator of the budget was overly optimistic in his or her projections, then accessing and implementing an operational budget will be problematical, and a rethinking of the finances of the NPO must take place. Board members must allocate specific funds as they come in and subsequently adjust the planned budget. Being able to work with change and knowing how to adjust to new economic realities are some of the most important traits for members of a new nonprofit.
