Fall 2013 Issue of Horizons

NOT-FOR-PROFIT

Sustainability for Not-For-Profit Organizations by Judy Murphy, CPA

T he last few years have been very difficult for many not-for profit organizations; and while there have been some mergers and/or dissolutions, most organizations have survived, although clearly some better than others.

When faced with declining or threatened revenues, the first and natural inclination of many organizations is to reduce costs. As the economic downtrend reached the not-for-profit sector, many were forced to take a hard look at their expenses and cut costs where possible. At the same time, few not-for-profits wanted to reduce their capability to offer the programs for which they had been established. Efficiency and “doing more with less” became crucial. Still today, controlling costs is a fundamental component of sustainability.

What are some of the factors that are critical in attaining/maintaining sustainability?

Financial Strength One key area relates to the not-for-profit’s financial position and resources and the ability to react to changing conditions.

page 12 | horizons Fall 2013