Financially alert and astute NPO leaders
We believe that leaders of NPO’s should be financially alert and astute and so be more aware of financial dangers and pitfalls as well as new opportunities for broadening income streams and building financial sustainability.
In these unpredictable times in the sector, it is only the organisations that have implemented good strategies for financial sustainability that will successfully ride the storms ahead. Consequently website, Ziyo plans to, once again, offer workshops on financial sustainability in 2014. In addition to our usual one day workshop introducing strategies for financial sustainability, we are planning an advanced workshop at which we will focus particularly on possible “business models” for NPO’s that focus on income generation through the provision of services, trading and investment. This workshop will consider some of the dangers and pitfalls associated with such models, as well as the opportunities.
We will also try to ensure that you are updated, through Ziyo News and our website, with the constantly changing issues related to employees’ tax and SARS. The Employment Tax Incentive Act is one recent development which presents some opportunities for NPO’s (as employers). We also plan to offer information sessions related to payroll and to some of the dangers and pitfalls relating to SARS and the law. The failure to pay over PAYE and other taxes to SARS results in steep penalties and interest and has already caused many an organisation to close its doors. Be aware, be astute – pay SARS first!
Another issue that has tripped up some organisations has been their extensive use of cash to make payments (because they thought the use of large amounts of cash was unavoidable or enabled them to save money). The dangers and pitfalls of using cash to make payments are significant so we intend, in the second half of the year, to offer our one day workshop on this topic, entitled “Cash and Accountability”. In dealing with cash, as with all areas of financial management, there is a cost to implementing effective control – financially astute NPO leaders need to weigh up this cost against the risks and benefits of increased control.
Aside from these open, “public” workshops, we are also available to facilitate and run workshops specifically for your organisation or for a group of organisations -some topics that have proved particularly popular with, and helpful for, NPO’s include:
- Financial management for project managers
- Risk assessment and management for NPO boards
- Activity-based budgeting
- Effective cash flow management
- Understanding NPO financial reports
Please contact Ziyo if you are interested in any of these workshops.
The open training schedule for 2014 will be finalised and available by the end of January, giving you the opportunity to consider which areas of capacity development would benefit you, your colleagues and your organisation as a whole.
We wish you every success in 2014.