The financial sustainability of a non-profit organization refers to the ability to maintain financial capacity within the organization over a long time. The financial capacity consists of the financial resources within the organization that aid in the achievement of objectives (Francois & Francois, 2014, p. 118). Therefore, the organization’s financial sustainability goals should be to maintain the services of the services offered by the program in a way that counters any short-term economic drawbacks. The program must also balance its need to maintain financial sustainability with the fulfillment of its core objectives.
The program needs to secure funding as a result of its non-profit nature, and some of the ways to do this will be through fundraising initiatives (Francois & Francois, 2014, p. 126). Therefore, this can be done by holding events. Engaging in commercial activities like printing and selling merchandise will also ensure financial sustainability. The program can also apply for government grants or membership fees as another means of ensuring financial sustainability (Francois & Francois, 2014, p. 126).
In order to ensure financial sustainability, the program must have a committee to formulate a proper financial sustainability plan. This plan will include an executive summary of the program’s finances, and it will also incorporate the program’s budget, which is a very critical document in the program. The program can set up long-term projections in a budget, for example, five-year projections, which can be adjusted according to fiscal realities (Francois & Francois, 2014, p. 114). The budget’s anticipation of future expenditures enables effective financial planning, and this will ensure sustainability.
Reference
Francois, E. J. P., & Francois, E. J. P (2014). Budget and financial sustainability. In Financial sustainability for non-profit organizations (pp. 114-126). Springer Publishing Company.