Managing Your Small Charity’s Cash Flow

Our top 3 tips for managing your small charity's cash flow

Running a small charity can be incredibly rewarding, but managing finances is often one of the trickiest aspects. Without careful planning, even the most impactful organisations can struggle to keep their cash flow steady. To help, we’ve put together three essential tips to ensure your charity remains financially healthy while continuing to do great work.

1. Budget Wisely

A detailed budget is your charity’s financial roadmap. It should account for every source of income and expense, from regular donations to event costs. Regularly reviewing your budget against actual spending allows you to spot any potential shortfalls early, giving you time to adjust or seek additional funding.

2. Diversify Funding Sources

Relying on a single income stream is risky. Diversifying your funding - through grants, fundraising events, regular donations, corporate partnerships, and more - can ensure a steady cash flow. Take inspiration from similar charities.  Talk with them and explore what works for them - charities are often very willing to support others with their knowhow. The more diverse your funding, the better equipped you'll be to handle unexpected changes. 

3. Monitor Cash Flow Regularly

Keeping a close watch on cash flow is essential. Conduct monthly reviews to track income and expenditure patterns, and if your finances are tight, consider weekly checks. This approach allows you to make proactive decisions and avoid being caught off-guard by financial surprises.

By following these tips and staying organised, your small charity can stay financially resilient, allowing you to focus on making a bigger impact.

Come along to Charity Chatter on the first Wednesday of every month to connect and learn from guest speakers and other charities within the community.

If you need help with your charity's bookkeeping and understanding how to monitor your cash flow more effectively, you can get in touch with our team here.