When an institute or foundation selects partner organizations to generate impact, it looks for NGOs that not only cause a significant impact, but also have synergy with its values and objectives. However, it is important to assess the financial health of these organizations to ensure a sustainable and effective partnership with the receipt of resources.
A lack of visibility can jeopardize the impact of your organization and its partners. For example, misdirected grants can be used to constantly address immediate crises, diverting resources from projects that are aligned with the core cause. Organizations without a solid financial structure face a higher risk of closing or failing to deliver results, forcing funders to continually invest in finding new partners. In addition, a lack of transparency can undermine trust and reputation among both existing and future partners.
Why do a financial diagnosis?
To mitigate these risks, our exclusive methodology assesses the financial health of organizations quickly and clearly, proposing actions focused on improving results. We recently applied this solution to an organization (name reserved to preserve confidentiality). The organization spent just 2 hours providing the necessary data. In less than a day, we identified that the institution had an average level of financial health, mainly due to low revenue diversification and limited data reliability. For example, we suggested that the organization evaluate the feasibility of implementing strategies to diversify its revenue, such as participating in government tenders, which are currently not carried out.
Benefits of financial diagnosis
With the diagnosis delivered in just 1 day, the organization and its funders now have more clarity about the current situation and can direct efforts to improve results. The diagnosis allows:
- Identify areas that require immediate attention and monitor the evolution of organizations over time;
- Strengthening the relationship between funders and supported organizations, enabling them to work together to achieve common goals;
- Strategies to strengthen the organization's financial structure.
Are you interested? Schedule a conversation with our consultants and discover how we can help leverage your institution's sustainability and impact.
Through a financial health diagnosis, you will have the necessary tools to make strategic and safe decisions quickly and practically, benefiting your institution and your financed parties.
