As you budget for the rest of your fiscal year or the next, the best practice right now is to create multiple scenario budgets ranging from most to least likely. Take into consideration giving trends from previous years compared to this year, variable and fixed costs, PPP loans (if applicable), and timing of expenditures. The regular budgeting process is just not very practical these days.
2. Trend Analysis
Trend analysis is a helpful tool and now is no exception. You’ll want to compare the last six months with the previous few years to see how giving and expenses are comparing to 2020 to project the next six months if possible. Look at giving for your top donors to see if there are any historical indicators to help predict giving for the rest of 2020. Did they give already and will they give again or was their recent giving above and beyond their regular giving?
3. Internal Controls
Internal controls and access rights still apply in a virtual environment. Look at your systems, folders, and software and evaluate access rights. Who can access folders in your network? Are they secured and limited to a “need-to-know” basis? Who has access to your bank accounts and accounting software? Who has access to the online giving platform and who can change bank account information in the system? If you’re no longer passing the plate and using a giving box instead, is the box locked? Who has the key to the box?
4. Digital Records Management
Digital records management is an increasingly important topic. We recommend following your existing document retention and destruction policy even for digital files. It’s easier to save electronic files because they don’t take up physical space, but it’s still a best practice to not have more files than needed. Networks get cluttered and if there was ever a legal request for records, you don’t want to give more than you have to.
5. PPP Loan
PPP loans application extension – did you know you can still apply for a loan if you didn’t apply in the first round? It’s not too late! You have until August 8th now. Check out our COVID resource center and subscribe to the updates to make sure you hear the latest news.