5 Lessons from Shutting Down a Nonprofit

About a decade ago, I helped a once multimillion-dollar nonprofit with about 50 employees close its doors, and before it was over, board members wrote personal checks to cover money owed to the IRS. In this episode, I share the five lessons I took from that work. And these lessons are essential for chief executives and board members alike: keep a cash flow projection, cut staff or expenses long before payroll is at risk, treat your audit and government filings as sacred deadlines, never let your directors and officers insurance lapse, and watch for the small missteps that add up to insolvency. I also answer a question from the live audience about whether cutting staff actually keeps an organization open, and share a free cash flow projection template to get you started. You can get my free cashflow projection template at www.successfulnonprofits.com/cashflow This episode answers questions like: How do I know if my nonprofit is headed for financial trouble? What should I do if I'm worried we won't make payroll? When should a nonprofit lay off staff to stay afloat? Can we pay employees their net checks now and catch up on payroll taxes later? Should our nonprofit use a line of credit to get through a cash shortfall? Links mentioned in this episode: Free cash flow projection template: https://successfulnonprofits.com/cashflow/ Board retreats and board development: https://successfulnonprofits.com/build-the-board-you-need/ Executive coaching for nonprofit chief executives: https://successfulnonprofits.com/individual-coaching/ Curious about a board retreat or executive coaching? Contact me using the contact form: https://successfulnonprofits.com/contact-us/ Looking for more? Check out these other amazing episodes: How to Deliver Bad News to Your Board Without Losing Trust: https://successfulnonprofits.com/deliver-bad-news-nonprofit-board/ The CFO Crash Course with Tosha Anderson: https://successfulnonprofits.com/portfolio/the-cfo-crash-course-stepping-up-your-nonprofits-accounting-game-with-tosha-anderson/ Top 5 Mistakes Nonprofit Executive Directors Make with Marvin Webb: https://successfulnonprofits.com/portfolio/top-5-mistakes-nonprofit-executive-directors-make/ Join the live virtual audience for podcast recordings (and bring your question for the Q&A). Topics, guests, and times are announced in my newsletter, and you can sign up at this link: https://successfulnonprofits.com/newsletter-signup/